N-CSR 1 d444679dncsr.htm N-CSR N-CSR
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-07142

Pyxis Funds II

 

(Exact name of registrant as specified in charter)

200 Crescent Court

Suite 700

Dallas, Texas 75201

 

(Address of principal executive offices) (Zip code)

Pyxis Capital, L.P.

200 Crescent Court

Suite 700

Dallas, Texas 75201

 

(Name and address of agent for service)

registrant’s telephone number, including area code: (877) 665-1287

Date of fiscal year end: September 30

Date of reporting period: September 30, 2012

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 


Table of Contents
Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.


Table of Contents

LOGO

 

Pyxis Funds II

 

Pyxis Alpha Trend Strategies Fund

Pyxis Alternative Income Fund

Pyxis Energy and Materials Fund

Pyxis Trend Following Fund

Pyxis Core America Equity Fund

Pyxis Dividend Equity Fund

Pyxis Premier Growth Equity Fund

Pyxis Small-Cap Equity Fund

Pyxis Global Equity Fund

Pyxis International Equity Fund

Pyxis Total Return Fund

Pyxis Tax-Exempt Fund

Pyxis Fixed Income Fund

Pyxis Money Market Fund II

 

 

 

Annual Report

September 30, 2012

 

 


Table of Contents
LOGO

Pyxis Funds II

Pyxis Alpha Trend Strategies Fund

Pyxis Alternative Income Fund

Pyxis Energy and Materials Fund

Pyxis Trend Following Fund

Pyxis Core America Equity Fund

Pyxis Dividend Equity Fund

Pyxis Premier Growth Equity Fund

Pyxis Small-Cap Equity Fund

Pyxis Global Equity Fund

Pyxis International Equity Fund

Pyxis Total Return Fund

Pyxis Tax-Exempt Fund

Pyxis Fixed Income Fund

Pyxis Money Market Fund II

 

  

TABLE OF CONTENTS

 

Notes to Performance

   1

Portfolio Manager Commentaries

   2

Fund Profiles

   32

Financial Statements

   46

Investment Portfolios

   47

Statements of Assets and Liabilities

   94

Statements of Operations

   102

Statements of Changes in Net Assets

   106

Statements of Changes in Net Assets - Capital Stock Activity - Shares

   112

Statement of Cash Flows

   116

Financial Highlights

   118

Notes to Financial Statements

   126

Report of Independent Registered Public Accounting Firm

   142

Additional Information

   143

Important Information About This Report

   153

Economic and market conditions change frequently.

There is no assurance that the trends described in this report will continue or commence.

 

 

A prospectus must precede or accompany this report. Please read the prospectus carefully before you invest.


Table of Contents

NOTES TO PERFORMANCE (unaudited)

  

September 30, 2012

 

Total returns take into account changes in share price and assume reinvestment of dividends and capital gains distributions, if any. Total returns shown are net of Fund fees and expenses. Total returns for Class A shares are shown for both with and without the imposition of the maximum applicable front-end sales charge, and the total returns for Class B and Class C shares are shown for both with and without the imposition of the maximum applicable contingent deferred sales charge (CDSC). Information on the maximum front-end sales charge and CDSC for each Fund can be found in Note 1 of the Notes to Financial Statements in this report.

The performance data quoted represents past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Periods less than one year are not annualized. Please call toll-free 1-877-665-1287 or visit the Fund’s website at http://www.pyxisais.com for the most recent month-end performance data.

An investment in a Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. An investment in a Fund is subject to risk, including possible loss of principal invested.

The S&P® 500 Index is an unmanaged, market capitalization-weighted index of stocks of 500 large U.S. companies, which is widely used as a measure of large-cap stock U.S. market performance. The S&P® North American Natural Resources Index represents U.S. traded securities that are classified under the GICS® energy and materials sector excluding the chemicals industry and the steel sub-industry. The Russell 1000® Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those companies in the Russell 1000® Index with higher price-to-book ratios and higher forecasted growth values. The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those companies in the Russell 1000® Index with lower price-to-book ratios and lower expected growth values. The Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The Russell 2000® Index is a market capitalization-weighted index consisting of approximately 2,000 of the smallest U.S.-domiciled publicly traded common stocks that are included in the Russell 3000® Index. The MSCI World® Index is a market capitalization-weighted index of equity securities of companies domiciled in various countries. The index is designed to represent the performance of developed stock markets throughout the world and excludes certain market segments unavailable to U.S. based investors. The MSCI EAFE® Index is a market capitalization-weighted index of equity securities of companies domiciled in various countries. The index is designed to represent the performance of developed stock markets outside the U.S. and Canada and excludes certain market segments

unavailable to U.S. based investors. The Barclays Capital High Yield Credit Bond Index is a total return performance benchmark for fixed income securities. The index covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+ or below.

The Barclays Capital U.S. Aggregate Bond Index is a market value-weighted index of investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities, with maturities of one year or more. The BofA Merrill Lynch U.S. Dollar LIBOR 3 Month Constant Maturity Index tracks the interest rate offered by a specific group of London banks for U.S. dollar deposits with a three-month maturity. The Barclays Capital 10-Year Municipal Bond Index is an unmanaged index composed of investment-grade, fixed rate securities with maturities of at least eight years and less than twelve years.

The 90 Day T-Bill is an unmanaged measure/index of the performance of U.S. Treasury bills currently available in the marketplace having a remaining maturity of 90 days.

The above indices/measures do not reflect the actual cost of investing in the instruments that comprise each index. Indexes are unmanaged and unlike a mutual fund, does not take into account fees, charges and taxes. It is not possible to invest in an index.

The peer universe of the underlying funds used for the peer group average annual total return calculation is based on a blend of Morningstar peer categories, as shown.

Morningstar is an independent mutual fund rating service. A Fund’s performance may be compared to or ranked within a universe of mutual funds with investment objectives and policies similar but not necessarily identical to that of the Fund.

©2010 Morningstar, Inc. All Rights Reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damage or losses relating from any use of this information. Past performance is no guarantee of future results.

Russell Investment Group owns the Russell Index data, including all applicable trademarks and copyrights, used in these materials. Any unauthorized use or redistribution of such Russell Index data is strictly prohibited. Russell Investment Group is not responsible for the configuration of this material or for any inaccuracy in presentation thereof.

The views expressed in this document reflect our judgment as of the publication date and are subject to change at any time without notice.

 

 

   Annual Report  |  1


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012   

Pyxis Alpha Trend Strategies Fund

 

 

Q: How did the Fund perform compared to its benchmark and Morningstar peer group for the periods since inception through September 30, 2012?

A: The Pyxis Alpha Trend Strategies Fund returned -6.20% for Class A shares for the period November 2, 2011 through September 30, 2012, -2.09% for Class C shares for the period February 27, 2012 through September 30, 2012, -5.90% for Class R shares for the period November 9, 2011 through September 30, 2012 and -5.80% for Class Y shares for the period November 1, 2011 through September 30, 2012. The MSCI EAFE Index, the Fund’s benchmark, returned 3.75% and the Fund’s Morningstar peer group, US OE Managed Futures, returned an average of -4.61% for the period November 1, 2011 through September 30, 2012.

Q: What market conditions impacted the Fund’s performance?

A: In October 2011 global equity markets were suffering from highly volatile news flow from European banks, based largely on fears over the ability of Greece, Spain and Italy to remain solvent. By October 2011 the MSCI EAFE Index had suffered a more than -25% decline from the highs seen earlier in the year.

In November, European leaders determined that intervention was needed and announced an emergency rate cut in overnight dollar swap contracts, and a new funding mechanism titled “LTRO” (Long-term refinancing operations). Global equity markets rallied sharply from oversold levels but continued to remain volatile through the end of the year, finally finding more stable footing in early 2012.

We have now seen several iterations of Federal bank intervention, in the form of “Quantitative Easing.” These actions tend to have positive short term impact, but the effects diminish with each new program. Long only investors should be concerned that while Quantitative Easing measures help to stabilize global equity prices, they do little to address underlying structural problems, ensuring more volatility to come. We see ample opportunity for Alpha Trend to exploit both short term volatility and macro price trends in the quarters ahead.

Q: What were the primary drivers behind Fund performance?

A: After a challenging final quarter of 2011, Pyxis Alpha Trend Strategies steadily out-performed the peer group in the Fund’s fiscal year 2012. The relatively narrow trends of the past year were not an ideal environment for the trend following components of Alpha Trend, but the market climate was ideal for the fund’s Counter-Trend Country Rotation strategy. In 2012 shareholders benefited from successful trades in China, Canada, South Africa and Emerging Markets exchange traded funds.

 

Eric Leake   Garrett Waters
Founding Partner, Chief Investment Officer at Anchor Capital   Partner and Chief Executive Officer at Anchor Capital

 

2  |  Annual Report


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Alpha Trend Strategies Fund

 

Pyxis Alpha Trend Strategies - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis Alpha Trend Strategies Fund    Since
Inception *
       Inception Date  

Class A Shares, without sales charge

     -6.20%          11/02/11

Class A Shares, with sales charge

     -11.59%         

Class C Shares, without sales charge

     -2.09%          02/27/12

Class C Shares, with sales charge

     -3.07%         

Class R Shares

     -5.90%          11/09/11

Class Y Shares

 

     -5.80%          11/01/11

* Not Annualized.

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

“Without Sales Charge” returns do not include sales charges or contingent deferred sales charges (“CDSC”). “With Sales Charge” returns reflect the maximum sales charge of 5.75% on Class A Shares. The CDSC on Class C Shares is 1.00% within the first year for each purchase; there is no CDSC on Class C Shares thereafter. A 2.00% redemption fee will be charged if Fund shares are redeemed or exchanged within the first two months of purchase. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Class A: 3.05%, Class C: 3.70%, Class R: 3.20% and Class Y: 2.70%.

See Notes to Performance on page 1 for more information.

The Fund invests in ETFs (Exchange-Traded Funds) and will bear its share of fees and expenses of the underlying ETFs. The Fund is subject to short sales risk which theoretically involves unlimited loss potential since the market price of securities sold short may continually increase. Investments in derivatives may not correlate to the performance of the underlying securities and may result in greater losses.

As a non-diversified fund, the Fund may invest a larger portion of its assets in the securities of one or a few issuers than a diversified fund. A non-diversified fund’s investment in fewer issuers may result in the fund’s shares being more sensitive to the economic results of those issuers. There is the risk that a fund’s high portfolio turnover will increase its transaction costs and may result in increased realization of net short-term capital gains, higher taxable distributions and lower after-tax performance.

Mutual fund investing involves risk including the possible loss of principal.

 

Annual Report  |  3


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Alternative Income Fund

 

 

Q: How did the Fund perform compared to its benchmark and Morningstar peer group for the period since inception of January 13, 2012 through September 30, 2012?

A: During the period since inception of January 13, 2012 through September 30, 2012, the Pyxis Alternative Income Fund returned -0.10% for Class A shares for the period since inception of, -0.15% for Class C shares, -0.19% for Class R shares and 0.17% for Class Y shares. The Barclays Capital U.S. High Yield Credit Bond Index, the Fund’s benchmark, returned 12.13% and the Fund’s Morningstar peer group, US OE Non-Traditional Bond, returned an average of 5.63% for the period January 1, 2012 through September 30, 2012.

Q: What market conditions impacted the Fund’s performance?

A: Since the Federal Reserve first began a zero interest rate policy three years ago in the form of Quantitative Easing, investors have had an ever shrinking menu of opportunities for yield and have piled record amounts of capital into high yield bonds. Record capital flows have pushed real yields to record lows, and created an environment of relative complacency, leaving investors vulnerable to short term market shocks.

We have now seen several iterations of Federal bank intervention, in the form of “Quantitative Easing.” These actions tend to have positive short term impact, but the effects diminish with each new program. Long only investors should be concerned that while Quantitative Easing measures help to stabilize market prices, they do little to address underlying structural problems, tending to cause more volatility to come.

With bond yields once again near record lows high yield bond investors may be ill prepared for negative headlines. We see ample opportunity for Alternative Income to continue exploit both short term price dislocations in credit, and macro interest rate trends in the quarters ahead.

Q: What were the primary drivers behind Fund performance?

A: Since the launch of the Pyxis Alternative Income Fund in January 2012, the Fund benefited from both a generally rising trend in high yield bond prices, as well as short term price dislocations in High Yield Bond exchange-traded funds. In pursuit of our absolute return strategy, the Fund reduced long exposure by adding short term hedges during bouts of market volatility in April and May.

 

Eric Leake   Garrett Waters
Founding Partner, Chief Investment Officer at Anchor Capital   Partner and Chief Executive Officer at Anchor Capital

 

4  |  Annual Report


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Alternative Income Fund

 

Pyxis Alternative Income Fund - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis Alternative Income Fund    Since
Inception *
       Inception Date  

Class A Shares, without sales charge

     -0.10%          01/13/12

Class A Shares, with sales charge

     -5.84%         

Class C Shares, without sales charge

     -0.15%          01/13/12

Class C Shares, with sales charge

     -1.12%         

Class R Shares

     -0.19%          01/13/12

Class Y Shares

 

     0.17%          01/13/12

* Not Annualized.

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

“Without Sales Charge” returns do not include sales charges or contingent deferred sales charges (“CDSC”). “With Sales Charge” returns reflect the maximum sales charge of 5.75% on Class A Shares. The CDSC on Class C Shares is 1.00% within the first year for each purchase; there is no CDSC on Class C Shares thereafter. A 2.00% redemption fee will be charged if Fund shares are redeemed or exchanged within the first two months of purchase. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Class A: 3.05%, Class C: 3.70%, Class R: 3.20% and Class Y: 2.70%.

See Notes to Performance on page 1 for more information.

The Fund’s investment activities involve a significant degree of risk and material losses may occur. The Fund is non-diversified and may invest a significant portion of the portfolio in fewer securities. The Fund invests in ETFs (Exchange-Traded Funds) and is therefore subject to the same risks the funds are invested in as well as entails higher expenses than if invested into an ETF directly. Short sales by a Fund theoretically involve unlimited loss potential since the market price of securities sold short may continually increase. Leveraging may increase the risk of loss, cause fluctuations in the market value of the Fund’s portfolio to have disproportionately large effects or cause the NAV of the Fund generally to decline faster than it would otherwise. Derivatives, such as futures and options, are subject to the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index and may expire worthless.

The Fund may invest in foreign and emerging market securities which involves certain risks such as currency volatility, political and social instability and reduced market liquidity. Investments in high yield securities (commonly known as junk bonds) have a greater risk of default and can be more volatile and less liquid.

Mutual fund investing involves risk including the possible loss of principal.

 

Annual Report  |  5


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Energy and Materials Fund

 

 

Q: How did the Pyxis Energy & Materials Fund perform compared to its benchmark and Morningstar peer group for the period ended September 30, 2012?

A: For the period since inception of December 1, 2011 through September 30, 2012, the Pyxis Energy & Materials Fund returned 10.31% for Class A shares, 9.69% for Class C shares, 10.11% for Class R shares and 10.63% for Class Y shares. The S&P® North American Natural Resources Sector Index, the Fund’s benchmark, returned 0.73% and the Fund’s Morningstar peer group, US OE Aggressive Allocation, returned an average of 11.15% for the same period.

Q: What market conditions impacted the Fund’s performance?

A: During the period, the portfolio was primarily invested in equity securities issued by companies principally engaged in the Energy and Materials industry. These companies were impacted by commodity price fluctuations during the period. Energy related commodities demonstrated strength in the first quarter and much of the second quarter of 2012 before weakening during the summer.

Q: Were there any significant changes to the Fund during the period?

A: As of fiscal year-end, the Fund was closed to new investors and was positioned in cash and cash equivalents. This was done while the advisor, along with the Fund’s board, considered strategic options for the Fund and its investors.

 

6  |  Annual Report


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Energy and Materials Fund

 

Pyxis Energy & Materials Fund - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis Energy and Materials Fund    Since
Inception *
       Inception Date  

Class A Shares, without sales charge

     10.31%          12/01/11

Class A Shares, with sales charge

     3.96%         

Class C Shares, without sales charge

     9.69%          12/01/11

Class C Shares, with sales charge

     8.69%         

Class R Shares

     10.11%          12/01/11

Class Y Shares

 

     10.63%          12/01/11

* Not Annualized.

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

“Without Sales Charge” returns do not include sales charges or contingent deferred sales charges (“CDSC”). “With Sales Charge” returns reflect the maximum sales charge of 5.75% on Class A Shares. The CDSC on Class C Shares is 1.00% within the first year for each purchase; there is no CDSC on Class C Shares thereafter. A 2.00% redemption fee will be charged if Fund shares are redeemed or exchanged within the first two months of purchase. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Class A: 2.25%, Class C: 2.90%, Class R: 2.40% and Class Y: 1.90%.

See Notes to Performance on page 1 for more information.

The Fund’s investment activities involve a significant degree of risk and material losses may occur. The Fund is non-diversified and may be susceptible to economic or regulatory events affecting those industries that the Fund focuses on. The Fund invests in ETFs (Exchange-Traded Funds) and is therefore subject to the same risks the funds are invested in as well as entails higher expenses than if invested into an ETF directly. Short sales by a Fund theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase. Leveraging may increase the risk of loss, cause fluctuations in the market value of the Fund’s portfolio to have disproportionately large effects or cause the NAV of the Fund generally to decline faster than it would otherwise. Derivatives, such as futures and options, are subject to the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index and may expire worthless.

The Fund may invest in foreign and emerging market securities which involves certain risks such as currency volatility, political and social instability and reduced market liquidity. Investments in high yield securities (commonly known as junk bonds) have a greater risk of default and can be more volatile and less liquid. Portfolio Turnover Risk is the risk that a fund’s high portfolio turnover will increase its transaction costs and may result in increased realization of net short-term capital gains and higher taxable distributions.

Mutual fund investing involves risk including the possible loss of principal.

 

Annual Report  |  7


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Trend Following Fund

 

 

Q: How did the Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended September 30, 2012?

A: The Pyxis Trend Following Fund returned -10.19% for Class A shares for the twelve-month period ended September 30, 2012 and -1.80% for Class C shares for the period since inception of February 24, 2012 through September 30, 2012. The Fund’s benchmark, the MS US CE Managed Futures Index returned 0.00% and the Fund’s Morningstar peer group, US OE Managed Futures, returned an average of -8.14% for the twelve-month period ended September 30, 2012.

The Fund was roughly in line with its peer group, trailing the average fund in the category by 0.55%. The Fund was ahead of its peers on YTD and 3-yr basis however, outperforming the category average by 2.84% and 1.28%, respectively.

Q: What market conditions impacted the Fund’s performance?

A: While stocks ended the period higher, it was one marked by a particularly violent ‘reversal day’ type bottom on October 4th, and which then saw several corrections and sharp reversals along the way. Bonds and commodities traded in wide ranges, also making it difficult for all trend following strategies.

Q: What were the primary drivers behind Fund performance?

A: Our trend following models are designed in an effort to participate in rising markets while seeking to avoid (or sell short) declining markets. In seeking the Fund’s objective of long-term capital appreciation consistent with capital appreciation, the overall goal of the strategy is to attempt to post above market returns with below market volatility across a full market cycle. When markets turn up or down quickly however, trend following model take time to “trigger”, and can underperform over the short-term. A good example being the ‘reversal day’ on October 4th, we mentioned above. Once a sustained trend emerges, these methods have the potential to profit in both up and down markets.

Q: Were there any significant changes to the Fund during the period?

A: Yes. In February our prospectus was adjusted, providing the Portfolio Manager more discretion and allowing him or her to both use stop loss orders as well as override signals in the investment model. The goal is to give the Portfolio Manager additional tools to manage risk in market environments such as those experienced during October 2011, as noted above.

Michiel Hurley, CMT

Portfolio Manager at Incline Analytics, LLC

 

8  |  Annual Report


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Trend Following Fund

 

Pyxis Trend Following Fund - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis Trend Following Fund   

One

Year

      

Five

Year

    

Ten

Year

    

Since

 Inception 

       Inception Date  

Class A Shares, without sales charge

     -10.19      n/a      n/a        -1.46%           03/31/09

Class A Shares, with sales charge

     -15.35      n/a      n/a        -3.11%          

Class C Shares, without sales charge

     n/a         n/a      n/a        -1.80%*         02/24/12

Class C Shares, with sales charge

 

     n/a         n/a      n/a        -2.78%*        

* Not Annualized.

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

“Without Sales Charge” returns do not include sales charges or contingent deferred sales charges (“CDSC”). “With Sales Charge” returns reflect the maximum sales charge of 5.75% on Class A Shares. The CDSC on Class C Shares is 1.00% within the first year for each purchase; there is no CDSC on Class C Shares thereafter. A 2.00% redemption fee will be charged if Fund shares are redeemed or exchanged within the first two months of purchase. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Class A: 3.06%, Class C: 3.71%, Class R: 3.21% and Class Y: 2.71%.

See Notes to Performance on page 1 for more information.

The Pyxis Trend Following Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. It may make short sales of securities which involve the risk that losses may exceed the original amount invested. The Fund may invest in foreign and emerging markets which can entail additional social, political and economic risks. It also may invest in smaller companies which may be subject to higher volatility and risk than larger stocks.

The Fund invests in exchange-traded funds and shareholders will bear its share of fees, expenses and risks of the underlying funds. The Model used by the Fund to determine or guide investment decisions may not achieve the objectives of the Fund.

Investments in derivatives, such as futures and options, are subject to the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, and result in losses to the Fund. Leverage may increase the risk of loss and cause fluctuations in the market value of the Fund’s portfolio to have disproportionately large effects or cause the NAV of the Fund generally to decline faster than it would otherwise. Portfolio Turnover Risk is the risk that a fund’s high turnover will increase its transaction costs and may result in increased realization of net short-term capital gains, higher taxable distributions and lower after-tax performance.

Mutual fund investing involves risk including the possible loss of principal.

 

Annual Report  |  9


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Core America Equity Fund

 

 

Q: How did the Pyxis Core America Equity Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended September 30, 2012?

A: For the twelve-month period ended September 30, 2012, the Pyxis Core America Equity Fund returned 26.97% for Class A shares, 25.97% for Class B shares, 25.97% for Class C shares, 26.87% for Class R shares and 27.34% for Class Y shares, net of fees. The Fund’s benchmark, the S&P® 500 Index returned 30.20% and the Fund’s Morningstar peer group, 1,756 US Large Blend funds, returned an average of 27.09% over the same period.

Q: What market conditions impacted the Fund’s performance?

A: In the beginning of the twelve-month period, stocks rallied as EU leaders demonstrated resolve in dealing with the European debt crisis. In addition, U.S. economic data was better than expected throughout the Fall into early 2012. However, by February a more subdued mood took hold as profit expectations slipped and GDP growth slowed. U.S. equity markets went into a “risk off ” stage through mid-year. Starting in July, the market surged for several reasons: 1) optimism over ECB Chairman Draghi’s pledge to do “whatever it takes” to preserve the Euro; 2) economic data started to come in better than expected; and 3) the U.S. Federal Reserve announced its third round of quantitative easing called QE3. The net result for the full year was extremely strong absolute equity performance. Every S&P® 500 sector was up double-digits, and several returned greater than 30%. As U.S. equities soared, the Fund also performed well but modestly lagged the benchmark. Going forward, we feel our fundamental, bottom-up stock selection approach has the potential to pay dividends, if market returns gravitate towards more normalized levels.

Q: What were the primary drivers behind Fund performance?

A: The Fund’s consumer discretionary holdings contributed positively to performance, due to its significant overweight in media holdings. In a backdrop of continued strong advertising spending, the Fund’s holdings in Time Warner, Disney, Omnicom and Comcast drove the Fund’s media outperformance. Other important contributions came from holdings of Amgen, Express Scripts and Perkin Elmer within healthcare. We view these companies as “best of breed” within biotechnology, pharmacy benefit manager and life science tool segments, respectively. Overweighting financials also helped performance, with key contributions from holdings of outperforming asset managers, Invesco and Ameriprise. On the other hand, the Fund’s underweight in telecommunications — which performed well — detracted from its returns. In addition, stock selection within consumer staples, industrials and materials sectors detracted from returns. Holdings of Kraft and Archer Daniels Midland (ADM) dragged on returns in consumer staples, with ADM being impacted by the U.S. drought and its impact on the corn crop. In materials, Allegheny Technologies pressured relative performance, as many investors became concerned about an oversupply of stainless steel and titanium.

Q: Were there any significant changes in the Fund during the period?

A: Over the course of the twelve-month period we added more assets to our highest-conviction holdings, increasing the number of large overweights (positions greater-than 1.5% over the benchmark) and modestly reducing the number of overall holdings in the portfolio. We began the year with 98 holdings and ended the year with 75. At September 30th, the healthcare and technology sectors were the Fund’s largest overweights and with underweights in consumer staples and telecommunications (driven by high relative valuations in these sectors).

Over the course of the year we added some technology exposure to the portfolio given attractive valuations. We established new positions in Qualcomm, Analog Devices, and Google. Each of these technology market leaders has generated strong free cash flow with a visible earnings outlook, and currently boasts a strong balance sheet. We increased the Fund’s healthcare overweight with new holdings in Agilent, Covidien and Express Scripts among others. We also meaningfully increased the Fund’s media exposure with new holdings in CBS and Comcast.

At the same time, we lightened exposure to the financials sector, and the Fund’s financials sector overweight (vs. the benchmark) declined to just over 1% at September 30th. We eliminated positions in State Street Corp, Bank of America, JP Morgan and several insurance holdings, including Chubb, Marsh & McLennan, MetLife and The Hartford. We believe the optimal approach in financials is to have “best of breed” companies in a number of industry segments. Thus, we added to the Fund’s position in AIG, a leading P&C underwriter which has been transforming its culture, selling assets and buying back its stock. We also initiated positions in asset manager, Invesco, and Wells Fargo in the banking/mortgage industry.

 

Stephen V. Gelhaus    Paul C. Reinhardt
Senior Vice President at GEAM    Senior Vice President at GEAM

 

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Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Core America Equity Fund

 

Pyxis Core America Equity Fund - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis Core America Equity Fund    One
Year
       Five
Year
       Ten
Year
       Since
Inception
       Inception Date  

Class A Shares, without sales charge

     26.97        0.59        7.25        8.01%          09/08/93

Class A Shares, with sales charge

     19.63        -0.59        6.61        7.67%         

Class B Shares, without sales charge

     25.97        -0.16        6.60        7.71%          09/08/93

Class B Shares, with sales charge

     21.97        -0.16        6.60        7.71%         

Class C Shares, without sales charge

     25.97        -0.16        6.46        2.70%          09/30/99

Class C Shares, with sales charge

     24.97        -0.16        6.46        2.70%         

Class R Shares

     26.87        n/a           n/a           2.34%          01/29/08

Class Y Shares

 

     27.34        0.85        7.60        5.35%          01/05/98

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

“Without Sales Charge” returns do not include sales charges or contingent deferred sales charges (“CDSC”). “With Sales Charge” returns reflect the maximum sales charge of 5.75% on Class A Shares. The maximum CDSC on Class B Shares is 4.00%. The CDSC on Class C Shares is 1.00% within the first year for each purchase; there is no CDSC on Class C Shares thereafter. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Class A: 1.14%, Class B: 1.89%, Class C: 1.89%, Class R: 1.39% and Class Y: 0.89%.

See Notes to Performance on page 1 for more information.

The Fund invests in value stocks which involve the risk of investing in securities that are undervalued and may not realize its full potential. To a lesser extent the Fund may invest in foreign securities which may cause more volatility and less liquidity due to currency changes, political instability and accounting differences. Investing in derivatives may involve more volatility and less liquidity because of the risk that an investment may not correlate to the performance of the underlying securities.

Mutual fund investing involves risk including the possible loss of principal.

 

Annual Report  |  11


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Dividend Equity Fund

 

 

Q: How did the Fund perform compared to its benchmarks and Morningstar peer group for the period since inception through September 30, 2012?

A: The Pyxis Dividend Equity Fund returned 21.16% for Class A shares for the period November 24, 2011 through September 30, 2012, 14.89% for Class C shares for the period November 15, 2011 through September 30, 2012 and 15.90% for Class Y shares for the period November 14, 2011 through September 30, 2012. The S&P® 500 Index and the Russell 1000® Value Index, the Fund’s benchmarks, returned 17.36% and 17.47%, respectively, for the period November 1, 2012 through September 30, 2012. The Fund’s Morningstar peer group, US OE Large Value Blend, returned an average of 14.29% over the same period.

Q: What market conditions impacted the Fund’s performance?

A: The Fund launched in mid-November 2011 and came after a brief period where dividend paying stocks strongly outperformed the general markets. Many investors realized gains in dividend paying stocks at the end of 2011 and continued into the New Year. Investors also became very risk tolerant during the first three months of 2012 as economic data exceeded the general consensus estimates. As the year progressed, investors rotated back and forth from a “risk on” to a “risk off” mentality. By September, investors turned their eyes toward the Presidential election and the possible end of the Bush-era tax cuts. The portfolio remained conservatively invested during the year which resulted in outperformance during the periods when investors become defensive and underperformed when they were risk tolerant.

Q: What were the primary drivers behind Fund performance?

A: Performance was driven by strong capital gains in several securities that represent multiple sectors of the U.S. economy. Performance also benefited from increases in quarterly dividend payments by nearly every holding in the portfolio. Financial sector holdings were driven by a strong performance from the four banks that are held in the portfolio. Wells Fargo (+40%) and US Bank (+37%) led the way as improved customer balance sheets, significant dividend increases, and a lack of exposure to Europe drew investor attention. Several cyclical names also drove the portfolio’s performance as the U.S. economy continued to grow at a slow, but steady, pace. Home Depot (+61%), General Electric (+46%), Packaging Corporation of American (+44%), and Worthington Industries (+30%) each benefited from rising revenue and cost containment.

The portfolio also benefited from a lower weighting in energy stocks as the sector trailed the S&P® 500 for the entire year. Surprisingly, performance was boosted by a 15% weighting in European stocks even with the ongoing financial crisis in Greece and several other countries.

During the year, 35 out of the 36 portfolio holdings increased their quarterly dividends. Companies are flush with cash and continued strong free cash flow allowed them to increase their distributions by an average of 29% during the past twelve months.

The portfolio’s performance was hampered by the more defensive holdings in the portfolio and included names primarily from the utilities, health care, and consumer staples sectors. Unilever, Proctor & Gamble, and Kellogg each saw their profit margins contract during the year as costs continued to rise and price increases at the consumer level failed to stick. Investors’ increased appetite for risk also hurt performance. The portfolio did not hold any lower-quality names or many of the deep cyclical stocks that investors preferred during certain periods of the year. Performance also suffered from a below average weighting in bank stocks.

Q: Were there any significant changes to the Fund during the period?

A: The various share classes of the Pyxis Dividend Equity Fund launched in November 2011.

The portfolio manager continues to focus on the fundamentals of the U.S. economy and the current position of the market cycle. In an effort to remain defensive based on the near-term outlook for the economy, the portfolio has increased its average market capitalization and credit quality. The allocation to the energy sector was increased during the year but still remains below the benchmark’s weighting in oil and gas.

With an uncertain future for taxes and growth in the U.S. economy, the portfolio remains conservatively invested with the expectation that a mild recession may occur in 2013. The emphasis will continue to be on securities that provide a 3-5% current yield with the expectation that quarterly dividends will be increased on an annual basis. It is important to note, however, that there is no guarantee that companies will continue to pay or increase its dividends. As the portfolio is not restricted by market capitalization, style, or domicile, future holdings may include small to large- capitalization names that are based in the U.S. or abroad.

Robert Bugg

Brookmont Capital Management

 

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Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Dividend Equity Fund

 

Pyxis Dividend Equity Fund - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis Dividend Equity Fund    Since
Inception *
     Inception Date  

Class A Shares, without sales charge

     21.16%        11/24/11

Class A Shares, with sales charge

     14.20%       

Class C Shares, without sales charge

     14.89%        11/15/11

Class C Shares, with sales charge

     13.89%       

Class Y Shares

 

     15.90%        11/14/11

* Not Annualized.

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

“Without Sales Charge” returns do not include sales charges or contingent deferred sales charges (“CDSC”). “With Sales Charge” returns reflect the maximum sales charge of 5.75% on Class A Shares. The CDSC on Class C Shares is 1.00% within the first year for each purchase; there is no CDSC on Class C Shares thereafter. A 2.00% redemption fee will be charged if Fund shares are redeemed or exchanged within the first two months of purchase. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Class A: 2.39%, Class C: 3.04%, Class R: 2.54% and Class Y: 2.04%.

See Notes to Performance on page 1 for more information.

The Fund is non-diversified, meaning that it may concentrate its assets in fewer individual holdings than a diversified fund. Investing in derivatives may be subject to the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index. Exchange-traded funds (ETFs) that the Fund may invest in are subject to market, economic and business risks that may cause their prices to fluctuate. Shareholders will pay higher expenses than would be the case if making direct investments in the underlying ETFs.

An investment in high yield securities or unrated securities (commonly known as junk bonds) are more likely to default than high rated securities. Investments in securities of non-U.S. issuers, particularly securities of emerging market issuers, involve certain risks not involved in domestic investments (for example, expropriation or political or economic instability). Small and mid-cap securities involve certain risks such as higher volatility, lower trading volume, fewer business lines and lack of public information. The Fund invests in dividend-paying companies and there is no guarantee that a company will increase or continue to pay dividends.

Mutual fund investing involves risk including the possible loss of principal.

 

Annual Report  |  13


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Premier Growth Equity Fund

 

 

Q: How did the Pyxis Premier Growth Equity Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended September 30, 2012?

A: For the twelve-month period ended September 30, 2012, the Pyxis Premier Growth Equity Fund returned 34.76% for Class A shares, 33.69% for Class B shares, 33.77% for Class C shares, 34.44% for Class R shares and 35.05% for Class Y shares, net of fees. The Fund’s benchmarks, the S&P® 500 Index and the Russell 1000 Growth Index returned 30.20% and 29.19%, respectively, and the Fund’s Morningstar peer group, 386 US Large Growth funds, returned an average of 27.22% over the same period.

Q: What market conditions impacted the Fund’s performance?

A: In the beginning of the year, in the 4th quarter of 2011, the European Central Bank’s LTRO and other stimulus programs in the global economy reassured investors that the tail risk of a European Union break-up had diminished. Rising equity prices were underpinned by incremental progress among European sovereigns and better U.S. economic data (e.g., housing stabilization and positive credit trends). In this environment, large-cap growth stocks generally outperformed the value stocks. Tech stocks rallied and banks rebounded amid the global stimulus. Every S&P® 500 sector was up double-digits, led by financials as banks rebounded from poor performance in the previous year ended September 30, 2011. In general, the more defensive sectors (e.g., utilities, staples) lagged. As correlation (i.e., the extent to which stocks traded in lock-step with the indices — and each other) came down, we believe the environment improved for bottom-up stock picking.

Q: What stocks and sectors significantly affected the Fund’s performance?

A: The Fund benefited from its pro-cyclical tilt during the year’s market rally, enjoying contributions both from overweights in the technology and consumer discretionary sectors, and underweights in the classically defensive consumer staples and utilities sectors. Stock selection in the technology sector contributed the most to the Fund’s outperformance, with substantial gains in EBay, Visa and Apple more than offsetting relative weakness in Baidu and Western Union. In sometimes skittish markets, the media industry offered both defensive and growth characteristics during the 12-month period, making this sector a winner along with holdings like Liberty Global and Discovery Communications. Outperformance in the Fund’s healthcare holdings was driven by rallies in Express Scripts, Gilead and Amgen. Express Scripts demonstrated synergies from its Medco acquisition, and continued its outlook for growth in generic drugs while the biotechnology industry delivered growth and visibility via exciting pipeline innovations. Another inventive R&D company was Monsanto in agricultural biotechnology.

In an otherwise strong period of performance, underweighting the financial sector as it outperformed — and banks in particular — weighed on returns. Strength in State Street was not enough to offset this lack of bank exposure, and the relative underperformance in derivative exchange CME Group and Goldman Sachs. Bed Bath & Beyond — a very well managed specialty retailer — took a breather this year, while holdings in PepsiCo and UPS lagged against a backdrop of slowing emerging market growth and global growth concerns.

Q: Were there any significant changes in the Fund during the period?

A: Changes to the Fund were modest during the 12-month period. We ended the year with 36 stocks in the Fund, roughly flat with the start of the year. At September 30, 2012, technology remained the largest sector in the Fund. We believe technology has several things going for it: financial strength (large cash balances and free cash flow generation), global diversification (over 50% of the tech sector revenue is outside the U.S.), product cycle growth (e.g. wireless data), and attractive valuation. The Fund continued to have an underweight in utilities and consumer staples at the end of the 12-month period. We continue to focus on what we believe are financially strong companies with great management teams at attractive valuations. We favor companies with innovative products and services rather than business models tied to GDP growth. In a slow growth world, we believe the Fund’s collection of companies with the potential for above-average growth have the opportunity to do well over the long term.

David B. Carlson

Chief Investment Officer - U.S. Equities at GEAM

 

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Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Premier Growth Equity Fund

 

Pyxis Premier Growth Equity Fund - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis Premier Growth Equity Fund    One
Year
       Five
Year
       Ten
Year
       Since
Inception
       Inception Date  

Class A Shares, without sales charge

     34.76        3.10        7.36        7.14%          12/31/96

Class A Shares, with sales charge

     27.03        1.88        6.72        6.73%         

Class B Shares, without sales charge

     33.69        2.33        6.88        6.83%          12/31/96

Class B Shares, with sales charge

     29.69        2.33        6.88        6.83%         

Class C Shares, without sales charge

     33.77        2.33        6.57        2.61%          09/30/99

Class C Shares, with sales charge

     32.77        2.33        6.57        2.61%         

Class R Shares

     34.44        n/a           n/a           5.27%          01/29/08

Class Y Shares

 

     35.05        3.35        7.63        7.40%          12/31/96

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

“Without Sales Charge” returns do not include sales charges or contingent deferred sales charges (“CDSC”). “With Sales Charge” returns reflect the maximum sales charge of 5.75% on Class A Shares. The maximum CDSC on Class B Shares is 4.00%. The CDSC on Class C Shares is 1.00% within the first year for each purchase; there is no CDSC on Class C Shares thereafter. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Class A: 1.11%, Class B: 1.86%, Class C: 1.86%, Class R: 1.36% and Class Y: 0.86%.

See Notes to Performance on page 1 for more information.

The Fund invests in growth stocks that may be more volatile because they are more sensitive to market conditions. The Fund invests in mid-cap companies which may entail greater risks and less liquidity due to narrower product lines and limited resources than larger companies. The Fund may concentrate its investments in a limited number of issuers which will have a greater impact on the Fund’s value. To a lesser extent the Fund may invest in foreign securities which may cause more volatility and less liquidity due to currency changes, political instability and accounting differences. Investing in derivatives may involve more volatility and less liquidity because of the risk that an investment may not correlate to the performance of the underlying securities.

Mutual fund investing involves risk including the possible loss of principal.

 

Annual Report  |  15


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Small-Cap Equity Fund

 

 

Q: How did the Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended September 30, 2012?

A: For the twelve-month period ended September 30, 2012, the Pyxis Small Cap-Equity Fund/Palisade returned 27.91% for Class A shares, 27.12% for Class B shares, 26.89% for Class C shares, 27.93% for Class R shares and 28.26% for Class Y shares. The Russell 2000 Index, the Fund’s benchmark, returned 31.91% and the Fund’s Morningstar peer group, US OE Small Blend, returned an average of 29.94% for the same period.

Q: What market conditions impacted the Fund’s performance?

A: The last quarter of 2011 and the first quarter of 2012 produced strong double-digit returns. Despite concerns of the sovereign debt crisis in the euro-zone, U.S. equities remained strong on the back of positive domestic data, highlighted by better unemployment and strong housing starts. In addition, the waning of negative earnings estimate revisions and an accommodating monetary policy further bolstered equity results. Within the small-cap space, investors embraced risk, purchasing higher beta (2) stocks, as well as unprofitable companies with lower market capitalizations.

In the second quarter of 2012, equity markets could not stay positive and retreated into negative territory on uncertainty in Europe and a slowdown in China. More importantly, the U.S. economy slowed, with the ISM Manufacturing Index falling three months in a row and dropping below 50 for the first time since the U.S. recession ended in the second quarter of 2009. Within the small cap universe, companies with non-U.S. based demand were hit the hardest. With uncertainty in Europe now spreading to Asia, companies with foreign exposure underperformed, as illustrated by the fact that both Information Technology and Materials, which are ranked first and second in foreign sales by sector, were down by more than 7% for the quarter. Non-earning, loss-making companies outperformed during the quarter, but this came mainly from Biotechnology stocks, which are not typically owned in this portfolio.

The third quarter of 2012 witnessed a rebound in the equity market. Across the globe, policy-makers added liquidity. In September, the U.S. instituted another round of Quantitative Easing (QE3), with the Fed indicating that they would buy $40 billion of mortgage debt each month for as long as it takes to get the economy to grow on its own. The ECB also assured the markets that they would keep liquidity flowing, which took some pressure off the EU debt crisis in the short run. Within the small-cap universe, stocks with the highest betas and lowest price-to-earnings ratios(3) outperformed.

Q: What were the primary drivers behind Fund performance?

A: The Fund benefited from relative returns in the Information Technology and Industrials sectors. Notably within Information Technology, our positions in Global Cash Access Holdings (+214%) and SS&C Technologies (+76%) bolstered results, while in Industrials, RSC Holdings (+218%) was acquired by United Rentals on April 30, 2012. Outperformance in the Financials sector was attributable to our exposure to the strongly performing REITs(4) industry. Underweights to the relatively weak Utilities and Consumer Staples sectors and an overweight to the strongly performing Materials sector enhanced results.

Partially offsetting these positive results, the Fund was hampered by underperformance in the Consumer Discretionary sector where our position in Deckers Outdoor Corp. (-61%) disappointed. We also lagged the index return in the Health Care sector, held back by an underweight and underperformance in the strongly performing Biotechnology industry.

Q: Were there any significant changes in the Fund during the period?

A: In March 2012, Marc Shapiro was promoted to Senior Portfolio Manager of the Adviser’s Small Cap Core Equity strategy. Mr. Shapiro had served as the strategy’s Associate Portfolio Manager since October of 2006 and had been a Senior Vice President of Research for the Small Cap Core Equity strategy since joining the Adviser in February of 2004. Mr. Shapiro replaced Senior Portfolio Manager Jeffrey Schwartz, who had resigned to pursue another business opportunity in asset management.

Additionally, Kyle M. Kavanagh was promoted to Associate Portfolio Manager of the Small Cap Core Equity strategy, and will also remain a Senior Vice President of Research. Mr. Kavanagh has worked with the Small Cap Core Equity team in a senior research role since April of 2001.

In August 2012, the Adviser hired Garo Norian as Senior Vice President of Research. Mr. Norian’s current responsibilities include generating investment ideas and maintaining research coverage for the Firm’s Institutional Small Cap Core Equity strategy specializing in the Industrials and Material sectors. Prior to joining the Adviser, Mr. Norian was at BlackRock where he was an Equity Analyst, supporting both the mid-cap and small-cap investment teams. Prior to BlackRock, Mr. Norian worked at State Street Research and Management, and at J.P. Morgan. Mr. Norian is a CFA Charterholder. He received his M.B.A. in Investment Management and Accounting from Columbia Business School and his B.A. in Economics and East Asian Studies from Stanford University.

Monique Kosse, Senior Vice President of Research continues specializing in the Health Care and Utilities sectors.

Despite strong relative and absolute returns, the third quarter of 2012 was challenging as the flow of macro data raised concerns, and stocks were extremely volatile. Although investors remain concerned about a global economic slowdown, led by Europe and China, the U.S. equity markets proved to be resilient due to monetary efforts in the United States and Europe. The volatility is likely to persist as we approach the U.S. election and the “Fiscal Cliff ”. Nevertheless, we remain focused on our individual companies and believe that, with our intense focus on stock selection, we have the potential to outperform.

The continued volatility has resulted in large shifts among the sectors, as witnessed in the Materials and Energy sectors, which went from among the worst performing sectors in the second quarter of 2012 to the best performing sectors in the third quarter of 2012. With this in mind, we continue to stay mostly in-line with the major Russell 2000® sectors, with the exception of our overweight in the Consumer Discretionary sector, where we seek mostly to stay in line with companies that fit our parameters. Our underweight exposure to the Financials sector increased slightly during the three-month period, because the sector received a boost from QE3 at the end of the quarter. We will be looking to reduce our underweight exposure by the end of the year. We will also remain underweight several of the smaller sectors within the Russell 2000®, like Consumer Staples and Utilities, as we do not find names that fit our process.

 

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Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Small-Cap Equity Fund

 

Our portfolio companies remain conservatively financed. We believe this conservatism will possibly provide less volatility in the unlikely event of a prolonged business downturn. We aim to buy and own stocks with very specific characteristics, with the potential for increasing net income, increasing return on invested capital, increasing return on equity, solid and improving free cash flow, and low levels of debt. This consistency has historically achieved superior relative returns in the past and we believe this provides the best opportunities as we navigate our way through the constant ups and downs in the small-cap core space.

 

Marc H. Shapiro    Dennison T. Veru
Senior Portfolio Manager at Palisade    Executive Vice-President and Chief Investment Officer at Palisade

 

 

 

 

1. Views reflect that of Palisade Capital Management, LLC.

2. Beta - the covariance of manager and benchmark divided by the variance of the benchmark. Beta is a measure of systematic risk, or the sensitivity of a manager to movements in the benchmark. A beta of 1 implies that you can expect the movement of a manager return series to match that of the benchmark used to measure beta.

3. The price-to-earnings ratio, or P/E ratio, is an equity valuation measure defined as market price per share divided by annual earnings per share.

4. A REIT is a company that owns, and in most cases, operates income-producing real estate. It is a type of an investment.

 

Annual Report  |  17


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Small-Cap Equity Fund

 

 

Pyxis Small Cap-Equity Fund - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis Small-Cap Equity Fund  

 

One
Year

      

 

Five
Year

      

 

Ten
Year

      

 

Since
Inception

       Inception Date  

Class A Shares, without sales charge

    27.91        2.32        7.95        9.16%          09/30/98

Class A Shares, with sales charge

    20.60        1.12        7.31        8.70%         

Class B Shares, without sales charge

    27.12        1.56        7.48        8.81%          09/30/98

Class B Shares, with sales charge

    23.12        1.56        7.48        8.81%         

Class C Shares, without sales charge

    26.89        1.55        7.14        7.40%          09/30/99

Class C Shares, with sales charge

    25.89        1.55        7.14        7.40%         

Class R Shares

    27.93        n/a           n/a           4.95%          01/29/08

Class Y Shares

 

    28.26        2.60        8.24        9.45%          09/30/98

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

“Without Sales Charge” returns do not include sales charges or contingent deferred sales charges (“CDSC”). “With Sales Charge” returns reflect the maximum sales charge of 5.75% on Class A Shares. The maximum CDSC on Class B Shares is 4.00%. The CDSC on Class C Shares is 1.00% within the first year for each purchase; there is no CDSC on Class C Shares thereafter. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Class A: 1.93%, Class B: 2.68%, Class C: 2.68%, Class R: 2:18% and Class Y: 1.68%.

See Notes to Performance on page 1 for more information.

The Fund invests in small-capitalization companies which may entail greater risks and less liquidity due to limited product lines and fewer resources than larger companies. The Fund uses a multi-sub-adviser investment strategy and the performance of the fund may be determined by the ability of the Adviser to allocate assets among sub-advisers. To a lesser extent the Fund may invest in foreign securities which may cause more volatility and less liquidity due to currency changes, political instability and accounting differences. Investing in derivatives may involve more volatility and less liquidity because of the risk that an investment may not correlate to the performance of the underlying securities.

Mutual fund investing involves risk including the possible loss of principal.

 

18  |  Annual Report


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Global Equity Fund

 

Q: How did the Pyxis Global Equity Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended September 30, 2012?

A: For the twelve month period ended September 30, 2012, the Pyxis Global Equity Fund returned 19.94% for Class A shares, 19.12% for Class B shares, 19.02% for Class C shares, 19.85% for Class R shares and 19.57% for Class Y shares, net of fees. The Fund’s benchmark, the MSCI World Index returned 21.59% and the Fund’s Morningstar peer group, US OE World Stock, returned an average of 19.64% over the same period.

Q: What market conditions impacted the Fund’s performance?

A: Several regional factors added support to a strong absolute performance, continuing the influence of macro issues on market performance evident over the last few years. Strong earnings in the U.S. contributed to strong returns despite an economy that was showing anemic growth and persistently high inflation. Bottom-up fundamentals also supported the U.K. and several segments of the broader European markets despite recession and periods of grave concern regarding the outlook for Europe’s weaker countries, especially Spain. But significant actions by the European Central Bank, including long-term cheap financing for banks and a “whatever it takes” attitude tempered only by an insistence on conditionality, gave markets optimism that solutions to the debt crisis were at hand. Although China caused weakness across the emerging market, avoidance of a hard landing also limited the downside.

Q: What were the primary drivers behind the Fund’s performance?

A: Stock selection made a significant, positive contribution in IT, materials, staples and telecom services and negative contributions in consumer discretionary, industrials and financials. In IT, notable holdings included Equinix (internet services), Hexagon (measurements) and Samsung Electronics; in materials, Monsanto (agricultural chemicals); in staples, Diageo (beverages) and in telecom services American Tower (mobile equipment). Among the negative contributors, consumer discretionary saw weakness in Suzuki Motors (Japan), Arcos Dorados (Latin American restaurants) and Eutelsat (satellite communications); financials in Standard Chartered, US Bancorp, BNP and Deutsche Bank; and for industrials, in GE and Lixil Group (Japan, home improvements).

Regionally, the Fund benefited from an underweight and strong stock selection in Japan and stock selection in all other regions except Emerging Markets, where economic weakness saw investors underweight the region.

Q: Were there any significant changes in the Fund during the period?

A: Towards the end of the period under review, a decision was taken to adopt a more concentrated approach to portfolio construction for the Fund, with the aim of improving risk-adjusted returns. As a result of this strategic move, the number of holdings in the portfolio was substantially reduced. The resultant portfolio is focused primarily on a select group of high quality global companies, with market-leading products in growing markets, and with strong financial characteristics to support that growth. We believe that such companies have the market positioning and geographic strength to be able to prosper, despite the uncertain global economic environment. Despite a reduced number of holdings, the portfolio remains well diversified at the sector and regional level, and seeks to remain within the defined risk parameters for the portfolio.

Esther Baroudy

Vice President at GEAM

 

Annual Report  |  19


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Global Equity Fund

 

 

Pyxis Global Equity Fund - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis Global Equity Fund  

 

One
Year

      

 

Five
Year

      

 

Ten
Year

      

 

Since
Inception

       Inception Date  

Class A Shares, without sales charge

    19.94        -5.02        6.60        5.62%          02/22/93

Class A Shares, with sales charge

    13.05        -6.14        5.97        5.30%         

Class B Shares, without sales charge

    19.12        -5.71        6.12        4.48%          12/22/93

Class B Shares, with sales charge

    15.12        -5.71        6.12        4.48%         

Class C Shares, without sales charge

    19.02        -5.72        5.89        1.27%          09/30/99

Class C Shares, with sales charge

    18.02        -5.72        5.89        1.27%         

Class R Shares

    19.85        n/a           n/a           -3.66%          01/29/08

Class Y Shares

 

    19.57        -4.78        6.86        5.28%          11/29/93

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

“Without Sales Charge” returns do not include sales charges or contingent deferred sales charges (“CDSC”). “With Sales Charge” returns reflect the maximum sales charge of 5.75% on Class A Shares. The maximum CDSC on Class B Shares is 4.00%. The CDSC on Class C Shares is 1.00% within the first year for each purchase; there is no CDSC on Class C Shares thereafter. A 2.00% redemption fee will be charged if Fund shares are redeemed or exchanged within the first three months of purchase. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Class A: 1.73%, Class B: 2.48%, Class C: 2.48%, Class R: 1.98% and Class Y: 1.48%.

See Notes to Performance on page 1 for more information.

The Fund invests in foreign and emerging market securities which include risks relating to social and political stability, market illiquidity and currency volatility. The Fund invests in small-capitalization companies which may entail greater risks and less liquidity due to limited product lines and fewer resources than larger companies. Investing in derivatives may involve more volatility and less liquidity because of the risk that an investment may not correlate to the performance of the underlying securities.

Mutual fund investing involves risk including the possible loss of principal.

 

20  |  Annual Report


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis International Equity Fund

 

Q: How did the Pyxis International Equity Fund perform compared to its benchmark and Morningstar peer group for the twelvemonth period ended September 30, 2012?

A: For the twelve month period ended September 30, 2012, the Pyxis International Equity Fund returned 16.37% for Class A shares, 15.49% for Class B shares, 15.66% for Class C shares, 16.24% for Class R shares and 16.76% for Class Y shares, net of fees. The Fund’s benchmark, the MSCI EAFE Index returned 13.75% and the Fund’s Morningstar peer group, US OE Foreign Large Blend, returned an average of 16.00% over the same period.

Q: What market conditions impacted the Fund’s performance?

A: Starting in the final quarter of 2011, the first signs of material progress in solving Europe’s debt crisis appeared, persisting, with brief exceptions, throughout the entire twelve month period. The progress revolved around political acceptance of greater fiscal integration and the development of more appropriate and effective financial institutions including the European Stability Mechanism (ESM). In addition, the European Central Bank, under the new leadership of Mario Draghi, played a more active role introducing “LTRO” (Long-term refinancing operations) for banks while adopting a “whatever it takes” attitude tempered only by an insistence on conditionality. Given the steady deterioration of Spain and its banking system this more expansive role was both welcome and essential. Meanwhile China continued to avoid a hard landing although its economy slowed with a profound impact on other markets around the world, many of which has been acting as suppliers and customers to the world’s second-largest economy.

Q: What were the primary drivers behind Fund performance?

A: Stock selection was positive in all sectors but most notably in information technology. Strong growth in segments such as smartphones, plus new developments in integrated circuits and enterprise software led to significant contributions to the Fund’s returns from Samsung Electronics, Taiwan Semiconductor, Hexagon and SAP. Sector allocation was mainly positive except in the IT sector which despite our success was the second-worst performing sector after utilities.

Regionally, the Fund benefited significantly from an underweight and stock selection in Japan and from stock selection in Europe, the U.K. and the Emerging Markets.

Q: Were there any significant changes to the Fund during the period?

A: The weight in healthcare was increased with new holdings Astellas (Japan) and CSL (Australia) plus an additional weight in Fresenius SE. Consumer staples holdings increased through additions to Diageo (UK) and AB Inbev (Belgium). In the energy sector trims of holdings in Petrobras (Brazil) and Suncor (Canada) were replaced through purchases of SubSea 7 (Norway), BG Group and ENI (Italy). In the financials sector positions in Santander (Spain), ICICI (India) and Bank of China HK were sold and replaced by Deutsche Bank, AIA Hong Kong, ING and Daito Trust and for autos in the consumer discretionary sector we added to the Fund’s position in Toyota while selling Suzuki Motor.

Overall, the general tenor of the portfolio did not change, positioned for sub-par growth in a sub-par inflationary world.

 

Ralph R. Layman    Jonathan L. Passmore    Michael J. Solecki
President & Chief Investment Officer - Public        Senior Vice President at GEAM    Chief Investment Officer - International Equities at
Equities at GEAM       GEAM

 

Annual Report  |  21


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis International Equity Fund

 

 

Pyxis International Equity Fund - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis International Equity Fund  

 

One
Year

      

 

Five
Year

      

 

Ten
Year

      

 

Since
Inception

       Inception Date  

Class A Shares, without sales charge

    16.37        -7.01        6.71        3.43%          03/02/94

Class A Shares, with sales charge

    9.64        -8.11        6.08        3.10%         

Class B Shares, without sales charge

    15.49        -7.71        6.21        3.18%          03/02/94

Class B Shares, with sales charge

    11.49        -7.71        6.21        3.18%         

Class C Shares, without sales charge

    15.66        -7.65        5.98        0.42%          09/30/99

Class C Shares, with sales charge

    14.66        -7.65        5.98        0.42%         

Class R Shares

    16.24        n/a           n/a           -6.12%          01/29/08

Class Y Shares

 

    16.76        -6.77        6.98        3.71%          03/02/94

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

“Without Sales Charge” returns do not include sales charges or contingent deferred sales charges (“CDSC”). “With Sales Charge” returns reflect the maximum sales charge of 5.75% on Class A Shares. The maximum CDSC on Class B Shares is 4.00%. The CDSC on Class C Shares is 1.00% within the first year for each purchase; there is no CDSC on Class C Shares thereafter. A 2.00% redemption fee will be charged if Fund shares are redeemed or exchanged within the first three months of purchase. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Class A: 1.69%, Class B: 2.44%, Class C: 2.44%, Class R: 1.94% and Class Y: 1.44%.

See Notes to Performance on page 1 for more information.

The Fund invests in foreign and emerging market securities which include risks relating to social and political stability, market illiquidity and currency volatility. The Fund invests in growth stocks that may be more volatile because they are more sensitive to market conditions and also mid-capitalization companies which may entail greater risks and less liquidity due to limited product lines and fewer resources than larger companies. Investing in derivatives may involve more volatility and less liquidity because of the risk that an investment may not correlate to the performance of the underlying securities.

Mutual fund investing involves risk including the possible loss of principal.

 

22  |  Annual Report


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Total Return Fund

 

Q. How did the Pyxis Total Return Fund perform compared to its benchmarks and Morningstar peer group for the twelve-month period ended September 30, 2012?

A: For the twelve-month period ended September 30, 2012, the Pyxis Total Return Fund returned 17.01% for Class A shares, 16.12% for Class B shares, 16.17% for Class C shares, 16.68% for Class R shares and 17.36% for Class Y shares, net of fees. The Fund’s broad based benchmarks, the S&P® 500 Index and the Barclays U.S. Aggregate Bond Index returned 30.17% and 5.16%, respectively. The Fund’s Morningstar peer group, U.S. moderate allocation funds, returned an average of 17.93% over the same period.

Q. What market conditions impacted the Fund’s performance?

A: Fund performance was positively impacted by the global equity markets rally during the first six-months of the period as stronger than forecast growth in consumer sentiment and spending bolstered optimism in the economy. Higher beta(1) assets outperformed as the equity rally broadened and risk appetite grew. Global economic pessimism faded and market volatility declined. Corporate balance sheets were relatively strong and profit margins were higher than many anticipated. Additionally, price-to-earnings ratios(2) continued to stabilize and we saw solid earnings growth. The U.S. economy was resilient and experienced moderate growth during this period. Employment data improved and auto sales continued to normalize. Additionally, bank capital ratios strengthened and loan volumes increased.

Global equity markets were hit hard in May 2012 on accelerating concerns about sovereign debt and global growth before recovering partially in June as political efforts, central bank actions, and attractive valuations reasserted their influence. Politics played a large part in determining sentiment with the Presidential election in France and the general election in Greece all adding to temporary uncertainty. European fears also reignited as the banking system stress and deteriorating economic data weighed on the market. The EU summit in late June promised and then delivered some reason for optimism. Potential direct funding of banks eliminating the sovereign pass-through, establishment of an EU-wide supervisory body, ESM support for sovereign debt, and a new growth package helped push markets higher at the end of the quarter. Central banks, including China, started easing policy in response to a steadily weakening economic picture and growing concern about second quarter earnings.

The U.S. economy was still expanding but with signs of slowing growth. While housing statistics continued to show an encouraging trend and U.S. consumer-related data was positive, manufacturing numbers were more worrisome and employment continued to be weak. Inflation pressures remained subdued as oil prices fell. This preponderance of weaker economic signals caused the Federal Reserve to revise its forecasts for U.S. GDP growth and, as a result, led the markets to hope for another round of quantitative easing to boost the economy again.

Fears about Eurozone instability and U.S. fiscal uncertainty, coupled with memories of summer pull-backs in 2010 and 2011, fueled investor caution going into the summer. Low expectations created a springboard for a market advance as the worst of investor fears failed to materialize. Additionally, new ECB and Federal Reserve stimulus measures in September helped quarterly gains as many investors bet that central-bank asset purchases would bolster investment returns.

Another catalyst for the rally in global equity markets toward the end of this period came in July with the commitment from European Central Bank President Mario Draghi who announced in early August the ECB “will do whatever it takes to preserve the Euro.” In early September, he unveiled the ECB’s plan to buy unlimited amounts of debt with maturities of one to three years of struggling Eurozone countries in what it called Outright Monetary Transactions (OMT). The German courts allowed European Stability Mechanism (ESM) ratification with light conditionality. There was positive momentum on the European banking union under an ambitious timeline. Attention turned toward a Spanish request for bailout. However, skepticism persisted amid the Spanish austerity riots.

The U.S. Federal Reserve announced a third round of quantitative easing (QE3) whereby it will purchase $40 billion of mortgage-backed securities per month without a defined limit or stated end date. The Fed also stated it believes the federal funds rate should remain low (0-0.25%) through mid-2015. Without specifying an unemployment target, the Federal Open Market Committee stated that it will continue its purchases of mortgage-backed securities, consider additional asset purchases, and employ other policy options until the labor market improves significantly.

In the U.S., economic growth remained weak, earnings growth decelerated, and manufacturing data continued to be disappointing during the last three months of this period. However, housing provided a bright spot as record-low borrowing costs attracted buyers and lifted demand for homebuilders. Stabilization in the residential real estate market offered hope that housing could spur economic growth. Dividends, which reached record highs, reflected balance sheet strength and confidence in corporate profits. Corporate hiring and investment inactivity was driven largely by political and fiscal uncertainties and U.S. unemployment remained high. There was a recovery in commodity prices lead by increases in WTI crude oil and an agricultural commodity rally following the U.S. droughts.

In Asia, positive news has been less forthcoming. Economic data has resolutely pointed to economic deterioration in both China and Japan. Despite some rhetoric from Chinese policy makers acknowledging the difficult economic environment, there has been little indication of imminent monetary stimulus from the Chinese authorities to alleviate an economic decline that is becoming the major source of concern for the global economic outlook. In Japan, however, the Bank of Japan did finally respond to a succession of poor industrial output and activity data by unexpectedly expanding its asset purchase program significantly until the end of 2013.

Q. What were the primary drivers behind Fund performance?

A: The Fund’s performance was primarily driven by its asset allocation and underlying security selection. A higher allocation to U.S. equities positively impacted the Fund’s performance as equity markets rallied during the period. A lower allocation to fixed income also contributed to positive performance as fixed income underperformed equities during the period. The S&P® 500 Index outperformed the Barclays U.S. Aggregate Bond Index over the twelve-month period. Additionally, security selection, primarily in international equities and fixed income, was a driver of positive absolute and relative performance.

 

Annual Report  |  23


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Total Return Fund

 

 

Q: Were there any significant changes in the Fund during the period?

A: The Fund’s exposure to equities, fixed income, and cash remained fairly consistent throughout the period. Net exposure at the end of the period was 65% equities, 32% fixed income, and 3% cash. Allocations within the Fund were periodically rebalanced to stay within guidelines.

During the first three months of the period the core international equity target was reduced by 1% and the emerging markets equity target was increased by an equivalent amount. Also, emerging markets equity was indexed. As equity markets rallied throughout the second three months of the period, the Fund rebalanced by selling 2% of its U.S. equity exposure and reallocating this to fixed income and cash. Within the Fund’s equity allocation, small-cap exposure was reduced in favor of a larger holding in mid-cap. At the end of May, the Fund rebalanced to new target equity allocations. Within equities, mid-cap, international, and global resources were reduced at the end of May in favor of larger allocations to large-cap U.S. equities, higher dividend equities, and REITs(3). During the last three months of the period, mid-cap equity and REITs were reduced and the cash position in the Fund was increased slightly.

Our overweight to U.S. equities at the end of the period reflects our view that on a risk-return basis, U.S. equities have been among the most attractive long-term investments. Equity risk premiums remained high and earnings yields versus treasury yields remained at wide levels, which we believed supported the case for being overweight equities and underweight fixed income. Additionally, solid corporate fundamentals and the differential in valuations between equities and fixed income strongly favored equities. While valuations in international equities have been attractive, macro concerns have caused us to allocate more of our equity exposure to U.S. equities. Throughout the period, the Fund maintained a significant underweight to fixed income, reflecting our view that valuations on both treasuries and corporate bonds were stretched. Toward the end of the period, the Fund slightly increased its weighting to cash which it held for tactical purposes waiting for more attractive investment opportunities.

 

Greg Hartch    Dafid Wiederecht
Senior Vice President at GEAM    President and Chief Investment Officer - Investment Strategies at GEAM

 

 

 

 

1. Beta - the covariance of manager and benchmark divided by the variance of the benchmark. Beta is a measure of systematic risk, or the sensitivity of a manager to movements in the benchmark. A beta of 1 implies that you can expect the movement of a manager return series to match that of the benchmark used to measure beta.

2. The price-to-earnings ratio, or P/E ratio, is an equity valuation measure defined as market price per share divided by annual earnings per share.

3. A REIT is a company that owns, and in most cases, operates income-producing real estate. It is a type of an investment.

 

24  |  Annual Report


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Total Return Fund

 

Pyxis Total Return Fund - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis Total Return Fund  

 

One
Year

      

 

Five
Year

      

 

Ten
Year

      

 

Since
Inception

       Inception Date  

Class A Shares, without sales charge

    17.01        -0.53        5.81        6.90%          02/22/93

Class A Shares, with sales charge

    10.29        -1.70        5.18        6.57%         

Class B Shares, without sales charge

    16.12        -1.27        5.34        6.49%          12/22/93

Class B Shares, with sales charge

    12.12        -1.27        5.34        6.49%         

Class C Shares, without sales charge

    16.17        -1.26        5.04        3.29%          09/30/99

Class C Shares, with sales charge

    15.17        -1.26        5.04        3.29%         

Class R Shares

    16.68        n/a           n/a           0.58%          01/29/08

Class Y Shares

 

    17.36        -0.29        6.14        7.07%          11/29/93

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

“Without Sales Charge” returns do not include sales charges or contingent deferred sales charges (“CDSC”). “With Sales Charge” returns reflect the maximum sales charge of 5.75% on Class A Shares. The maximum CDSC on Class B Shares is 4.00%. The CDSC on Class C Shares is 1.00% within the first year for each purchase; there is no CDSC on Class C Shares thereafter. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Class A: 1.49%, Class B: 2.24%, Class C: 2.24%, Class R: 1.74% and Class Y: 1.24%.

See Notes to Performance on page 1 for more information.

The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit risk and prepayment risk. As interest rates rise, the value of bonds will decline and an investor can lose principal. The Fund may invest in foreign securities which may cause more volatility and less liquidity due to currency changes, political instability and accounting differences. The Fund may also invest in mid-cap companies, derivatives and high yield debt (also known as junk bonds) which involves significant risks and losses may occur.

Mutual fund investing involves risk including the possible loss of principal.

 

Annual Report  |  25


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Tax-Exempt Fund

 

 

Q: How did the Pyxis Tax-Exempt Fund perform compared to its benchmark and Morningstar per group for the twelve month period ending September 30 2012?

A: For the twelve month period ended September 30 2012 the Pyxis Tax-Exempt Fund returned 6.79% for Class A shares, 6.01% for Class B shares, 5.93% for Class C shares and 6.97% for Class Y shares, net of fees, compared to its benchmark, the Barclay 10 Year Municipal Bond Index which returned 8.26%. The Fund’s Morningstar peer group, Intermediate term municipal bond funds, had an average return over the same period of 7.70%.

Q: What market conditions impacted the Fund’s performance?

A: Returns from a macro perspective in the tax-exempt market over the last year, have been guided by technical factors, namely limited supply and broad based demand. Strong swings in investor sentiment, translated into dramatic shifts in mutual fund flows as market participants struggled with the risk on/risk off scenario which dominated fixed income markets. As the market began to stabilize in the Fourth Quarter of 2011 the relative attractiveness of the intermediate portion of the tax exempt curve contrasted with the turmoil in Europe and volatility in the domestic equity market to enhance the safe harbor attributes of the market. Demand for tax-exempt assets temporarily rewarded a concentrated strategy and the Fund’s return lagged through year-end 2011. December however, saw the beginning of a trend, which has encompassed 45 consecutive weeks of positive municipal bond fund flows, contributing to broad based demand and significant curve flattening. As demand overwhelmed available supply, many investors, emboldened by accommodative Federal Reserve monetary policy, lined up to buy tax-exempt product. With an insatiable appetite for additional yield, investors extended their risk parameters, driving tax-exempt yields to record low levels, which in turn rewarded strategies with diversified structures.

Q: What were the primary drivers behind Fund performance?

A: The key drivers of Fund performance were diverse curve positioning of the portfolio and a duration extension executed early in the First Quarter of 2012. Our exposure to the long-end of the market, which extended duration approximately one year longer than the Barclay 10yr Municipal Bond Index, allowed the Fund to participate in the best returning segment of the market. Specifically, portfolio exposure to bonds in the 12 year and longer range, which aggregated roughly 40%.

Q: Were there any significant changes to the Fund during the period?

A: Early in 2012 we restructured the Fund to take advantage of a relatively steep yield curve. Given the attrition of several short duration securities through either call or maturity we were able to redeploy available cash in the 15-25 year segment of the curve, increasing our exposure there by 10% and extending the overall effective duration of the Fund by one year. In addition we restructured our exposure to the ten year sector to a one third weighting of the Fund in an effort to reduce tracking error versus the Barclay 10 year Municipal Bond Index. The result of our rebalancing, investing roughly 60% of the Fund inside of 12 years and increasing longer exposure to roughly 40%, enabled us to take advantage of significant yield curve compression while maintaining a defensive hedge against market volatility. Our diversified approach firmly positioned the Fund to participate in the rally which rewarded longer dated assets.

Michael J. Caufield

Senior Vice President at GEAM

 

26  |  Annual Report


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Tax-Exempt Fund

 

Pyxis Tax-Exempt Fund - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis Tax-Exempt Fund  

 

One
Year

      

 

Five
Year

      

 

Ten
Year

      

 

Since
Inception

       Inception Date  

Class A Shares, without sales charge

    6.79        4.96        3.70        4.55%          09/08/93

Class A Shares, with sales charge

    2.22        4.04        3.25        4.32%         

Class B Shares, without sales charge

    6.01        4.18        3.08        4.37%          09/08/93

Class B Shares, with sales charge

    3.01        4.18        3.08        4.37%         

Class C Shares, without sales charge

    5.93        4.15        2.93        3.87%          09/30/99

Class C Shares, with sales charge

    4.93        4.15        2.93        3.87%         

Class Y Shares

    6.97        5.19        4.35        4.91%          09/26/97
                     

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

“Without Sales Charge” returns do not include sales charges or contingent deferred sales charges (“CDSC”). “With Sales Charge” returns reflect the maximum sales charge of 4.25% on Class A Shares. The maximum CDSC on Class B Shares is 3.00%. The CDSC on Class C Shares is 1.00% within the first year for each purchase; there is no CDSC on Class C Shares thereafter. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Class A: 1.18%, Class B: 1.93%, Class C: 1.93% and Class Y: 0.93%.

A portion of the Tax-Exempt Fund’s income may be subject to state, federal and/or alternative minimum tax. Capital gains, if any, are subject to capital gains tax.

See Notes to Performance on page 1 for more information.

The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit risk and prepayment risk. As interest rates rise, the value of bonds will decline and an investor can lose principal. The Fund invests in municipal securities which may be affected by adverse legislative or political changes of the municipality. The Fund’s income may be subject to certain state and local taxes and depending on an investor’s status, to the federal alternative minimum tax (AMT).

Mutual fund investing involves risk including the possible loss of principal.

 

Annual Report  |  27


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Fixed Income Fund

 

 

Q: How did the Pyxis Fixed Income Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended September 30, 2012?

A: For the twelve-month period ended September 30, 2012, the Pyxis Fixed Income Fund returned 6.35% for Class A shares, 5.49% for Class B shares, 5.48% for Class C shares, 6.05% for Class R shares and 6.62% for Class Y shares, net of fees. The Fund’s benchmark, the Barclays U.S. Aggregate Bond Index returned 5.16% and the Fund’s Morningstar peer group, 1,212 U.S. Intermediate-Term Bond funds, returned an average of 7.42% over the same period.

Q: What market conditions impacted the Fund’s performance?

A: The primary drivers of fixed income asset returns over the period were the: 1) debt crisis in Europe, 2) fundamental economic outlook in the U.S. and Europe and 3) central bank policy. The twelve month period was defined by both “risk on” and “risk off ” periods that reflected investor sentiment around the factors listed above. For instance, risky assets performed well in both the first and third quarters of 2012 as central bank policy, primarily in Europe, calmed market fears of a potential breakup of the Eurozone. Accommodative policy from the Fed and ECB appeared to have a larger impact on interest rates and credit spreads than fundamental economic data, which showed a slowdown in the U.S. recovery and a recession in Europe.

Interest rates declined over the twelve month period, primarily in the intermediate area of the yield curve. While the U.S. Treasury 2-year note yield fell only 1 basis point to 0.23% and the 30-year bond yield fell 9 basis points to 2.82%, the 5-year and 10-year note yields fell 32 and 28 bps respectively, ending the period at 0.63% and 1.63%. Credit spreads ended the period tighter primarily in the first and third quarters of 2012. Investment grade credit spreads narrowed roughly 75 bps, while high yield spreads finished the period 255 bps tighter, in general. U.S. dollar emerging market sovereign debt also benefited from spread compression of 135 bps.

Q: What were the primary drivers behind Fund performance?

A: The primary drivers behind Fund performance were security selection within the investment grade corporate and agency mortgage-backed holdings and non-index exposures to both high yield and emerging market debt. BBB-rated(1) industrials and financials were sectors which had strong performers for the Fund. The Fund’s emphasis on current coupon mortgage-backed securities performed very well as these were targeted assets by the Fed for their purchase programs. During the “risk on” periods, the allocations to high yield and emerging market debt benefited from spread tightening versus U.S. Treasury yields.

Q: Were there any significant changes in the Fund during the period?

A: Early in 2012 we reduced the Fund’s exposure to high yield, emerging market debt and the overweight in commercial mortgage-backed securities fearing more volatility and higher spreads due to the Europe debt crisis. During the second quarter 2012, we increased the Fund’s allocation to agency mortgage-backed securities to take advantage of higher demand seen coming from QE3. After realizing positive performance from the overweight, the Fund’s allocation was reduced back to index neutral in the third quarter. As credit spreads tightened in the third quarter to levels we felt did not reflect our fundamental outlook, we reduced the Fund’s weighting in investment grade credit to an underweight position.

 

Paul M. Colonna    William M. Healey    Mark H. Johnson    Vita Marie Pike
President and Chief Investment    Senior Vice President at GEAM    Senior Vice President at GEAM    Senior Vice President at GEAM
Officer - Fixed Income at GEAM         

 

 

 

 

1. BBB is a credit quality rating issued by Standard & Poors used to measure the creditworthiness of bonds. The ratings generally range from AAA (being the highest) to D (being the lowest).

 

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Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Fixed Income Fund

 

Pyxis Fixed Income Fund - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis Fixed Income Fund  

 

One
Year

      

 

Five
Year

      

 

Ten
Year

      

 

Since
Inception

       Inception Date  

Class A Shares, without sales charge

    6.35        5.54        4.52        5.46%          02/22/93

Class A Shares, with sales charge

    1.81        4.62        4.06        5.23%         

Class B Shares, without sales charge

    5.49        4.72        4.05        5.20%          12/22/93

Class B Shares, with sales charge

    2.49        4.72        4.05        5.20%         

Class C Shares, without sales charge

    5.48        4.74        3.74        4.64%          09/30/99

Class C Shares, with sales charge

    4.48        4.74        3.74        4.64%         

Class R Shares

    6.05        n/a           n/a           4.75%          01/29/08

Class Y Shares

 

    6.62        5.77        4.77        5.69%          11/29/93

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

“Without Sales Charge” returns do not include sales charges or contingent deferred sales charges (“CDSC”). “With Sales Charge” returns reflect the maximum sales charge of 4.25% on Class A Shares. The maximum CDSC on Class B Shares is 3.00%. The CDSC on Class C Shares is 1.00% within the first year for each purchase; there is no CDSC on Class C Shares thereafter. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Class A: 0.94%, Class B: 1.69%, Class C: 1.69%, Class R: 1.19% and Class Y: 0.69%.

See Notes to Performance on page 1 for more information.

The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit risk and prepayment risk. As interest rates rise, the value of bonds will decline and an investor can lose principal. The fund may invest in derivatives, high yield debt (also known as junk bonds) and mortgage backed securities which involve significant risks and losses may occur. The Fund invests in foreign and emerging market securities which include risks relating to social and political stability, market illiquidity and currency volatility.

Mutual fund investing involves risk including the possible loss of principal.

 

Annual Report  |  29


Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Money Market Fund II

 

 

Q: How did the Pyxis Money Market Fund II perform compared to its benchmark and Morningstar peer group for the twelve-month period ended September 30, 2012?

For the twelve-month period ended September 30, 2012, the Pyxis Money Market Fund II returned 0.01% for the Class A shares and 0.01% for Institutional shares, net of fees. The Fund’s benchmark, the 90-day U.S. Treasury Bill returned 0.07% and the Fund’s Morningstar peer group, U.S. Money Market Taxable funds, returned an average of 0.01% over the same period.

Q: What market conditions impacted the Fund’s performance?

The biggest impact to the Fund’s performance continued to come from the unprecedented low global interest rate environment. Over the last twelve months, markets bore witness to coordinated policy accommodation from the major global central banks, pressuring all short rates. While the European banking and sovereign debt crises impacted credit spreads, the Fund’s conservative structure and dramatic allocation shift (see “significant changes” below) insulated it from adverse performance.

Q: What were the primary drivers behind Fund performance?

The Fund’s 10-20% allocation to floating rate notes (“FRNs”) was a positive contributor to performance. As LIBOR rates spiked in the fourth quarter, subsequently tapering off at a robust level for the first half of 2012, the FRNs in the Fund enjoyed high coupon payments. A 30-60% position in government securities provided the Fund with the flexibility to take advantage of credit opportunities when available.

Q: Were there any significant changes in the Fund during the period?

Because of the intensifying Euro zone banking and sovereign debt crises, the Fund’s sector allocations changed dramatically. Between September 30, 2011 and September 30, 2012, total European financial exposure, including the “safe haven” Scandinavian region, dropped by 72%. There has been no Euro zone financial exposure since the beginning of 2012. At the same time, total U.S. Government and Agency exposure doubled, ending at 58% of the Fund at the end of the twelve month period. In addition, exposure to non-financial credits doubled. At September 30, 2012 the Fund’s total interest rate risk, as evidenced by the Fund’s weighted average maturity, remained in a 31-45 day range.

GE Asset Management

Incorporated

An investment in the Pyxis Money Market Fund II is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

 

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Table of Contents

PORTFOLIO MANAGER COMMENTARY (unaudited)

 

  
September 30, 2012    Pyxis Money Market Fund II

 

Pyxis Money Market Fund II - Class A

Growth of Hypothetical $10,000 Investment

 

LOGO

 

 Pyxis Money Market Fund II  

 

One
Year

      

 

Five
Year

      

 

Ten
Year

      

 

Since
Inception

       Inception Date  

Retail Class

    0.01        0.74        1.73        3.06%          02/22/93

Institutional Class

 

    0.01        n/a           n/a           0.41%          03/17/08

Returns shown in the chart and table do not reflect taxes that a shareholder would pay on Fund distributions or on the sale of the Fund shares.

The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s share when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.pyxisais.com. The gross expense ratio as reported in the Fund’s prospectus was as follows: Retail Class: 0.37% and Institutional Class: 0.37%.

An investment in the Pyxis Money Market Fund II is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

 

     

 

Retail
Class

      

 

Institutional  
Class  

7-day current yield

     0.00      0.00%

7- day effective yield

 

     0.00      0.00%

The 7-day yield is as of 09/30/12. The yield quotation more closely reflects the current earnings of the Fund than the total return quotation.

See Notes to Performance on page 1 for more information.

Mutual fund investing involves risk including the possible loss of principal.

 

Annual Report  |  31


Table of Contents

FUND PROFILE (unaudited)

 

  
  

Pyxis Alpha Trend Strategies Fund

 

  Objective  
 

Pyxis Alpha Trend Strategies Fund seeks to provide above average total return over a complete market cycle primarily through capital appreciation, while also attempting to preserve capital and mitigate risk through hedging activities.

 

  Net Assets as of September 30, 2012  
 

$4.4 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis Alpha Trend Strategies Fund at the end of the reporting period. Pyxis Alpha Trend Strategies Fund is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

       Sector Classifications as of 09/30/2012 (%)*              
  

Equity Fund

     74.0      
  

Other Investments and Assets & Liabilities

     26.0      
        
      Top Holdings as of 09/30/2012 (%)*             
  

SPDR S&P 500 ETF Trust

     29.9      
  

Powershares QQQ Trust Series 1

     27.8      
  

iShares MSCI Italy Index Fund

     16.3      

 

* Industries and holdings are calculated as a percentage of total net assets. Top Holdings excludes the Fund’s investment in a registered investment company.

 

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FUND PROFILE (unaudited)

 

  
   Pyxis Alternative Income Fund

 

  Objective  
 

Pyxis Alternative Income Fund seeks to provide above-average total returns over a complete market cycle primarily through capital appreciation and income generation.

 

  Net Assets as of September 30, 2012  
 

$14.3 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis Alternative Income Fund at the end of the reporting period. Pyxis Alternative Income Fund is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

 Sector Classifications as of 09/30/2012 (%)*      Long Exposure      Short Exposure      Net Exposure

Debt Fund

     56.2      (19.3)      36.9

Other Investments and Assets & Liabilities

     63.1        0.0      63.1

 

 Top 10 Holdings as of 09/30/2012 (%)*                   
 Long Securities            Short Securities        

SPDR Barclays Capital High Yield Bond Fund ETF

     35.0       iShares iBoxx $ High Yield Corporate Bond Fund      (19.3)   

Vanguard High-Yield Corporate Fund

     32.9                 

SPDR Barclays Capital Short Term High Yield Bond ETF

     21.2         

 

* Industries and holdings are calculated as a percentage of total net assets. Top Holdings excludes the Fund’s investment in a registered investment company.

 

Annual Report  |  33


Table of Contents

FUND PROFILE (unaudited)

 

  
   Pyxis Energy and Materials Fund

 

  Objective  
 

Pyxis Energy and Materials Fund seeks to maximize total return, consistent with income generation and preservation of capital.

 

  Net Assets as of September 30, 2012  
 

$4.2 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis Energy and Materials Fund at the end of the reporting period. Pyxis Energy and Materials Fund is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

      Industry Classifications as of 09/30/2012 (%)*             
  

Other Investments and Assets & Liabilities

     100.0      

 

* Industries and holdings are calculated as a percentage of total net assets.

 

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Table of Contents

FUND PROFILE (unaudited)

 

  
   Pyxis Trend Following Fund

 

  Objective  
 

Pyxis Trend Following Fund seeks to provide long-term capital appreciation consistent with capital preservation.

 

  Net Assets as of September 30, 2012  
 

$2.2 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis Trend Following Fund at the end of the reporting period. Pyxis Trend Following Fund is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

      Sector Classifications as of 09/30/2012 (%)*             
  

Equity Fund

     61.7      
  

Commodity Fund

     20.3      
  

Other Investments and Assets & Liabilities

     18.0      
        
      Top Holdings as of 09/30/2012 (%)*             
  

ProShares Ultra S&P500

     20.7      
  

iShares MSCI EAFE Index Fund, ETF

     20.5      
  

PowerShares DB Commodity Index Tracking Fund

     20.3      
  

iShares MSCI Emerging Markets Index Fund

     10.5      
  

ProShares Ultra QQQ

     10.0      

 

* Industries and holdings are calculated as a percentage of total net assets. Top Holdings excludes the Fund’s investment in a registered investment company.

 

Annual Report  |  35


Table of Contents

FUND PROFILE (unaudited)

 

  
   Pyxis Core America Equity Fund

 

  Objective  
 

Pyxis Core America Equity Fund seeks to provide long-term growth of capital and future income.

 

  Net Assets as of September 30, 2012  
 

$201.4 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis Core America Equity Fund at the end of the reporting period. Pyxis Core America Equity Fund is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

       Sector Classifications as of 09/30/2012 (%)*              
  

Software & Services

     12.6      
  

Energy

     9.7      
  

Technology Hardware & Equipment

     9.4      
  

Diversified Financials

     8.9      
  

Media

     8.6      
  

Pharmaceuticals Biotechnology & Life Sciences

     7.8      
  

Health Care Equipment & Services

     7.5      
  

Food, Beverage & Tobacco

     5.6      
  

Retailing

     4.4      
  

Capital Goods

     4.4      
  

Other Investments and Assets & Liabilities

     21.1      
        
       Top 10 Holdings as of 09/30/2012 (%)*              
  

Apple, Inc.

     4.8      
  

Express Scripts Holding Co.

     2.9      
  

Covidien PLC

     2.6      
  

Microsoft Corp.

     2.6      
  

Wells Fargo & Co.

     2.4      
  

Cisco Systems, Inc.

     2.4      
  

Chevron Corp.

     2.4      
  

Qualcomm, Inc.

     2.2      
  

Oracle Corp.

     2.1      
  

PepsiCo, Inc.

     2.0      

 

* Industries and holdings are calculated as a percentage of total net assets. Top 10 Holdings excludes the Fund’s investment in a registered investment company.

 

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Table of Contents

FUND PROFILE (unaudited)

 

  
   Pyxis Dividend Equity Fund

 

  Objective  
 

Pyxis Dividend Equity Fund seeks to provide above average dividend yields with the potential for long-term capital appreciation.

 

  Net Assets as of September 30, 2012  
 

$11.1 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis Dividend Equity Fund at the end of the reporting period. Pyxis Dividend Equity Fund is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

       Industry Classifications as of 09/30/2012 (%)*              
  

Food, Beverage & Tobacco

     12.9      
  

Pharmaceuticals, Biotechnology & Life Sciences

     10.6      
  

Banks

     7.7      
  

Materials

     7.5      
  

Energy

     7.1      
  

Telecommunication Services

     6.6      
  

Utilities

     6.5      
  

Capital Goods

     5.3      
  

Retailing

     3.0      
  

Consumer Services

     3.0      
  

Other Investments and Assets & Liabilities

     29.8      
        
      Top 10 Holdings as of 09/30/2012 (%)*             
  

AT&T, Inc.

     4.1      
  

Chevron Corp.

     3.8      
  

Johnson & Johnson

     3.4      
  

Royal Dutch Shell PLC, ADR

     3.4      
  

Kellogg Co.

     3.3      
  

Home Depot, Inc. (The)

     3.0      
  

McDonald’s Corp.

     3.0      
  

Packaging Corp. of America

     2.9      
  

CBS Corp., Class B

     2.8      
  

Diageo PLC, ADR

     2.8      

 

* Industries and holdings are calculated as a percentage of total net assets. Top 10 Holdings excludes the Fund’s investment in a registered investment company.

 

Annual Report  |  37


Table of Contents

FUND PROFILE (unaudited)

 

  
   Pyxis Premier Growth Equity Fund

 

  Objective  
 

Pyxis Premier Growth Equity Fund seeks long-term growth of capital and future income rather than current income.

 

  Net Assets as of September 30, 2012  
 

$163.0 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis Premier Growth Equity Fund at the end of the reporting period. Pyxis Premier Growth Equity Fund is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

      Sector Classifications as of 09/30/2012 (%)*             
  

Software & Services

     23.3      
  

Technology Hardware & Equipment

     12.2      
  

Media

     9.1      
  

Health Care Equipment & Services

     8.3      
  

Retailing

     7.5      
  

Diversified Financials

     7.4      
  

Pharmaceuticals, Biotechnology & Life Sciences

     5.6      
  

Energy

     5.4      
  

Food, Beverage & Tobacco

     3.3      
  

Capital Goods

     3.2      
  

Other Investments and Assets & Liabilities

     14.7      
        
      Top 10 Holdings as of 09/30/2012 (%)*             
  

Apple, Inc.

     7.0      
  

Express Scripts Holding Co.

     4.4      
  

Schlumberger, Ltd.

     4.2      
  

Qualcomm, Inc.

     4.1      
  

Covidien PLC

     3.9      
  

eBay, Inc.

     3.9      
  

Liberty Global, Inc., Class C

     3.8      
  

Visa, Inc., Class A

     3.5      
  

Western Union Co. (The)

     3.5      
  

CME Group, Inc.

     3.5      

 

* Industries and holdings are calculated as a percentage of total net assets. Top 10 Holdings excludes the Fund’s investment in a registered investment company.

 

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FUND PROFILE (unaudited)

 

  
   Pyxis Small-Cap Equity Fund

 

  Objective  
 

Pyxis Small-Cap Equity Fund seeks long-term growth of capital.

 

  Net Assets as of September 30, 2012  
 

$37.3 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis Small-Cap Equity Fund at the end of the reporting period. Pyxis Small-Cap Equity Fund is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

       Sector Classifications as of 09/30/2012 (%)*              
  

Software & Services

     13.1      
  

Health Care Equipment & Services

     11.6      
  

Capital Goods

     9.5      
  

Energy

     7.4      
  

Banks

     5.4      
  

Materials

     5.4      
  

Insurance

     5.0      
  

Pharmaceuticals, Biotechnology & Life Sciences

     4.4      
  

Food, Beverage & Tobacco

     3.7      
  

Real Estate

     3.6      
  

Other Investments and Assets & Liabilities

     30.9      
        
       Top 10 Holdings as of 09/30/2012 (%)*              
  

Sensient Technologies Corp.

     1.6      
  

Bio-Reference Labs, Inc.

     1.5      
  

Jarden Corp.

     1.5      
  

LKQ Corp.

     1.5      
  

Packaging Corp. of America

     1.4      
  

John Wiley & Sons, Inc., Class A

     1.3      
  

Applied Industrial Technologies, Inc.

     1.2      
  

Omega Healthcare Investors, Inc., REIT

     1.2      
  

Arbitron, Inc.

     1.2      
  

Allied World Assurance Co. Holdings, Ltd.

     1.2      

 

* Industries and holdings are calculated as a percentage of total net assets. Top 10 Holdings excludes the Fund’s investment in a registered investment company.

 

Annual Report  |  39


Table of Contents

FUND PROFILE (unaudited)

 

  
   Pyxis Global Equity Fund

 

  Objective  
 

Pyxis Global Equity Fund seeks long-term growth of capital.

 

  Net Assets as of September 30, 2012  
 

$23.5 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis Global Equity Fund at the end of the reporting period. Pyxis Global Equity Fund is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

       Country Classifications as of 09/30/12 (%)*              
  

United States

     43.5      
  

United Kingdom

     14.4      
  

Canada

     4.9      
  

Sweden

     4.7      
  

Hong Kong

     4.6      
  

Japan

     4.6      
  

Switzerland

     4.5      
  

Italy

     3.3      
  

Germany

     3.0      
  

South Korea

     2.8      
  

France

     2.3      
  

Brazil

     1.9      
  

Other Investments and Assets & Liabilities

     5.5      
        
      Top 10 Holdings as of 09/30/2012 (%)*             
  

Johnson & Johnson

     4.9      
  

AIA Group, Ltd.

     4.6      
  

Nestle SA

     4.5      
  

Standard Chartered PLC

     4.5      
  

Qualcomm, Inc.

     4.0      
  

Diageo PLC

     3.9      
  

Google, Inc., Class A

     3.8      
  

BG Group PLC

     3.4      
  

Luxottica Group SpA

     3.3      
  

Honeywell International, Inc.

     3.3      

 

* Countries and holdings are calculated as a percentage of total net assets. Top 10 Holdings excludes the Fund’s investment in a registered investment company.

 

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FUND PROFILE (unaudited)

 

  
   Pyxis International Equity Fund

 

  Objective  
 

Pyxis International Equity Fund seeks long-term growth of capital.

 

  Net Assets as of September 30, 2012  
 

$12.6 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis International Equity Fund at the end of the reporting period. Pyxis International Equity Fund is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

       Sector Classifications as of 09/30/12 (%)*              
  

United Kingdom

     24.3      
  

Japan

     15.3      
  

Germany

     12.9      
  

Switzerland

     8.6      
  

France

     8.0      
  

Canada

     3.0      
  

Sweden

     2.8      
  

Hong Kong

     2.5      
  

Netherlands

     2.4      
  

Taiwan

     2.3      
  

Other Investments and Assets & Liabilities

     17.9      
        
       Top 10 Holdings as of 09/30/2012 (%)*              
  

Diageo PLC

     2.7      
  

Nestle SA

     2.6      
  

HSBC Holdings PLC

     2.5      
  

SAP AG

     2.4      
  

Linde AG

     2.4      
  

Taiwan Semiconductor Manufacturing Co., Ltd., ADR

     2.3      
  

Vodafone Group PLC

     2.1      
  

AIA Group, Ltd.

     2.1      
  

Fresenius SE & Co. KGaA

     2.0      
  

BG Group PLC

     2.0      

 

* Countries and holdings are calculated as a percentage of total net assets.

 

Annual Report  |  41


Table of Contents

FUND PROFILE (unaudited)

 

  
   Pyxis Total Return Fund

 

  Objective  
 

Pyxis Total Return Fund seeks maximum total return, which includes both income and capital appreciation.

 

  Net Assets as of September 30, 2012  
 

$82.5 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis Total Return Fund at the end of the reporting period. Pyxis Total Return Fund is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

 Quality Breakdown as of 09/30/12 (%)*        

AAA

     3.0   

AA

     68.1   

A

     10.8   

BBB

     10.5   

BB

     4.9   

B

     1.1   

D

     0.0   

Not Rated

     1.6  † 
 Sector Classifications as of 09/30/2012 (%)*        

Common Stock

     53.6   

U.S. Treasuries

     9.6   

Agency Mortgage Backed

     9.5   

Corporate Notes

     8.5   

Non-Agency Collateralized Mortgage Backed Securities

     0.8   

Sovereign Bonds

     0.7   

Preferred Stock

     0.2   

Agency Collateralized Mortgage Obligations

     0.2   

Municipal Bonds and Notes

     0.2   

Non-Agency Collateralized Mortgage Obligations

     0.1   

Asset Backed

     0.0  † 

Other Investments and Asset & Liabilities

     16.6   
 

 

 Top 10 Holdings as of 09/30/2012 (%)*        

Vanguard MSCI Emerging Markets, ETF

     3.8   

U.S. Treasury Bonds 3.00%, 05/15/42

     2.8   

U.S. Treasury Notes 0.50%, 07/31/17

     2.2   

Apple, Inc.

     2.1   

U.S. Treasury Notes 1.63% 08/15/22

     1.6   

U.S. Treasury Notes 0.75% 06/30/17

     1.5   

Qualcomm, Inc.

     1.2   

Microsoft Corp.

     1.1   

PepsiCo, Inc.

     1.1   

Vanguard REIT ETF

     1.0   
 

 

* Quality is calculated as a percentage of total bonds and notes. Sectors and holdings are calculated as a percentage of total net assets. The quality ratings reflected were issued by Standard & Poors, a nationally recognized statistical rating organization. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Quality ratings reflect the credit quality of the underlying bonds in the Fund’s portfolio and not that of the Fund itself. Quality Ratings are subject to change. Top 10 Holdings excludes the Fund’s investment in a registered investment company.

Less than 0.005%.

 

42  |  Annual Report


Table of Contents

FUND PROFILE (unaudited)

 

  
   Pyxis Tax-Exempt Fund

 

  Objective  
 

Pyxis Tax-Exempt Fund seeks as high a level of income exempt from federal income taxation as is consistent with preservation of capital.

 

  Net Assets as of September 30, 2012  
 

$35.7 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis Tax-Exempt Fund at the end of the reporting period. Pyxis Tax-Exempt Fund is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

 Quality Breakdown as of 09/30/12 (%)*        

AAA

     14.0   

AA

     40.4   

A

     18.6   

BBB

     3.2   

Not Rated

     23.8   

 

 Top 10 Holdings as of 09/30/2012 (%)*        

Missouri Highway & Transportation Commission
5.00%, 05/01/21

     5.2   

State of Hawaii
5.25%, 07/01/24

     3.8   

Los Angeles Harbor Department
5.00%, 08/01/26

     3.8   

California State Department of Water Resources
5.00%, 12/01/21

     3.6   

Town of Fairfield CT
5.00%, 01/01/21

     3.5   

New York State Urban Development Corp.
5.50%, 01/01/19

     3.5   

Georgetown County School District
5.00%, 03/01/18

     3.4   

Municipal Electric Authority of Georgia
5.00%, 01/01/19

     3.4   

City of New Haven CT
5.38%, 12/01/12

     2.8   

County of Montgomery MD
5.00%, 07/01/21

     2.7   
 Sector Classifications as of 09/30/2012 (%)*        

Municipal Bonds and Notes

     99.2   

Other Investments and Assets & Liabilities

     0.8   
 

 

* Quality is calculated as a percentage of total bonds and notes. Sectors and holdings are calculated as a percentage of total net assets. The quality ratings reflected were issued by Standard & Poors, a nationally recognized statistical rating organization. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Quality ratings reflect the credit quality of the underlying bonds in the Fund’s portfolio and not that of the Fund itself. Quality Ratings are subject to change. Top 10 Holdings excludes the Fund’s investment in a registered investment company.

A portion of the Tax-Exempt Fund’s income may be subject to state, federal and/or alternative minimum tax. Capital gains, if any, are subject to capital gains tax.

 

Annual Report  |  43


Table of Contents

FUND PROFILE (unaudited)

 

  
   Pyxis Fixed Income Fund

 

  Objective  
 

Pyxis Fixed Income Fund seeks maximum income consistent with prudent investment management and the preservation of capital.

 

  Net Assets as of September 30, 2012  
 

$208.8 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis Fixed Income Fund at the end of the reporting period. Pyxis Fixed Income Fund is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

 Quality Breakdown as of 09/30/12 (%)*        

AAA

     0.9   

AA

     26.5   

A

     10.2   

BBB

     7.5   

BB

     2.2   

B

     1.6   

D†

     0.0   

Not Rated

     51.1   
 Sector Classifications as of 09/30/2012 (%)*        

U.S. Treasuries

     58.5   

Agency Mortgage Backed

     14.5   

Corporate Notes

     11.2   

U.S. Government Agency

     3.1   

Asset Backed

     2.1   

Non-Agency Collateralized Mortgage Backed Securities

     2.0   

Sovereign Bonds

     0.9   

Agency Collateralized Mortgage Obligations

     0.8   

Municipal Bonds and Notes

     0.3   

Non-Agency Collateralized Mortgage Obligations

     0.0 † 

Other Investments and Assets & Liabilities

     6.6   
 

 

 Top 10 Holdings as of 09/30/2012 (%)*        

U.S. Treasury Notes 0.13%, 07/31/14

     17.0   

U.S. Treasury Notes 0.50%, 07/31/17

     11.4   

U.S. Treasury Notes 0.75%, 06/30/17

     8.4   

U.S. Treasury Notes 1.63%, 08/15/22

     8.4   

U.S. Treasury Bonds 3.00%, 05/15/42

     5.2   

U.S. Treasury Bonds 3.13%, 02/15/42

     2.5   

Federal Home Loan Mortgage Corp. 2.00%, 08/25/16

     2.4   

U.S. Treasury Notes 1.38%, 01/15/13

     1.7   

U.S. Treasury Notes 1.75%, 05/15/22

     1.3   

Government National Mortgage Assoc. 3.50%, TBA

     1.1   

* Quality is calculated as a percentage of total bonds and notes. Sectors and holdings are calculated as a percentage of total net assets. The quality ratings reflected were issued by Standard & Poors, a nationally recognized statistical rating organization. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Quality ratings reflect the credit quality of the underlying bonds in the Fund’s portfolio and not that of the Fund itself. Quality Ratings are subject to change. Top 10 Holdings excludes the Fund’s investment in a registered investment company.

Less than 0.005%.

 

 

44  |   Annual Report


Table of Contents

FUND PROFILE (unaudited)

 

  
   Pyxis Money Market Fund II

 

  Objective  
 

Pyxis Money Market Fund II seeks high level of current income consistent with the preservation of capital and maintenance of liquidity.

 

  Net Assets as of September 30, 2012  
 

$75.3 million

 

  Portfolio Data as of September 30, 2012  
 

The information below provides a snapshot of Pyxis Money Market Fund II at the end of the reporting period. Pyxis Money Market Fund II is actively managed and the composition of its portfolio will change over time. Current and future holdings are subject to risk.

 

 Sector Classifications as of 09/30/2012 (%)*        

U.S. Government Agency

     29.8   

Commercial Paper

     19.5   

U.S. Treasuries

     19.2   

Certificates of Deposit

     15.7   

Repurchase Agreement

     8.6   

Corporate Notes

     2.7   

Other Investments and Assets & Liabilities

     4.5   
 Top 10 Holdings as of 09/30/2012 (%)*        

Barclays Capital, Inc.

     8.6   

U.S. Treasury Notes 0.50%, 11/30/12

     4.7   

U.S. Treasury Bills 0.06%, 10/18/12

     3.6   

U.S. Treasury Notes 1.38%, 01/15/13

     2.8   

U.S. Treasury Notes 1.38%, 10/15/12

     2.8   

U.S. Treasury Notes 0.38%, 10/31/12

     2.8   

HSBC Bank PLC 0.26%, 03/25/13

     2.6   

Federal Home Loan Bank Discount Notes 0.12%, 10/24/12

     2.6   

U.S. Treasury Notes 1.38%, 03/15/13

     2.5   

Freddie Mac Discount Notes 0.12%, 11/19/12

     2.5   
 

 

* Sectors and holdings are calculated as a percentage of total net assets. Top 10 Holdings excludes the Fund’s investment in a registered investment company

An investment in a money market fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Pyxis Money Market Fund II seeks to maintain a net asset value of $1.00 per share, it is possible to lose money on an investment in the Pyxis Money Market Fund II.

 

Annual Report  |  45


Table of Contents

FINANCIAL STATEMENTS

 

  
September 30, 2012   

 

        A guide to understanding each Fund’s financial statements
Investment Portfolio      The Investment Portfolio details each of the Fund’s holdings and their fair value as of the
last day of the reporting period. Portfolio holdings are organized by type of asset and
industry to demonstrate areas of concentration and diversification.
Statement of Assets and Liabilities      This statement details each Fund’s assets, liabilities, net assets and share price for each share class as of the last day of the reporting period. Net assets are calculated by subtracting all of a Fund’s liabilities (including any unpaid expenses) from the total of the Fund’s investment and non-investment assets. The net asset value per share for each class is calculated by dividing net assets allocated to that share class by the number of shares outstanding in that class as of the last day of the reporting period.
Statement of Operations      This statement reports income earned by each Fund and the expenses accrued by each Fund during the reporting period. The Statement of Operations also shows any net gain or loss a Fund realized on the sales of its holdings during the period as well as any unrealized gains or losses recognized over the period. The total of these results represents a Fund’s net increase or decrease in net assets from operations.
Statement of Changes in Net Assets      This statement details how each Fund’s net assets were affected by its operating results, distributions to shareholders and shareholder transactions (e.g., subscriptions, redemptions and distribution reinvestments) during the reporting period. The Statement of Changes in Net Assets also details changes in the number of shares outstanding.
Statement of Cash Flows      This statement reports net cash and foreign currency, excluding restricted cash, provided or used by operating, investing and financing activities and the net effect of those flows on cash and foreign currency during the period.
Financial Highlights      The Financial Highlights demonstrate how each Fund’s net asset value per share was affected by the Fund’s operating results. The Financial Highlights also disclose the classes’ performance and certain key ratios (e.g., net expenses and net investment income as a percentage of average net assets).
Notes to Financial Statements      These notes disclose the organizational background of the Funds, certain of their significant accounting policies (including those surrounding security valuation, income recognition and distributions to shareholders), federal tax information, fees and compensation paid to affiliates and significant risks and contingencies.

 

46  |   Annual Report


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis Alpha Trend Strategies Fund

 

             Shares            

        Value ($)  
  

 

  

 

  

 

 

 

Exchange Traded Funds - 74.0%

     

EQUITY FUND - 74.0%

     
60,000   

iShares MSCI Italy Index Fund

        721,800   
18,000   

Powershares QQQ Trust Series 1

        1,234,440   
9,200   

SPDR S&P 500 ETF Trust

        1,324,156   
           3,280,396   
     

 

 
  

Total Exchange Traded Funds
(Cost $3,229,799)

        3,280,396   
     

 

 

Registered Investment
Company - 12.4%

     
548,248   

Federated Prime Obligations Fund

        548,248   
     

 

 
  

Total Registered Investment
Company
(Cost $548,248)

        548,248   
     

 

 

             Shares            

        Value ($)  
  

 

  

 

  

 

 

 

Total Investments - 86.4%
(Cost $3,778,047)

        3,828,644   
     

 

 

Other Assets & Liabilities,
Net - 13.6%

        604,259   
     

 

 

Net Assets - 100.0%

        4,432,903   
     

 

 

 

ETF    Exchange Traded Fund
MSCI    Morgan Stanley Capital International
SPDR    Standard & Poor’s Depositary Receipts
 

 

See accompanying Notes to Financial Statements  |  47


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis Alternative Income Fund

 

             Shares            

        Value ($)  
  

 

  

 

  

 

 

 

Exchange Traded Funds - 56.2%

     

DEBT FUND - 56.2%

     
125,000   

SPDR Barclays Capital High Yield
Bond Fund ETF(a)(b)

        5,027,500   
99,900   

SPDR Barclays Capital Short Term
High Yield Bond ETF

        3,040,856   
     

 

 
           8,068,356   
     

 

 
  

Total Exchange Traded Funds
(Cost $7,991,118)

        8,068,356   
     

 

 

             Shares            

        Value ($)  
  

 

  

 

  

 

 

 

Registered Investment
Company - 33.7%

     
111,763   

Federated Prime Obligations Fund

        111,762   
783,981   

Vanguard High-Yield Corporate
Fund(a)

        4,719,569   
     

 

 
  

Total Registered Investment
Company
(Cost $4,749,098)

        4,831,331   
     

 

 

Total Investments - 89.9%
(Cost $12,740,216)

        12,899,687   
     

 

 

Short Sales - (19.3)%

     

DEBT FUND - (19.3)%

     
(30,000)   

iShares iBoxx $ High Yield
Corporate Bond Fund

        (2,771,100
     

 

 
  

Total Short Sales
(Proceeds $2,750,203)

        (2,771,100
     

 

 

Other Assets & Liabilities,
Net - 29.4%

        4,218,429   
     

 

 

Net Assets - 100.0%

        14,347,016   
     

 

 

 

(a) Security position is either entirely or partially held in a segregated account as collateral for securities sold short. At September 30, 2012, the market value of securities held as collateral was $4,675,019.
(b) Securities (or a portion of securities) on loan. As of September 30, 2012, the market value of securities loaned was $4,022,000. The loaned securities were secured with cash collateral of $4,125,000.
  See Note 5.

 

ETF    Exchange Traded Fund
SPDR    Standard & Poor’s Depositary Receipt
 

 

48  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis Energy and Materials Fund

 

             Shares            

       Value ($)  
  

 

    

 

 

 

Registered Investment Company - 5.3%

    
223,385   

Federated Prime Obligations Fund

       223,385   
    

 

 
  

Total Registered Investment Company
(Cost $223,385)

       223,385   
    

 

 

Total Investments - 5.3%
(Cost $223,385)

       223,385   
    

 

 
              Value ($)  
  

 

 

 

  

 

 

 

Other Assets & Liabilities,
Net - 94.7%

       4,002,966   
    

 

 

Net Assets - 100.0%

       4,226,351   
    

 

 
 

 

See accompanying Notes to Financial Statements  |  49


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis Trend Following Fund

 

             Shares            

        Value ($)  
  

 

     

 

 

 

Exchange Traded Funds - 82.0%

     

COMMODITY FUND - 20.3%

     
15,500   

PowerShares DB Commodity Index Tracking Fund(a)

        444,540   
     

 

 

EQUITY FUND - 61.7%

     
8,500   

iShares MSCI EAFE Index Fund, ETF

        450,500   
5,600   

iShares MSCI Emerging Markets Index Fund

        231,392   
3,600   

ProShares Ultra QQQ(a)(b)

        218,988   
7,400   

ProShares Ultra S&P500(b)

        453,028   
     

 

 
           1,353,908   
     

 

 
  

Total Exchange Traded Funds
(Cost $1,733,046)

        1,798,448   
     

 

 

             Shares            

        Value ($)  
  

 

     

 

 

 

Registered Investment Company - 27.4%

     
601,198   

Federated Prime Obligations Fund

        601,198   
     

 

 
  

Total Registered Investment Company
(Cost $601,198)

        601,198   
     

 

 

Total Investments - 109.4%
(Cost $2,334,244)

        2,399,646   
     

 

 

Liabilities in Excess of Other Assets - (9.4)%

        (206,304
     

 

 

Net Assets - 100.0%

        2,193,342   
     

 

 

 

(a) Non-income producing security.
(b) Securities (or a portion of securities) on loan. As of September 30, 2012, the market value of securities loaned was $653,650. The loaned securities were secured with cash collateral of $677,825. See Note 5.

 

MSCI   Morgan Stanley Capital International
MSCI EAFE   Morgan Stanley Capital International Europe, Australasia and Far East
S&P   Standard & Poor’s
 

 

50  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis Core America Equity Fund

 

             Shares            

        Value ($)  
  

 

     

 

 

 

Common Stock - 96.3%

     

AUTOMOBILES & COMPONENTS - 0.3%

     
60,051   

Ford Motor Co.

        592,103   
     

 

 

BANKS - 3.8%

     
377,711   

Regions Financial Corp.

        2,723,296   
142,680   

Wells Fargo & Co.

        4,926,740   
     

 

 
           7,650,036   
     

 

 

CAPITAL GOODS - 4.4%

     
31,973   

ABB, Ltd., ADR

        597,895   
1,948   

Caterpillar, Inc.

        167,607   
5,843   

Cummins, Inc.

        538,783   
22,762   

Deere & Co.

        1,877,637   
33,245   

Dover Corp.

        1,977,745   
12,984   

Eaton Corp.(a)

        613,624   
51,746   

Honeywell International, Inc.

        3,091,824   
     

 

 
           8,865,115   
     

 

 

CONSUMER DURABLES & APPAREL - 0.5%

     
26,850   

MDC Holdings, Inc.

        1,033,994   
     

 

 

CONSUMER SERVICES - 0.4%

     
16,371   

Las Vegas Sands Corp.

        759,123   
     

 

 

DIVERSIFIED FINANCIALS - 8.9%

     
53,154   

American Express Co.

        3,022,336   
56,877   

Ameriprise Financial, Inc.

        3,224,357   
45,302   

Citigroup, Inc.

        1,482,281   
54,571   

CME Group, Inc.

        3,126,918   
18,009   

Goldman Sachs Group, Inc. (The)

        2,047,263   
127,787   

Invesco, Ltd.

        3,193,397   
16,761   

JPMorgan Chase & Co.

        678,485   
26,631   

State Street Corp.

        1,117,437   
     

 

 
           17,892,474   
     

 

 

ENERGY - 9.7%

     
45,008   

Anadarko Petroleum Corp.

        3,146,959   
41,820   

Chevron Corp.

        4,874,539   
13,958   

Exxon Mobil Corp.

        1,276,459   
13,633   

Halliburton Co.

        459,296   
16,879   

Hess Corp.

        906,740   
34,084   

Marathon Oil Corp.

        1,007,864   
41,807   

Occidental Petroleum Corp.

        3,597,910   
51,005   

Schlumberger, Ltd.

        3,689,192   
17,853   

Williams Cos., Inc. (The)

        624,319   
     

 

 
           19,583,278   
     

 

 

FOOD, BEVERAGE & TOBACCO - 5.6%

     
15,280   

Altria Group, Inc.

        510,199   
88,800   

Archer-Daniels-Midland Co.

        2,413,584   
53,560   

Coca-Cola Enterprises, Inc.

        1,674,821   
58,630   

Kraft Foods, Inc., Class A(b)

        2,424,350   
7,304   

Mondelez International, Inc., Class A

        193,921   
57,826   

PepsiCo, Inc.

        4,092,346   
     

 

 
           11,309,221   
     

 

 

HEALTH CARE EQUIPMENT &
SERVICES - 7.5%

     
35,757   

Cardinal Health, Inc.

        1,393,450   
88,734   

Covidien PLC

        5,272,574   
94,028   

Express Scripts Holding Co.(b)

        5,892,735   
17,043   

HCA Holdings, Inc.

        566,680   
43,820   

Medtronic, Inc.

        1,889,518   
     

 

 
           15,014,957   
     

 

 

             Shares            

        Value ($)  
  

 

     

 

 

 

INSURANCE - 3.5%

     
40,185   

ACE, Ltd.

        3,037,986   
91,141   

American International Group, Inc.(b)

        2,988,513   
18,664   

Prudential Financial, Inc.

        1,017,375   
     

 

 
           7,043,874   
     

 

 

MATERIALS - 3.1%

     
31,649   

Allegheny Technologies, Inc.

        1,009,603   
6,492   

EI du Pont de Nemours & Co.

        326,353   
49,724   

Freeport-McMoRan Copper & Gold, Inc.

        1,968,077   
16,808   

Monsanto Co.

        1,529,864   
19,152   

Potash Corp. of Saskatchewan, Inc.

        831,580   
4,870   

PPG Industries, Inc.

        559,271   
     

 

 
           6,224,748   
     

 

 

MEDIA - 8.6%

     
16,230   

CBS Corp., Class B

        589,636   
113,723   

Comcast Corp., Class A

        4,067,872   
26,194   

DIRECTV(b)

        1,374,137   
26,413   

Discovery Communications, Inc., Class C(b)

        1,480,185   
35,142   

Liberty Global, Inc., Class C(b)

        1,982,712   
26,293   

Nielsen Holdings NV(b)

        788,264   
34,083   

Omnicom Group, Inc.

        1,757,319   
90,264   

Time Warner, Inc.

        4,091,667   
22,723   

Walt Disney Co. (The)

        1,187,958   
     

 

 
           17,319,750   
     

 

 

PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES - 7.8%

     
35,109   

Agilent Technologies, Inc.

        1,349,941   
34,785   

Amgen, Inc.

        2,933,071   
28,049   

Bristol-Myers Squibb Co.

        946,654   
20,737   

Gilead Sciences, Inc.(b)

        1,375,485   
52,635   

Johnson & Johnson

        3,627,078   
10,549   

Novartis AG, ADR

        646,232   
35,706   

PerkinElmer, Inc.

        1,052,256   
148,197   

Pfizer, Inc.

        3,682,695   
     

 

 
           15,613,412   
     

 

 

REAL ESTATE - 0.7%

     
16,373   

American Tower Corp., REIT

        1,168,868   
9,606   

CBRE Group, Inc., Class A(b)

        176,846   
     

 

 
           1,345,714   
     

 

 

RETAILING - 4.4%

     
2,729   

Amazon.com, Inc.(b)

        694,039   
13,752   

Bed Bath & Beyond, Inc.(b)

        866,376   
14,843   

Dick’s Sporting Goods, Inc.

        769,610   
120,267   

Lowe’s Cos., Inc.

        3,636,874   
26,781   

Macy’s, Inc.

        1,007,501   
31,291   

Target Corp.

        1,986,040   
     

 

 
           8,960,440   
     

 

 

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.2%

     
15,418   

Altera Corp.

        523,981   
14,607   

Analog Devices, Inc.

        572,448   
46,231   

Texas Instruments, Inc.

        1,273,664   
     

 

 
           2,370,093   
     

 

 

SOFTWARE & SERVICES - 12.6%

     
14,406   

Baidu, Inc., ADR(b)

        1,682,909   
 

 

See accompanying Notes to Financial Statements  |  51


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Core America Equity Fund

 

             Shares            

        Value ($)  
  

 

  

 

  

 

 

 

Common Stock — (continued)

     

SOFTWARE & SERVICES — (continued)

     
41,694   

eBay, Inc.(b)

        2,018,407   
4,011   

Google, Inc., Class A(b)

        3,026,300   
8,439   

International Business Machines Corp.(c)

        1,750,671   
11,132   

Intuit, Inc.

        655,452   
173,780   

Microsoft Corp.

        5,175,168   
133,350   

Oracle Corp.

        4,199,192   
43,657   

Paychex, Inc.

        1,453,342   
13,752   

Visa, Inc., Class A

        1,846,619   
201,452   

Western Union Co. (The)

        3,670,455   
     

 

 
           25,478,515   
     

 

 

TECHNOLOGY HARDWARE &
EQUIPMENT - 9.4%

     
14,345   

Apple, Inc.

        9,571,845   
257,922   

Cisco Systems, Inc.

        4,923,732   
70,727   

Qualcomm, Inc.

        4,419,730   
     

 

 
           18,915,307   
     

 

 

TELECOMMUNICATION SERVICES - 0.2%

     
12,984   

AT&T, Inc.

        489,497   
     

 

 

TRANSPORTATION - 2.3%

     
47,067   

CSX Corp.

        976,640   
51,673   

United Parcel Service, Inc., Class B

        3,698,237   
     

 

 
           4,674,877   
     

 

 

UTILITIES - 1.4%

     
100,627   

AES Corp.(b)

        1,103,878   
50,639   

Calpine Corp.(b)

        876,055   
19,254   

FirstEnergy Corp.

        849,101   
     

 

 
           2,829,034   
     

 

 
  

Total Common Stock
(Cost $168,214,776)

        193,965,562   
     

 

 

             Shares            

        Value ($)  
  

 

     

 

 

 

Other Investments - 1.6%

     
42,601   

Financial Select Sector SPDR
Fund, ETF

        664,576   
62,289   

GEI Investment Fund(d)

        76,615   
69,570   

Industrial Select Sector SPDR
Fund, ETF(a)

        2,542,088   
     

 

 
  

Total Other Investments
(Cost $3,630,815)

        3,283,279   
     

 

 

Registered Investment
Company - 2.0%

     
3,922,220   

Federated Prime Obligations Fund

        3,922,220   
     

 

 
  

Total Registered Investment
Company
(Cost $3,922,220)

        3,922,220   
     

 

 

Total Investments - 99.9%
(Cost $175,767,811)

        201,171,061   
     

 

 

Other Assets & Liabilities,
Net - 0.1%

        237,812   
     

 

 

Net Assets - 100.0%

        201,408,873   
     

 

 

 

(a) Securities (or a portion of securities) on loan. As of September 30, 2012, the market value of securities loaned was $712,437. The loaned securities were secured with cash collateral of $729,648. See Note 5.
(b) Non-income producing security.
(c) At September 30, 2012, all or portion of this security was pledged as collateral requirements for futures contracts and/or TBA’s.
(d) The security is a private fund.

 

ADR    American Depositary Receipt
ETF    Exchange Traded Fund
REIT    Real Estate Investment Trust
SPDR    Standard & Poor’s Depositary Receipt
TBA    To be announced

The Fund had the following futures contracts, brokered by Royal Bank of Scotland, open at September 30, 2012:

 

Description  

Expiration

Date

  Number
of
Contracts
  Notional
Value
  Unrealized
Appreciation
(Depreciation)
 

Long Futures:

       

S&P 500 Emini Index Futures

  December 2012   5   $358,563   $ (6,215
       

 

 

 
 

 

52  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis Dividend Equity Fund

 

             Shares            

        Value ($)  
  

 

     

 

 

 

Common Stock - 90.7%

     

BANKS - 7.7%

     
4,170   

PNC Financial Services Group, Inc.

        263,127   
8,685   

US Bancorp

        297,896   
8,530   

Wells Fargo & Co.

        294,541   
     

 

 
           855,564   
     

 

 

CAPITAL GOODS - 5.3%

     
13,440   

General Electric Co.

        305,222   
3,450   

Hubbell, Inc., Class B

        278,553   
     

 

 
           583,775   
     

 

 

COMMERCIAL & PROFESSIONAL SERVICES - 2.3%

     
15,805   

Ennis, Inc.

        259,360   
     

 

 

CONSUMER DURABLES & APPAREL - 2.0%

     
4,025   

Tupperware Brands Corp.

        215,700   
     

 

 

CONSUMER SERVICES - 3.0%

     
3,640   

McDonald’s Corp.

        333,970   
     

 

 

DIVERSIFIED FINANCIALS - 2.5%

     
6,865   

JPMorgan Chase & Co.

        277,895   
     

 

 

ENERGY - 7.1%

     
3,585   

Chevron Corp.

        417,868   
5,255   

Royal Dutch Shell PLC, ADR

        374,682   
     

 

 
           792,550   
     

 

 

FOOD, BEVERAGE & TOBACCO - 12.9%

     
2,710   

Diageo PLC, ADR

        305,498   
4,480   

HJ Heinz Co.(a)

        250,656   
7,060   

Kellogg Co.

        364,720   
3,605   

PepsiCo, Inc.

        255,126   
7,040   

Unilever NV

        249,779   
     

 

 
           1,425,779   
     

 

 

HOUSEHOLD & PERSONAL PRODUCTS - 2.3%

     
3,650   

Procter & Gamble Co. (The)

        253,164   
     

 

 

INSURANCE - 2.3%

     
7,205   

Arthur J. Gallagher & Co.

        258,083   
     

 

 

MATERIALS - 7.5%

     
8,810   

Packaging Corp. of America

        319,803   
7,345   

Sonoco Products Co.

        227,622   
13,255   

Worthington Industries, Inc.

        287,103   
     

 

 
           834,528   
     

 

 

MEDIA - 2.8%

     
8,645   

CBS Corp., Class B

        314,073   
     

 

 

PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES - 10.6%

     
4,290   

Abbott Laboratories

        294,122   
5,275   

GlaxoSmithKline PLC, ADR

        243,916   
5,445   

Johnson & Johnson

        375,215   
4,275   

Novartis AG, ADR

        261,886   
     

 

 
           1,175,139   
     

 

 

             Shares            

        Value ($)  
  

 

     

 

 

 

RETAILING - 3.0%

     
5,535   

Home Depot, Inc. (The)

        334,148   
     

 

 

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.9%

     
6,540   

Microchip Technology, Inc.

        214,120   
     

 

 

SOFTWARE & SERVICES - 2.3%

     
7,765   

Paychex, Inc.

        258,497   
     

 

 

TELECOMMUNICATION SERVICES - 6.6%

     
12,010   

AT&T, Inc.

        452,777   
6,225   

Verizon Communications, Inc.

        283,673   
     

 

 
           736,450   
     

 

 

TRANSPORTATION - 2.1%

     
3,215   

United Parcel Service, Inc., Class B

        230,098   
     

 

 

UTILITIES - 6.5%

     
3,190   

ITC Holdings Corp.(a)

        241,100   
4,350   

National Fuel Gas Co.

        235,073   
5,315   

Southern Co. (The)

        244,968   
     

 

 
           721,141   
     

 

 
  

Total Common Stock
(Cost $8,988,130)

        10,074,034   
     

 

 

Other Investments - 2.4%

     
4,090   

iShares Dow Jones US Real Estate Index Fund, ETF

        263,355   
     

 

 
  

Total Other Investments
(Cost $235,719)

        263,355   
     

 

 

Registered Investment
Company - 5.2%

     
581,353   

Federated Prime Obligations Fund

        581,353   
     

 

 
  

Total Registered Investment
Company
(Cost $581,353)

        581,353   
     

 

 

Total Investments - 98.3%
(Cost $9,805,202)

        10,918,742   
     

 

 

Other Assets & Liabilities,
Net - 1.7%

        187,359   
     

 

 

Net Assets - 100.0%

        11,106,101   
     

 

 

 

(a) Securities (or a portion of securities) on loan. As of September 30, 2012, the market value of securities loaned was $491,756. The loaned securities were secured with cash collateral of $500,515. See Note 5.

 

ADR    American Depositary Receipt
ETF    Exchange Traded Fund
PLC    Public Limited Company
 

 

See accompanying Notes to Financial Statements  |  53


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis Premier Growth Equity Fund

 

             Shares            

        Value ($)  
  

 

  

 

  

 

 

 

Common Stock - 94.5%

     

CAPITAL GOODS - 3.2%

     
88,382   

Dover Corp.

        5,257,845   
     

 

 

CONSUMER SERVICES - 1.5%

     
50,990   

Las Vegas Sands Corp.

        2,364,406   
     

 

 

DIVERSIFIED FINANCIALS - 7.4%

     
98,581   

CME Group, Inc.

        5,648,691   
25,835   

Goldman Sachs Group, Inc. (The)

        2,936,923   
82,944   

State Street Corp.

        3,480,330   
     

 

 
           12,065,944   
     

 

 

ENERGY - 5.4%

     
27,195   

Anadarko Petroleum Corp.

        1,901,474   
95,182   

Schlumberger, Ltd.

        6,884,514   
     

 

 
           8,785,988   
     

 

 

FOOD, BEVERAGE & TOBACCO - 3.3%

     
75,465   

PepsiCo, Inc.

        5,340,658   
     

 

 

HEALTH CARE EQUIPMENT &
SERVICES - 8.3%

     
106,739   

Covidien PLC

        6,342,431   
114,218   

Express Scripts Holding Co.(a)

        7,158,042   
     

 

 
           13,500,473   
     

 

 

MATERIALS - 2.9%

     
52,350   

Monsanto Co.

        4,764,897   
     

 

 

MEDIA - 9.1%

     
78,185   

DIRECTV, Class A(a)

        4,101,585   
82,264   

Discovery Communications, Inc., Class C(a)

        4,610,075   
109,457   

Liberty Global, Inc., Class C(a)

        6,175,565   
     

 

 
           14,887,225   
     

 

 

PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES - 5.6%

     
57,789   

Amgen, Inc.(b)

        4,872,768   
64,587   

Gilead Sciences, Inc.(a)

        4,284,056   
     

 

 
           9,156,824   
     

 

 

REAL ESTATE - 2.3%

     
50,991   

American Tower Corp., REIT

        3,640,247   
6,800   

CBRE Group, Inc.(a)

        125,188   
     

 

 
           3,765,435   
     

 

 

RETAILING - 7.5%

     
8,498   

Amazon.com, Inc.(a)

        2,161,211   
40,792   

Bed Bath & Beyond, Inc.(a)(b)

        2,569,896   
46,231   

Dick’s Sporting Goods, Inc.

        2,397,077   
169,967   

Lowe’s Cos., Inc.

        5,139,802   
     

 

 
           12,267,986   
     

 

 

SOFTWARE & SERVICES - 23.3%

     
44,871   

Baidu, Inc., ADR(a)

        5,241,830   
129,856   

eBay, Inc.(a)

        6,286,330   
3,399   

Google, Inc., Class A(a)

        2,564,546   
34,673   

Intuit, Inc.

        2,041,546   
125,776   

Microsoft Corp.

        3,745,609   

             Shares            

        Value ($)  
  

 

  

 

  

 

 

 

SOFTWARE & SERVICES — (continued)

     
67,987   

Oracle Corp.

        2,140,911   
135,974   

Paychex, Inc.

        4,526,574   
42,832   

Visa, Inc., Class A

        5,751,482   
310,700   

Western Union Co. (The)

        5,660,954   
     

 

 
           37,959,782   
     

 

 

TECHNOLOGY HARDWARE &
EQUIPMENT - 12.2%

     
16,997   

Apple, Inc.

        11,341,418   
98,581   

Cisco Systems, Inc.

        1,881,911   
106,739   

Qualcomm, Inc.

        6,670,120   
     

 

 
           19,893,449   
     

 

 

TRANSPORTATION - 2.5%

     
55,749   

United Parcel Service, Inc.,
Class B

        3,989,957   
     

 

 
  

Total Common Stock
(Cost $109,196,819)

        154,000,869   
     

 

 

Other Investments - 0.0%

     
9,098   

GEI Investment Fund(c)

        11,190   
     

 

 
  

Total Other Investments
(Cost $9,098)

        11,190   
     

 

 

Registered Investment
Company - 5.5%

     
8,887,596   

Federated Prime Obligations Fund

        8,887,596   
     

 

 
  

Total Registered Investment Company
(Cost $8,887,596)

        8,887,596   
     

 

 

Total Investments - 100.0%
(Cost $118,093,513)

        162,899,655   
     

 

 

Other Assets & Liabilities,
Net - 0.0%

        66,118   
     

 

 

Net Assets - 100.0%

        162,965,773   
     

 

 

 

(a) Non-income producing security.
(b) At September 30, 2012, all or portion of this security was pledged as collateral requirements for futures contracts and/or TBA’s.
(c) The security is a private fund.

 

ADR    American Depositary Receipt
PLC    Public Limited Company
REIT    Real Estate Investment Trust
TBA    To be announced

The Fund had the following futures contracts, brokered by Royal Bank of Scotland, open at September 30, 2012:

 

Description  

Expiration

Date

  Number
of
Contracts
  Notional
Value
  Unrealized
Appreciation
(Depreciation)

Long Futures:

               

S&P 500 Emini Index Futures

      December 2012         50       $ 3,585,625       $ (61,685 )
               

 

 

 
 

 

54  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis Small-Cap Equity Fund

 

             Shares            

        Value ($)  
  

 

  

 

  

 

 

 

Common Stock - 95.3%

     

BANKS - 5.4%

     
3,700   

Bryn Mawr Bank Corp.

        83,028   
2,700   

Community Bank System, Inc.

        76,113   
4,125   

Cullen/Frost Bankers, Inc.

        236,899   
7,450   

Fulton Financial Corp.

        73,457   
2,800   

Iberiabank Corp.

        128,240   
3,000   

Independent Bank Corp.

        90,270   
7,350   

Prosperity Bancshares, Inc.

        313,257   
4,400   

Sterling Bancorp

        43,648   
4,500   

SVB Financial Group(a)

        272,070   
8,800   

UMB Financial Corp.

        428,384   
3,700   

Washington Trust Bancorp, Inc.

        97,199   
3,500   

Westamerica Bancorporation(b)

        164,675   
     

 

 
           2,007,240   
     

 

 

CAPITAL GOODS - 9.5%

     
1,500   

Actuant Corp., Class A

        42,930   
11,175   

Applied Industrial Technologies, Inc.

        462,980   
5,900   

Brady Corp., Class A

        172,752   
2,900   

CLARCOR, Inc.

        129,427   
6,600   

EnPro Industries, Inc.(a)

        237,666   
3,225   

ESCO Technologies, Inc.

        125,291   
2,900   

Esterline Technologies Corp.(a)

        162,806   
3,325   

Harsco Corp.

        68,262   
5,900   

IDEX Corp.

        246,443   
4,400   

Kaydon Corp.

        98,296   
3,325   

Mueller Industries, Inc.

        151,188   
2,060   

Polypore International, Inc.(a)(b)

        72,821   
2,500   

Proto Labs, Inc.(a)

        84,550   
10,700   

Quanta Services, Inc.(a)

        264,290   
5,400   

Raven Industries, Inc.

        158,922   
700   

RBC Bearings, Inc.(a)

        33,670   
5,100   

Robbins & Myers, Inc.

        303,960   
3,650   

Teledyne Technologies, Inc.(a)(b)

        231,374   
12,500   

Trimas Corp.(a)

        301,375   
5,875   

Woodward, Inc.

        199,632   
     

 

 
           3,548,635   
     

 

 

COMMERCIAL & PROFESSIONAL
SERVICES - 1.9%

     
7,300   

ABM Industries, Inc.

        138,189   
11,800   

Healthcare Services Group, Inc.

        269,866   
6,250   

Herman Miller, Inc.

        121,500   
4,400   

Mistras Group, Inc.(a)

        102,080   
4,350   

Resources Connection, Inc.

        57,028   
     

 

 
           688,663   
     

 

 

CONSUMER DURABLES & APPAREL - 3.4%

     
5,250   

Deckers Outdoor Corp.(a)(b)

        192,360   
10,325   

Jarden Corp.

        545,573   
2,225   

Maidenform Brands, Inc.(a)

        45,568   
2,900   

Tupperware Brands Corp.

        155,411   
7,300   

Wolverine World Wide, Inc.

        323,901   
     

 

 
           1,262,813   
     

 

 

CONSUMER SERVICES - 1.9%

     
5,250   

Cracker Barrel Old Country Store, Inc.

        352,328   
5,900   

K12, Inc.(a)(b)

        119,180   
2,900   

Lincoln Educational Services Corp.

        12,179   
1,475   

Matthews International Corp., Class A

        43,984   

             Shares            

        Value ($)  
  

 

     

 

 

 

CONSUMER SERVICES — (continued)

     
1,500   

Strayer Education, Inc.(b)

        96,525   
20,050   

Wendy’s Co. (The)

        91,228   
     

 

 
           715,424   
     

 

 

DIVERSIFIED FINANCIALS - 2.1%

     
7,300   

Financial Engines, Inc.(a)(b)

        173,959   
8,860   

GFI Group, Inc.

        28,175   
10,950   

Raymond James Financial, Inc.

        401,318   
5,900   

Waddell & Reed Financial, Inc.,
Class A

        193,343   
     

 

 
           796,795   
     

 

 

ENERGY - 7.4%

     
7,300   

Approach Resources, Inc.(a)

        219,949   
1,965   

Dril-Quip, Inc.(a)

        141,244   
6,775   

Gulfport Energy Corp.(a)

        211,786   
14,700   

Key Energy Services, Inc.(a)

        102,900   
4,600   

Lufkin Industries, Inc.(b)

        247,572   
11,000   

Northern Oil and Gas, Inc.(a)(b)

        186,890   
5,800   

Oasis Petroleum, Inc.(a)

        170,926   
5,190   

Oil States International, Inc.(a)

        412,397   
2,500   

PDC Energy, Inc.(a)

        79,075   
33,450   

Pioneer Energy Services Corp.(a)

        260,576   
19,000   

Resolute Energy Corp.(a)(b)

        168,530   
5,425   

SM Energy Co.

        293,547   
8,800   

Superior Energy Services, Inc.(a)

        180,576   
14,500   

Tetra Technologies, Inc.(a)

        87,725   
     

 

 
           2,763,693   
     

 

 

FOOD & STAPLES RETAILING - 0.9%

     
7,300   

Harris Teeter Supermarkets, Inc.

        283,532   
3,850   

Spartan Stores, Inc.

        58,944   
     

 

 
           342,476   
     

 

 

FOOD, BEVERAGE & TOBACCO - 3.7%

     
17,600   

Flowers Foods, Inc.

        355,168   
4,400   

Lancaster Colony Corp.

        322,300   
6,025   

Smithfield Foods, Inc.(a)

        118,391   
10,300   

Snyders-Lance, Inc.

        257,500   
5,800   

TreeHouse Foods, Inc.(a)

        304,500   
     

 

 
           1,357,859   
     

 

 

HEALTH CARE EQUIPMENT &
SERVICES - 11.6%

     
20,000   

Bio-Reference Labs, Inc.(a)(b)

        571,600   
2,355   

Computer Programs & Systems, Inc.

        130,820   
8,000   

HMS Holdings Corp.(a)(b)

        267,440   
7,400   

Integra LifeSciences Holdings Corp.(a)

        304,140   
10,300   

Masimo Corp.(a)(b)

        249,054   
3,700   

Medidata Solutions, Inc.(a)

        153,550   
5,550   

Mednax, Inc.(a)

        413,198   
9,750   

Molina Healthcare, Inc.(a)

        245,212   
10,230   

NuVasive, Inc.(a)

        234,369   
9,625   

Owens & Minor, Inc.

        287,595   
8,800   

Quality Systems, Inc.(b)

        163,240   
5,800   

STERIS Corp.

        205,726   
4,000   

Teleflex, Inc.

        275,360   
4,125   

Thoratec Corp.(a)

        142,725   
8,821   

VCA Antech, Inc.(a)

        174,038   
4,400   

Volcano Corp.(a)(b)

        125,708   
7,300   

West Pharmaceutical Services, Inc.

        387,411   
     

 

 
           4,331,186   
     

 

 
 

 

See accompanying Notes to Financial Statements  |  55


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Small-Cap Equity Fund

 

             Shares            

        Value ($)  
  

 

     

 

 

 

Common Stock — (continued)

     

HOUSEHOLD & PERSONAL PRODUCTS - 0.7%

     
6,600   

Spectrum Brands Holdings, Inc.(a)

        264,066   
     

 

 

INSURANCE - 5.0%

     
5,800   

Allied World Assurance Co. Holdings, Ltd.

        448,050   
2,900   

Alterra Capital Holdings, Ltd.

        69,426   
4,840   

Amtrust Financial Services, Inc.(b)

        124,001   
5,900   

Argo Group International Holdings, Ltd.

        191,101   
8,000   

Aspen Insurance Holdings, Ltd.

        243,920   
5,900   

Endurance Specialty Holdings, Ltd.

        227,150   
10,475   

HCC Insurance Holdings, Inc.

        354,998   
4,300   

Navigators Group, Inc. (The)(a)

        211,668   
     

 

 
           1,870,314   
     

 

 

MATERIALS - 5.4%

     
4,400   

Aptargroup, Inc.

        227,524   
16,775   

Commercial Metals Co.

        221,430   
2,500   

Compass Minerals International, Inc.(b)

        186,475   
14,300   

Packaging Corp. of America

        519,090   
16,000   

Sensient Technologies Corp.

        588,160   
5,900   

Silgan Holdings, Inc.

        256,709   
     

 

 
           1,999,388   
     

 

 

MEDIA - 3.1%

     
12,025   

Arbitron, Inc.

        455,748   
10,175   

John Wiley & Sons, Inc., Class A

        467,541   
3,800   

Morningstar, Inc.

        238,032   
     

 

 
           1,161,321   
     

 

 

PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES - 4.4%

     
2,900   

Bio-Rad Laboratories, Inc.(a)

        309,488   
22,800   

Bruker Corp.(a)

        298,452   
4,750   

Cubist Pharmaceuticals, Inc.(a)

        226,480   
2,900   

Genomic Health, Inc.(a)

        100,601   
9,150   

ICON PLC, ADR(a)

        222,986   
8,747   

Luminex Corp.(a)

        170,042   
5,900   

Myriad Genetics, Inc.(a)

        159,241   
2,200   

Techne Corp.

        158,268   
     

 

 
           1,645,558   
     

 

 

REAL ESTATE - 3.6%

     
19,750   

BioMed Realty Trust, Inc., REIT

        369,720   
8,150   

Coresite Realty Corp., REIT

        219,561   
1,125   

Digital Realty Trust, Inc., REIT

        78,581   
20,100   

Omega Healthcare Investors, Inc., REIT

        456,873   
10,100   

Sabra Healthcare REIT, Inc., REIT

        202,101   
     

 

 
           1,326,836   
     

 

 

RETAILING - 3.6%

     
7,525   

Aaron’s, Inc.(a)

        209,270   
11,200   

Aeropostale, Inc.(a)

        151,536   
6,125   

American Eagle Outfitters, Inc.

        129,115   
6,350   

Buckle, Inc. (The)(b)

        288,480   
29,290   

LKQ Corp.(a)(b)

        541,865   
     

 

 
           1,320,266   
     

 

 

SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT - 2.5%

     
2,200   

Hittite Microwave Corp.(a)

        122,034   

             Shares            

        Value ($)  
  

 

  

 

  

 

 

 

SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT — (continued)

     
15,925   

Microsemi Corp.(a)

        319,615   
25,200   

Rudolph Technologies, Inc.(a)

        264,600   
9,300   

Semtech Corp.(a)

        233,895   
     

 

 
           940,144   
     

 

 

SOFTWARE & SERVICES - 13.1%

     
7,160   

ACI Worldwide, Inc.(a)(b)

        302,582   
8,025   

Active Network, Inc. (The)(a)

        100,553   
3,700   

Advent Software, Inc.(a)

        90,909   
8,700   

Ariba, Inc.(a)

        389,760   
10,575   

Blackbaud, Inc.

        252,954   
10,300   

Bottomline Technologies, Inc.(a)

        254,307   
4,400   

Cardtronics, Inc.(a)

        131,032   
8,800   

comScore, Inc.(a)

        134,200   
1,500   

CoStar Group, Inc.(a)

        122,310   
5,075   

Ebix, Inc.(b)

        119,821   
35,550   

Global Cash Access Holdings, Inc.(a)

        286,178   
5,800   

Jack Henry & Associates, Inc.

        219,820   
5,900   

LogMeIn, Inc.(a)

        132,337   
7,825   

MICROS Systems, Inc.(a)

        384,364   
4,400   

NeuStar, Inc., Class A(a)

        176,132   
11,100   

NIC, Inc.

        164,280   
5,800   

NICE Systems, Ltd., ADR(a)

        192,676   
15,975   

Parametric Technology Corp.(a)

        348,255   
5,900   

PROS Holdings, Inc.(a)

        112,513   
10,300   

QLIK Technologies, Inc.(a)

        230,823   
13,200   

Sapient Corp.(a)

        140,712   
1,100   

Solera Holdings, Inc.

        48,257   
13,375   

SS&C Technologies Holdings, Inc.(a)

        337,184   
2,900   

Wright Express Corp.(a)

        202,188   
     

 

 
           4,874,147   
     

 

 

TECHNOLOGY HARDWARE &
EQUIPMENT - 2.0%

     
2,045   

ADTRAN, Inc.(b)

        35,338   
2,400   

FARO Technologies, Inc.(a)

        99,168   
5,100   

Measurement Specialties, Inc.(a)

        168,198   
6,755   

National Instruments Corp.

        170,023   
7,150   

Zebra Technologies Corp., Class A(a)

        268,411   
     

 

 
           741,138   
     

 

 

TRANSPORTATION - 3.2%

     
6,575   

Genesee & Wyoming, Inc., Class A(a)(b)

        439,604   
4,400   

Hub Group, Inc., Class A(a)

        130,592   
2,200   

Landstar System, Inc.(b)

        104,016   
14,065   

Old Dominion Freight Line, Inc.(a)

        424,200   
7,300   

UTi Worldwide, Inc.

        98,331   
     

 

 
           1,196,743   
     

 

 

UTILITIES - 0.9%

     
7,950   

IDACORP, Inc.

        343,996   
     

 

 
  

Total Common Stock
(Cost $31,886,979)

        35,498,701   
     

 

 

Other Investments - 0.0%

     
6,157   

GEI Investment Fund(c)

        7,573   
     

 

 
  

Total Other Investments
(Cost $6,157)

        7,573   
     

 

 
 

 

56  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Small-Cap Equity Fund

 

Shares

        Value ($)  
  

 

  

 

  

 

 

 

Registered Investment
Company - 5.0%

     
1,873,757   

Federated Prime Obligations Fund

        1,873,757   
     

 

 
  

Total Registered Investment
Company
(Cost $1,873,757)

        1,873,757   
     

 

 

Total Investments - 100.3%
(Cost $33,766,893)

        37,380,031   
     

 

 

Liabilities in Excess of Other Assets - (0.3)%

        (119,456
     

 

 

Net Assets - 100.0%

        37,260,575   
     

 

 

 

(a) Non-income producing security.
(b) Securities (or a portion of securities) on loan. As of September 30, 2012, the market value of securities loaned was $4,493,548. The loaned securities were secured with cash collateral of $4,647,969. See Note 5.
(c) The security is a private fund.

 

ADR    American Depositary Receipt
PLC    Public Limited Company
REIT    Real Estate Investment Trust
 

 

See accompanying Notes to Financial Statements  |  57


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis Global Equity Fund

 

             Shares            

        Value ($)  
  

 

     

 

 

 

Common Stock - 92.6%

     

CANADA - 4.9%

     
15,049   

Suncor Energy, Inc.

        494,360   
7,870   

Toronto-Dominion Bank (The)(a)

        655,787   
     

 

 
           1,150,147   
     

 

 

FRANCE - 2.3%

     
3,612   

LVMH Moet Hennessy Louis Vuitton SA

        543,682   
     

 

 

GERMANY - 3.0%

     
8,598   

Adidas AG

        706,158   
     

 

 

HONG KONG - 4.6%

     
287,453   

AIA Group, Ltd.

        1,071,472   
     

 

 

ITALY - 3.3%

     
21,982   

Luxottica Group SpA

        778,547   
     

 

 

JAPAN - 4.6%

     
3,900   

FANUC Corp.

        630,617   
11,200   

Softbank Corp.

        454,910   
     

 

 
           1,085,527   
     

 

 

SOUTH KOREA - 2.8%

     
543   

Samsung Electronics Co., Ltd.

        657,604   
     

 

 

SWEDEN - 4.7%

     
30,457   

Alfa Laval AB

        553,248   
25,920   

Hexagon AB, Class B(a)

        556,620   
     

 

 
           1,109,868   
     

 

 

SWITZERLAND - 4.5%

     
16,832   

Nestle SA

        1,062,074   
     

 

 

UNITED KINGDOM - 14.4%

     
40,113   

BG Group PLC

        809,683   
19,738   

BHP Billiton PLC

        613,556   
32,300   

Diageo PLC

        907,292   
46,358   

Standard Chartered PLC

        1,048,028   
     

 

 
           3,378,559   
     

 

 

UNITED STATES - 43.5%

     
9,397   

American Tower Corp., REIT

        670,852   
7,145   

CME Group, Inc.

        409,408   
6,366   

Cummins, Inc.

        587,009   
1,187   

Google, Inc., Class A(b)

        895,592   
12,922   

Honeywell International, Inc.

        772,090   
16,843   

Johnson & Johnson

        1,160,651   
5,051   

Monsanto Co.

        459,742   
6,798   

PepsiCo, Inc.

        481,094   
15,073   

Qualcomm, Inc.

        941,912   
7,919   

Schlumberger, Ltd.

        572,781   
11,682   

Thermo Fisher Scientific, Inc.

        687,252   
20,453   

US Bancorp

        701,538   
15,784   

Verizon Communications, Inc.

        719,277   
4,446   

Visa, Inc., Class A

        597,009   
8,331   

Yum! Brands, Inc.

        552,679   
     

 

 
           10,208,886   
     

 

 
  

Total Common Stock
(Cost $19,482,345)

        21,752,524   
     

 

 

             Shares            

        Value ($)  
  

 

     

 

 

 

Preferred Stock - 1.9%

     

BRAZIL - 1.9%

     
10,057   

Cia Brasileira de Distribuicao Grupo Pao de Acucar

        447,677   
     

 

 
  

Total Preferred Stock
(Cost $384,824)

        447,677   
     

 

 

Other Investments - 2.3%

     
19,305   

GEI Investment Fund(c)

        23,746   
4,321   

iShares MSCI EAFE Index Fund, ETF

        229,013   
1,771   

SPDR S&P 500 ETF Trust

        254,900   
616   

Vanguard MSCI Emerging Markets, ETF

        25,717   
     

 

 
  

Total Other Investments
(Cost $530,315)

        533,376   
     

 

 

Registered Investment
Company - 3.0%

     
696,787   

Federated Prime Obligations Fund

        696,787   
     

 

 
  

Total Registered Investment
Company
(Cost $696,787)

        696,787   
     

 

 

Total Investments - 99.8%
(Cost $21,094,271)

        23,430,364   
     

 

 

Other Assets & Liabilities,
Net - 0.2%

        50,402   
     

 

 

Net Assets - 100.0%

        23,480,766   
     

 

 

 

(a) Securities (or a portion of securities) on loan. As of September 30, 2012, the market value of securities loaned was $870,552. The loaned securities were secured with cash collateral of $918,956. See Note 5.
(b) Non-income producing security.
(c) The security is a private fund.

 

EAFE    Europe, Australia and Far East
ETF    Exchange Traded Fund
MSCI    Morgan Stanley Capital International
PLC    Public Limited Company
REIT    Real Estate Investment Trust
SPDR    Standard & Poor’s Depositary Receipt
 

 

58  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Global Equity Fund

 

 Industry    Percentage (based
on total investments)

Capital Goods

   10.8%

Food, Beverage & Tobacco

   10.4%

Banks

   10.3%

Consumer Durables & Apparel

     8.6%

Energy

     8.0%

Pharmaceuticals, Biotechnology & Life Sciences

     7.9%

Technology Hardware & Equipment

     6.4%

Software & Services

     6.4%

Telecommunication Services

     5.0%

Materials

     4.6%

Insurance

     4.6%

Real Estate

     2.9%

Semiconductors & Semiconductor Equipment

     2.8%

Consumer Services

     2.4%

Food & Staples Retailing

     1.9%

Diversified Financials

     1.7%
  

 

   94.7%
  

 

 

 Other Instruments    Percentage (based
on total investments)

Other Investments

     2.3%

Registered Investment Company

     3.0%
  

 

     5.3%
  

 

   100.0%
  

 

 

 

See accompanying Notes to Financial Statements  |  59


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis International Equity Fund

 

             Shares            

  

Value ($)

 
  

 

  

 

 

 

Common Stock - 92.8%

  

AUSTRALIA - 2.1%

  
20,174   

Brambles, Ltd.

     147,272   
2,371   

CSL, Ltd.

     113,418   
     

 

 

 
        260,690   
     

 

 

 

BELGIUM - 1.2%

  
1,722   

Anheuser-Busch InBev NV

     146,590   
     

 

 

 

BRAZIL - 0.6%

  
3,540   

Petroleo Brasileiro SA, ADR

     78,128   
     

 

 

 

CANADA - 3.0%

  
1,383   

Canadian Natural Resources, Ltd.

     42,631   
988   

Cenovus Energy, Inc.

     34,451   
3,710   

Potash Corp. of Saskatchewan, Inc.

     161,114   
4,046   

Suncor Energy, Inc.

     132,981   
     

 

 

 
        371,177   
     

 

 

 

CHINA - 1.7%

  
1,866   

Baidu, Inc., ADR(a)

     217,986   
     

 

 

 

FRANCE - 8.0%

  
7,327   

AXA SA

     109,250   
2,684   

BNP Paribas SA

     127,691   
1,806   

Cap Gemini SA

     76,499   
1,916   

Cie Generale d’Optique Essilor International SA

     179,620   
929   

LVMH Moet Hennessy Louis Vuitton SA

     139,834   
5,994   

Safran SA

     215,801   
983   

Total SA

     48,815   
1,348   

Vallourec SA

     57,142   
1,380   

Vinci SA

     58,845   
     

 

 

 
            1,013,497   
     

 

 

 

GERMANY - 11.4%

  
665   

Adidas AG

     54,617   
1,650   

Bayer AG

     141,862   
3,812   

Deutsche Bank AG

     150,778   
2,202   

Fresenius SE & Co. KGaA

     255,923   
2,733   

HeidelbergCement AG

     143,347   
1,781   

Linde AG

     307,029   
4,337   

SAP AG

     307,490   
765   

Siemens AG

     76,382   
     

 

 

 
        1,437,428   
     

 

 

 

HONG KONG - 2.5%

  
69,552   

AIA Group, Ltd.

     259,253   
7,778   

Wharf Holdings, Ltd.

     54,022   
     

 

 

 
        313,275   
     

 

 

 

INDIA - 0.3%

  
1,294   

Larsen & Toubro, Ltd., GDR

     39,175   
     

 

 

 

IRELAND - 1.6%

  
3,150   

Experian PLC

     52,341   
11,402   

WPP PLC

     154,937   
     

 

 

 
        207,278   
     

 

 

 

ITALY - 2.2%

  
6,062   

ENI SpA

     132,735   
4,014   

Luxottica Group SpA

     142,166   
     

 

 

 
        274,901   
     

 

 

 

             Shares            

  

Value ($)

 
  

 

  

 

 

 

JAPAN - 15.3%

  
2,600   

Astellas Pharma, Inc.

     132,506   
20,910   

Bank of Yokohama, Ltd. (The)

     99,712   
900   

Daito Trust Construction Co., Ltd.

     90,810   
1,000   

FANUC Corp.

     161,697   
3,000   

JGC Corp.

     100,450   
12,000   

Kubota Corp.

     121,851   
2,200   

Mitsubishi Corp.

     40,126   
17,000   

Mitsubishi Heavy Industries, Ltd.

     73,856   
2,700   

Mitsui & Co., Ltd.

     38,105   
3,599   

Nikon Corp.

     99,366   
400   

SMC Corp.

     64,679   
5,700   

Softbank Corp.

     231,517   
6,700   

Sony Financial Holdings, Inc.

     115,226   
4,000   

Sumitomo Realty & Development Co., Ltd.

     106,530   
6,224   

Toyota Motor Corp.

     243,199   
3,600   

Unicharm Corp.

     207,301   
     

 

 

 
            1,926,931   
     

 

 

 

NETHERLANDS - 2.4%

  
20,014   

ING Groep NV(a)

     158,325   
3,936   

Unilever NV

     139,403   
     

 

 

 
        297,728   
     

 

 

 

NORWAY - 0.6%

  
3,356   

Subsea 7 SA

     77,498   
     

 

 

 

SINGAPORE - 1.9%

  
15,305   

United Overseas Bank, Ltd.

     245,164   
     

 

 

 

SWEDEN - 2.8%

  
5,615   

Alfa Laval AB

     101,996   
5,337   

Hexagon AB, Class B

     114,610   
14,904   

Telefonaktiebolaget LM Ericsson, Class B

     136,047   
     

 

 

 
        352,653   
     

 

 

 

SWITZERLAND - 8.6%

  
5,081   

Nestle SA

     320,604   
3,895   

Novartis AG

     238,516   
660   

Roche Holding AG

     123,390   
169   

Swatch Group AG (The)

     67,471   
544   

Syngenta AG

     203,465   
544   

Zurich Financial Services AG

     135,566   
     

 

 

 
        1,089,012   
     

 

 

 

TAIWAN - 2.3%

  
18,014   

Taiwan Semiconductor Manufacturing Co., Ltd., ADR

     284,981   
     

 

 

 

UNITED KINGDOM - 24.3%

  
4,351   

Aggreko PLC

     162,512   
12,547   

BG Group PLC

     253,262   
6,493   

BHP Billiton PLC

     201,835   
11,495   

Capita Group PLC (The)

     143,764   
12,148   

Diageo PLC

     341,232   
33,274   

HSBC Holdings PLC

     308,040   
682   

Intertek Group PLC

     30,176   
111,320   

Lloyds Banking Group PLC(a)

     69,801   
20,981   

National Grid PLC

     231,402   
16,311   

Prudential PLC

     211,108   
2,795   

Reckitt Benckiser Group PLC

     160,902   
3,981   

Rio Tinto PLC

     185,463   
6,840   

Royal Dutch Shell PLC, Class A

     236,590   
9,209   

Standard Chartered PLC

     208,190   
9,605   

TESCO PLC

     51,494   
 

 

60  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis International Equity Fund

 

             Shares            

  

Value ($)

 
  

 

  

 

 

 

Common Stock — (continued)

  

UNITED KINGDOM — (continued)

  
91,698   

Vodafone Group PLC

     260,241   
     

 

 

 
        3,056,012   
     

 

 

 
  

Total Common Stock
(Cost $10,798,105)

     11,690,104   
     

 

 

 

Preferred Stock - 1.5%

  

GERMANY - 1.5%

  
1,035   

Volkswagen AG

     189,011   
     

 

 

 
  

Total Preferred Stock
(Cost $170,733)

     189,011   
     

 

 

 

Other Investments - 0.1%

  
11,693   

GEI Investment Fund(b)

     14,383   
     

 

 

 
  

Total Other Investments
(Cost $11,693)

     14,383   
     

 

 

 

Registered Investment Company - 5.0%

  
621,636   

Federated Prime Obligations Fund

     621,636   
     

 

 

 
  

Total Registered Investment Company
(Cost $621,636)

     621,636   
     

 

 

 

Total Investments - 99.4%

     12,515,134   
     

 

 

 
      (Cost $11,602,167)   

Other Assets & Liabilities,
Net - 0.6%

     81,480   
     

 

 

 
Net Assets - 100.0%          12,596,614   
     

 

 

 

 

(a) Non-income producing security.
(b) The security is a private fund.

 

ADR

   American Depositary Receipt

GDR

   Global Depositary Receipt

PLC

   Public Limited Company

 

The Fund had the following futures contracts, brokered by Royal Bank of Scotland, open at September 30, 2012:

 

  Description   

Expiration

Date

   Number
of
Contracts
   Notional
Value
   Unrealized
Appreciation
(Depreciation)

Long Futures:

                   

DJ Euro Stoxx 50 Index Futures

       December 2012          2          63,167        $ (2,388 )

FTSE 100 Index Futures

       December 2012          2          184,508          (4,691 )

Topix Index Futures

       December 2012          1          94,473          (2,393 )
                   

 

 

 
                    $ (9,472 )
                   

 

 

 

 

  Industry    Percentage (based
on  total investments)

Materials

     9.6%

Capital Goods

     9.2%

Banks

     8.5%

Energy

     8.3%

Food, Beverage & Tobacco

     7.6%

Insurance

     6.6%

Pharmaceuticals, Biotechnology & Life Sciences

     6.0%

Software & Services

     4.8%

Commercial & Professional Services

     4.3%

Consumer Durables & Apparel

     4.0%

Telecommunication Services

     3.9%

Health Care Equipment & Services

     3.5%

Automobiles & Components

     3.5%

Household & Personal Products

     2.9%

Diversified Financials

     2.5%

Semiconductors & Semiconductor Equipment

     2.3%

Real Estate

     2.0%

Technology Hardware & Equipment

     2.0%

Utilities

     1.8%

Media

     1.2%

Food & Staples Retailing

     0.4%
  

 

   94.9%
  

 

  
  Other Investments    Percentage (based
on total investments)

Other Investments

         0.1%

Registered Investment Company

         5.0%
  

 

   100.0%
  

 

 

 

See accompanying Notes to Financial Statements  |  61


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

             Shares            

  

Value ($)

 
  

 

  

 

 

 

Domestic Equity - 37.5%

  

COMMON STOCK - 37.5%

  

AUTOMOBILES & COMPONENTS - 0.1%

  
7,321   

Ford Motor Co.

     72,185   
     

 

 

 

BANKS - 1.3%

  
27,699   

Regions Financial Corp.

     199,710   
9,742   

Standard Chartered PLC

     220,240   
18,368   

Wells Fargo & Co.

     634,247   
     

 

 

 
        1,054,197   
     

 

 

 

CAPITAL GOODS - 1.7%

  
622   

Boeing Co. (The)

     43,304   
237   

Caterpillar, Inc.

     20,391   
580   

Cooper Industries PLC

     43,535   
712   

Cummins, Inc.

     65,654   
3,553   

Deere & Co.

     293,087   
6,606   

Dover Corp.

     392,991   
3,149   

Eaton Corp.

     148,822   
6,700   

Honeywell International, Inc.

     400,325   
     

 

 

 
        1,408,109   
     

 

 

 

CONSUMER DURABLES & APPAREL - 0.2%

  
982   

LVMH Moet Hennessy Louis Vuitton SA

     147,812   
1,102   

MDC Holdings, Inc.

     42,438   
     

 

 

 
        190,250   
     

 

 

 

CONSUMER SERVICES - 0.5%

  
1,948   

Darden Restaurants, Inc.

     108,601   
3,469   

Las Vegas Sands Corp.

     160,858   
1,533   

McDonald’s Corp.

     140,653   
     

 

 

 
        410,112   
     

 

 

 

DIVERSIFIED FINANCIALS - 2.8%

  
5,656   

American Express Co.

     321,600   
5,811   

Ameriprise Financial, Inc.

     329,426   
1,425   

Citigroup, Inc.

     46,626   
9,664   

CME Group, Inc.

     553,747   
414   

Franklin Resources, Inc.

     51,779   
1,757   

Goldman Sachs Group, Inc. (The)

     199,736   
13,917   

Invesco, Ltd. ADR

     347,786   
5,364   

JPMorgan Chase & Co.

     217,135   
5,642   

State Street Corp.

     236,738   
     

 

 

 
            2,304,573   
     

 

 

 

ENERGY - 3.3%

  
4,343   

Anadarko Petroleum Corp.

     303,663   
5,502   

Chevron Corp.

     641,313   
1,702   

Exxon Mobil Corp.(a)

     155,648   
1,662   

Halliburton Co.

     55,993   
2,058   

Hess Corp.

     110,556   
4,326   

Marathon Oil Corp.

     127,920   
4,534   

Occidental Petroleum Corp.

     390,196   
10,622   

Schlumberger, Ltd.

     768,289   
1,865   

Spectra Energy Corp.

     54,756   
2,176   

Williams Cos., Inc. (The)

     76,095   
     

 

 

 
        2,684,429   
     

 

 

 

FOOD, BEVERAGE & TOBACCO - 2.4%

  
2,523   

Altria Group, Inc.

     84,243   
8,510   

Archer-Daniels-Midland Co.

     231,302   
6,529   

Coca-Cola Enterprises, Inc.

     204,162   
9,046   

Kraft Foods, Inc., Class A

     360,881   
12,570   

PepsiCo, Inc.

     889,579   

             Shares            

  

Value ($)

 
  

 

  

 

 

 

COMMON STOCK — (continued)

  

FOOD, BEVERAGE & TOBACCO — (continued)

  
2,312   

Philip Morris International, Inc.

     207,941   
     

 

 

 
        1,978,108   
     

 

 

 

HEALTH CARE EQUIPMENT & SERVICES - 2.4%

  
4,353   

Cardinal Health, Inc.

     169,636   
13,306   

Covidien PLC

     790,643   
11,569   

Express Scripts Holding Co.(b)

     725,029   
2,077   

HCA Holdings, Inc.

     69,060   
5,342   

Medtronic, Inc.

     230,347   
     

 

 

 
        1,984,715   
     

 

 

 

HOUSEHOLD & PERSONAL PRODUCTS - 0.4%

  
2,279   

Clorox Co.

     164,202   
1,740   

Kimberly-Clark Corp.

     149,257   
     

 

 

 
        313,459   
     

 

 

 

INSURANCE - 1.1%

  
4,137   

ACE, Ltd.

     312,757   
7,700   

American International Group, Inc.(b)

     252,483   
3,928   

Prudential Financial, Inc.

     214,115   
1,479   

Travelers Cos., Inc. (The)

     100,957   
     

 

 

 
        880,312   
     

 

 

 

MATERIALS - 1.2%

  
3,858   

Allegheny Technologies, Inc.

     123,070   
3,621   

EI du Pont de Nemours & Co.

     182,028   
3,599   

Freeport-McMoRan Copper & Gold, Inc.

     142,448   
3,561   

Monsanto Co.

     324,122   
1,150   

PPG Industries, Inc.

     132,066   
1,040   

Praxair, Inc.

     108,035   
     

 

 

 
        1,011,769   
     

 

 

 

MEDIA - 2.6%

  
1,979   

CBS Corp., Class B

     71,897   
8,310   

Comcast Corp.

     297,249   
5,318   

DIRECTV(b)

     278,982   
5,596   

Discovery Communications, Inc., Class C(b)

     313,600   
7,446   

Liberty Global, Inc., Class C(b)

     420,103   
3,205   

Nielsen Holdings NV(b)

     96,086   
4,155   

Omnicom Group, Inc.

     214,232   
7,558   

Time Warner, Inc.

     342,604   
2,770   

Walt Disney Co. (The)

     144,816   
     

 

 

 
            2,179,569   
     

 

 

 

PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES - 2.9%

  
2,018   

Agilent Technologies, Inc.

     77,592   
5,909   

Amgen, Inc.(a)

     498,247   
5,916   

Bristol-Myers Squibb Co.

     199,665   
4,394   

Gilead Sciences, Inc.(b)

     291,454   
7,562   

Johnson & Johnson

     521,097   
4,437   

Merck & Co., Inc.

     200,109   
4,353   

PerkinElmer, Inc.

     128,283   
19,399   

Pfizer, Inc.

     482,065   
     

 

 

 
        2,398,512   
     

 

 

 

REAL ESTATE - 0.7%

  
3,469   

American Tower Corp. REIT

     247,652   
460   

CBRE Group, Inc., Class A(b)

     8,469   
 

 

62  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

             Shares            

  

Value ($)

 
  

 

  

 

 

 

Domestic Equity — (continued)

  

COMMON STOCK — (continued)

  

REAL ESTATE — (continued)

  
2,088   

HCP, Inc. REIT

     92,874   
403   

Public Storage REIT

     56,086   
1,492   

Rayonier, Inc. REIT

     73,123   
767   

Simon Property Group, Inc. REIT

     116,438   
     

 

 

 
        594,642   
     

 

 

 

RETAILING - 1.8%

  
578   

Amazon.com, Inc.(b)

     146,997   
2,775   

Bed Bath & Beyond, Inc.(a)(b)

     174,825   
3,145   

Dick’s Sporting Goods, Inc.

     163,068   
1,345   

Genuine Parts Co.

     82,085   
2,697   

Home Depot, Inc. (The)

     162,818   
18,121   

Lowe’s Cos., Inc.

     547,979   
3,264   

Macy’s, Inc.

     122,792   
1,385   

Target Corp.

     87,906   
     

 

 

 
            1,488,470   
     

 

 

 

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.6%

  
1,880   

Altera Corp.

     63,892   
1,781   

Analog Devices, Inc.

     69,797   
5,916   

Intel Corp.(a)

     134,175   
1,450   

Microchip Technology, Inc.

     47,473   
5,133   

Texas Instruments, Inc.

     141,414   
     

 

 

 
        456,751   
     

 

 

 

SOFTWARE & SERVICES - 5.1%

  
8,834   

eBay, Inc.(b)

     427,654   
587   

Google, Inc., Class A(b)

     442,892   
2,421   

International Business Machines Corp.(a)

     502,236   
2,359   

Intuit, Inc.

     138,898   
31,390   

Microsoft Corp.

     934,794   
14,122   

Oracle Corp.

     444,702   
14,122   

Paychex, Inc.

     470,121   
2,914   

Visa, Inc., Class A

     391,292   
26,081   

Western Union Co. (The)

     475,196   
     

 

 

 
        4,227,785   
     

 

 

 

TECHNOLOGY HARDWARE & EQUIPMENT - 4.1%

  
2,571   

Apple, Inc.

     1,715,525   
36,290   

Cisco Systems, Inc.(a)

     692,776   
16,184   

Qualcomm, Inc.

     1,011,338   
     

 

 

 
        3,419,639   
     

 

 

 

TELECOMMUNICATION SERVICES - 0.5%

  
7,204   

AT&T, Inc.

     271,591   
3,188   

Verizon Communications, Inc.

     145,277   
     

 

 

 
        416,868   
     

 

 

 

TRANSPORTATION - 1.1%

  
5,738   

CSX Corp.

     119,064   
1,305   

Union Pacific Corp.

     154,904   
8,382   

United Parcel Service, Inc., Class B

     599,900   
     

 

 

 
        873,868   
     

 

 

 

UTILITIES - 0.7%

  
12,267   

AES Corp. (The)(b)

     134,569   
1,823   

American Water Works Co., Inc.

     67,560   
6,173   

Calpine Corp.(b)

     106,793   

             Shares            

  

Value ($)

 
  

 

  

 

 

 

COMMON STOCK — (continued)

  

UTILITIES — (continued)

  
2,718   

Dominion Resources, Inc.

     143,891   
3,219   

Southern Co. (The)

     148,364   
     

 

 

 
        601,177   
     

 

 

 
  

Total Domestic Equity
(Cost $27,238,449)

         30,949,499   
     

 

 

 

Foreign Equity - 16.3%

  

COMMON STOCK - 16.1%

  

AUTOMOBILES & COMPONENTS - 0.3%

  
900   

Bridgestone Corp.

     20,985   
6,606   

Toyota Motor Corp.

     258,126   
     

 

 

 
        279,111   
     

 

 

 

BANKS - 1.1%

  
21,858   

Bank of Yokohama, Ltd. (The)

     104,233   
2,839   

BNP Paribas SA

     135,065   
35,198   

HSBC Holdings PLC

     325,852   
95,922   

Lloyds Banking Group PLC(b)

     60,146   
16,360   

United Overseas Bank, Ltd.

     262,064   
     

 

 

 
        887,360   
     

 

 

 

CAPITAL GOODS - 1.6%

  
3,897   

ABB, Ltd. ADR

     72,874   
5,940   

Alfa Laval AB

     107,900   
1,100   

FANUC Corp.

     177,866   
3,000   

JGC Corp.

     100,450   
12,000   

Kubota Corp.

     121,851   
1,541   

Larsen & Toubro, Ltd., GDR

     46,652   
2,400   

Mitsubishi Corp.

     43,774   
18,000   

Mitsubishi Heavy Industries, Ltd.

     78,201   
2,900   

Mitsui & Co., Ltd.

     40,928   
6,340   

Safran SA

     228,258   
809   

Siemens AG

     80,775   
400   

SMC Corp.(c)

     64,679   
1,426   

Vallourec SA

     60,449   
1,459   

Vinci SA

     62,214   
     

 

 

 
        1,286,871   
     

 

 

 

COMMERCIAL & PROFESSIONAL SERVICES - 0.7%

  
4,602   

Aggreko PLC

     171,887   
21,341   

Brambles, Ltd.

     155,792   
12,160   

Capita Group PLC (The)

     152,081   
3,329   

Experian PLC

     55,316   
721   

Intertek Group PLC

     31,901   
     

 

 

 
        566,977   
     

 

 

 

CONSUMER DURABLES & APPAREL - 0.5%

  
703   

Adidas AG

     57,738   
4,245   

Luxottica Group SpA

     150,347   
3,799   

Nikon Corp.

     104,888   
179   

Swatch Group AG (The)

     71,463   
     

 

 

 
        384,436   
     

 

 

 

DIVERSIFIED FINANCIALS - 0.4%

  
4,208   

Deutsche Bank AG

     166,441   
21,171   

ING Groep NV CVA(b)

     167,478   
     

 

 

 
        333,919   
     

 

 

 

ENERGY - 1.5%

  
13,272   

BG Group PLC

     267,896   
1,463   

Canadian Natural Resources, Ltd.

     45,097   
1,045   

Cenovus Energy, Inc.

     36,439   
 

 

See accompanying Notes to Financial Statements  |  63


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

             Shares            

  

Value ($)

 
  

 

  

 

 

 

Foreign Equity — (continued)

  

COMMON STOCK — (continued)

  

ENERGY — (continued)

  

6,412   

ENI SpA

     140,399   
3,743   

Petroleo Brasileiro SA ADR

     82,608   
2,306   

Royal Dutch Shell PLC ADR

     160,059   
7,235   

Royal Dutch Shell PLC, Class A

     250,252   
3,550   

Subsea 7 SA

     81,978   
4,286   

Suncor Energy, Inc.

     140,870   
1,040   

Total SA

     51,645   
     

 

 

 
            1,257,243   
     

 

 

 

FOOD & STAPLES RETAILING - 0.1%

  

10,161   

Tesco PLC

     54,475   
     

 

 

 

FOOD, BEVERAGE & TOBACCO - 1.3%

  

1,822   

Anheuser-Busch InBev NV

     155,103   
12,850   

Diageo PLC

     360,950   
870   

Diageo PLC ADR

     98,075   
5,375   

Nestle SA

     339,155   
4,164   

Unilever NV

     147,478   
     

 

 

 
        1,100,761   
     

 

 

 

HEALTH CARE EQUIPMENT & SERVICES - 0.6%

  

2,026   

Cie Generale d’Optique Essilor International SA

     189,933   
2,330   

Fresenius SE & Co. KGaA

     270,799   
     

 

 

 
        460,732   
     

 

 

 

HOUSEHOLD & PERSONAL PRODUCTS - 0.4%

  

2,653   

Reckitt Benckiser Group PLC

     152,727   
3,800   

Unicharm Corp.(c)

     218,817   
     

 

 

 
        371,544   
     

 

 

 

INSURANCE - 1.1%

  

73,572   

AIA Group, Ltd.

     274,237   
8,164   

AXA SA

     121,730   
17,254   

Prudential PLC

     223,313   
7,100   

Sony Financial Holdings, Inc.

     122,105   
575   

Zurich Financial Services AG

     143,291   
     

 

 

 
        884,676   
     

 

 

 

MATERIALS - 1.7%

  

6,869   

BHP Billiton PLC

     213,523   
2,772   

HeidelbergCement AG

     145,394   
1,884   

Linde AG

     324,786   
3,925   

Potash Corp. of Saskatchewan, Inc.

     170,451   
2,335   

Potash Corp. of Saskatchewan, Inc.

     101,386   
4,213   

Rio Tinto PLC

     196,272   
576   

Syngenta AG

     215,433   
     

 

 

 
        1,367,245   
     

 

 

 

MEDIA - 0.2%

  

12,061   

WPP PLC

     163,892   
     

 

 

 

PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES - 1.2%

   

2,700   

Astellas Pharma, Inc.

     137,603   
1,746   

Bayer AG

     150,116   
2,508   

CSL, Ltd.

     119,971   
4,120   

Novartis AG

     252,294   
3,722   

Novartis AG ADR

     228,010   

             Shares            

  

Value ($)

 
  

 

  

 

 

 

COMMON STOCK — (continued)

  

PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES — (continued)

   

698   

Roche Holding AG

     130,494   
     

 

 

 
            1,018,488   
     

 

 

 

REAL ESTATE - 0.3%

  

900   

Daito Trust Construction Co., Ltd.

     90,810   
4,000   

Sumitomo Realty & Development Co., Ltd.

     106,530   
8,226   

Wharf Holdings, Ltd.

     57,133   
     

 

 

 
        254,473   
     

 

 

 

SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT - 0.7%

   

249   

Samsung Electronics Co., Ltd.

     301,553   
19,056   

Taiwan Semiconductor Manufacturing Co., Ltd. ADR

     301,466   
     

 

 

 
        603,019   
     

 

 

 

SOFTWARE & SERVICES - 1.2%

  

5,029   

Baidu, Inc. ADR(b)

     587,488   
1,910   

Cap Gemini SA

     80,904   
4,388   

SAP AG

     311,106   
     

 

 

 
        979,498   
     

 

 

 

TECHNOLOGY HARDWARE & EQUIPMENT - 0.3%

  

5,645   

Hexagon AB, Class B

     121,224   
15,766   

Telefonaktiebolaget LM Ericsson, Class B

     143,915   
     

 

 

 
        265,139   
     

 

 

 

TELECOMMUNICATION SERVICES - 0.6%

  

6,000   

Softbank Corp.

     243,702   
97,001   

Vodafone Group PLC

     275,291   
     

 

 

 
        518,993   
     

 

 

 

UTILITIES - 0.3%

  

22,194   

National Grid PLC

     244,780   
     

 

 

 
  

Total Common Stock
(Cost $12,379,412)

     13,283,632   
     

 

 

 

PREFERRED STOCK - 0.2%

  

AUTOMOBILES & COMPONENTS - 0.2%

  

1,095   

Volkswagen AG

     199,968   
     

 

 

 
  

Total Foreign Equity
(Cost $12,555,350)

     13,483,600   
     

 

 

 

Principal Amount ($)

  

 

 

Bonds & Notes - 29.6%

  

AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS - 0.2%

   

  

Federal Home Loan Mortgage
Corp. REMIC

  
  

(Series 3977) (Class AI)

  
94,151   

3.50%, 09/15/29(d)

     6,621   
  

(Series 3983) (Class EI)

  
94,043   

3.50%, 11/15/30(d)

     10,508   
  

(Series 2645) (Class BI)

  
9,757   

4.50%, 02/15/18(d)

     331   
 

 

64  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

Bonds & Notes — (continued)

  

AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS — (continued)

   

  

(Series 2643) (Class IM)

  
16,077   

4.50%, 03/15/18(d)

     965   
  

(Series 2590) (Class YQ)

  
3,440   

5.00%, 05/15/17(d)

     64   
  

(Series 2781) (Class CI)

  
4,765   

5.00%, 11/15/17(d)

     81   
  

(Series 2781) (Class IC)

  
10,193   

5.00%, 05/15/18(d)

     435   
  

(Series 2763) (Class JI)

  
14,544   

5.00%, 10/15/18(d)

     981   
  

(Series 2631) (Class DI)

  
20,956   

5.50%, 06/15/33(d)

     2,682   
  

(Series 3806) (Class DS)

  
109,553   

6.38%, 08/15/25(d)(e)

     15,564   
  

(Series 1980) (Class IO)

  
5,530   

7.50%, 07/15/27(d)

     1,324   
  

(Series 33) (Class D)

  
193   

8.00%, 04/15/20

     208   
  

Federal Home Loan Mortgage
Corp. STRIPS

  
  

(Series 186) (Class PO)

  
492   

0.00%, 08/01/27(f)(g)

     429   
  

(Series 147) (Class IO)

  
933   

8.00%, 02/01/23(d)

     203   
  

(Series 171) (Class IO)

  
1,040   

8.00%, 07/01/24(d)

     249   
  

Federal Home Loan Mortgage
Corp. Structured Pass Through
Securities

  
  

(Series T-58) (Class AIO)

  
223,401   

0.08%, 09/25/43(d)(e)

     1,809   
  

Federal National Mortgage Assoc.
REMIC

  
  

(Series G92-68) (Class B)

  
694   

0.00%, 12/25/22(f)(g)

     648   
  

(Series 2003-89) (Class IO)

  
89,609   

1.21%, 12/25/42(d)(e)

     2,636   
  

(Series 2012-46) (Class KI)

  
95,878   

3.50%, 05/25/27(d)

     12,672   
  

(Series 2003-64) (Class KI)

  
629   

4.50%, 05/25/18(d)

     6   
  

(Series 2003-41) (Class BI)

  
2,381   

5.00%, 08/25/17(d)

     64   
  

(Series 2003-79) (Class HI)

  
5,085   

5.00%, 10/25/22(d)

     160   
  

(Series 2003-61) (Class IJ)

  
22,773   

5.00%, 02/25/32(d)

     1,074   
  

(Series 2010-98) (Class DI)

  
147,687   

5.00%, 09/25/40(d)

     19,345   
  

(Series 2008-61) (Class SB)

  
51,624   

5.78%, 07/25/38(d)(e)

     6,314   
  

(Series 1992-77) (Class K)

  
4   

8.00%, 05/25/22(d)

     104   
  

Federal National Mortgage Assoc.
STRIPS

  
  

(Series 354) (Class 1)

  
25,208   

0.00%, 12/01/34(f)(g)

     24,593   

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS — (continued)

   

  

(Series 362) (Class 2)

  
28,823   

4.50%, 08/01/35(d)

     3,174   
  

(Series 378) (Class 1)

  
30,482   

4.50%, 01/01/36(d)

     3,579   
  

(Series 387) (Class 2)

  
24,778   

5.00%, 03/25/38(d)

     3,157   
  

(Series 387) (Class 1)

  
20,968   

5.00%, 05/25/38(d)

     2,852   
  

(Series 346) (Class 2)

  
7,355   

5.50%, 12/01/33(d)

     930   
  

(Series 252) (Class 2)

  
13,231   

7.50%, 11/01/23(d)

     2,918   
  

(Series 237) (Class 2)

  
720   

8.00%, 08/01/23(d)

     154   
  

(Series 264) (Class 2)

  
3,459   

8.00%, 07/01/24(d)

     785   
  

(Series 12) (Class 2)

  
127   

8.50%, 03/01/17(d)

     17   
  

(Series 7) (Class 2)

  
315   

8.50%, 04/01/17(d)

     47   
  

(Series 28) (Class 2)

  
49   

8.50%, 01/01/18(d)

     7   
  

(Series 150) (Class 2)

  
388   

8.50%, 07/25/22(d)

     90   
  

(Series 163) (Class 2)

  
464   

8.50%, 07/25/22(d)

     64   
  

(Series 137) (Class 2)

  
708   

9.00%, 05/25/22(d)

     149   
  

Government National Mortgage
Assoc.

  
  

(Series 2011-51) (Class NI)

  
83,518   

4.50%, 10/20/37(d)

     7,846   
  

(Series 2010-101) (Class GI)

  
84,159   

4.50%, 02/20/38(d)

     8,743   
  

(Series 2010-130) (Class PI)

  
90,495   

4.50%, 08/16/39(d)

     12,755   
  

(Series 2010-75) (Class KI)

  
74,652   

5.00%, 12/20/35(d)

     5,838   
  

(Series 2010-42) (Class IA)

  
72,119   

5.00%, 10/20/37(d)

     7,404   
     

 

 

 
  

Total Agency Collateralized
Mortgage Obligations
(Cost $220,655)

           170,579   
     

 

 

 

AGENCY MORTGAGE BACKED - 9.5%

  
  

Federal Home Loan Mortgage
Corp.

  
155,000   

2.38%, 01/13/22

     162,940   
2,220   

4.50%, 06/01/33

     2,394   
5,383   

4.50%, 02/01/35

     5,804   
17,643   

5.00%, 07/01/35

     19,794   
10,950   

5.00%, 07/01/35

     12,285   
7,336   

5.00%, 07/01/35

     8,230   
3,393   

5.00%, 07/01/35

     3,807   
157,784   

5.00%, 06/01/41

     176,253   
3,963   

5.50%, 05/01/20

     4,345   
70,863   

5.50%, 01/01/38

     79,472   
32,164   

5.50%, 04/01/39

     35,455   
501   

6.00%, 04/01/17

     541   
894   

6.00%, 06/01/17

     965   
 

 

See accompanying Notes to Financial Statements  |  65


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

Bonds & Notes — (continued)

  

AGENCY MORTGAGE BACKED — (continued)

  

1,590   

6.00%, 05/01/20

     1,765   
6,893   

6.00%, 08/01/29

     7,725   
6,620   

6.00%, 06/01/33

     7,421   
7,404   

6.00%, 09/01/33

     8,299   
6,808   

6.00%, 10/01/33

     7,631   
4,023   

6.00%, 10/01/33

     4,510   
3,800   

6.00%, 10/01/33

     4,260   
16,277   

6.00%, 11/01/33

     18,244   
4,796   

6.00%, 03/01/34

     5,376   
3,324   

6.00%, 05/01/34

     3,726   
4,303   

6.00%, 11/01/34

     4,785   
6,636   

6.00%, 12/01/34

     7,438   
5,190   

6.00%, 12/01/34

     5,817   
3,456   

6.00%, 03/01/35

     3,856   
3,504   

6.00%, 05/01/35

     3,910   
56,113   

6.00%, 06/01/37

     62,606   
61,180   

6.00%, 11/01/37

     68,259   
9,803   

6.50%, 06/01/29

     11,520   
611   

7.00%, 10/01/16

     657   
227   

7.00%, 06/01/29

     271   
528   

7.00%, 08/01/29

     632   
1,913   

7.00%, 12/01/29

     2,287   
3,491   

7.00%, 04/01/31

     4,174   
2,899   

7.00%, 07/01/34

     3,366   
4,064   

7.00%, 12/01/34

     4,720   
3,960   

7.00%, 12/01/34

     4,598   
2,940   

7.00%, 02/01/35

     3,414   
1,822   

7.00%, 08/01/36

     2,105   
6,401   

7.50%, 12/01/30

     7,849   
849   

7.50%, 09/01/33

     920   
158   

8.00%, 04/01/30

     196   
2,352   

8.00%, 11/01/30

     2,873   
315   

9.00%, 04/01/16

     346   
348   

9.00%, 07/01/16

     384   
443   

9.00%, 06/01/21

     509   
  

Federal National Mortgage Assoc.

  
310   

2.72%, 04/01/37(e)

     324   
385,000   

3.00%, TBA(h)

     406,536   
200,000   

3.50%, TBA(h)

     214,562   
420,000   

4.00%, TBA(h)

     452,616   
5,136   

4.00%, 05/01/19

     5,515   
18,750   

4.00%, 06/01/19

     20,131   
138,517   

4.00%, 01/01/41

     149,471   
167,221   

4.00%, 03/01/41

     180,498   
265,082   

4.00%, 12/01/41

     286,129   
209,395   

4.00%, 05/01/42

     233,153   
4,763   

4.50%, 05/01/18

     5,155   
11,928   

4.50%, 05/01/19

     12,913   
7,386   

4.50%, 05/01/19

     7,996   
6,945   

4.50%, 05/01/19

     7,518   
6,398   

4.50%, 05/01/19

     6,926   
7,077   

4.50%, 06/01/19

     7,661   
3,054   

4.50%, 02/01/20

     3,304   
6,588   

4.50%, 07/01/20

     7,128   
8,845   

4.50%, 08/01/20

     9,570   
3,704   

4.50%, 07/01/33

     4,029   
2,989   

4.50%, 04/01/34

     3,245   
12,436   

4.50%, 12/01/34

     13,500   
6,693   

4.50%, 12/01/34

     7,265   
339,319   

4.50%, 10/01/39

     367,490   
101,938   

4.50%, 02/01/40

     110,719   
260,945   

4.50%, 11/01/40

     283,425   
313,355   

4.50%, 01/01/41

     340,351   

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

AGENCY MORTGAGE BACKED — (continued)

  
293,519   

4.50%, 04/01/41

     318,806   
10,581   

5.00%, 07/01/20

     11,695   
30,894   

5.00%, 03/01/34

     33,957   
3,865   

5.00%, 10/01/34

     4,224   
10,410   

5.00%, 06/01/35

     11,864   
6,638   

5.00%, 06/01/35

     7,565   
29,720   

5.00%, 07/01/35

     32,541   
12,349   

5.00%, 07/01/35

     14,073   
9,816   

5.00%, 07/01/35

     10,748   
9,176   

5.00%, 07/01/35

     10,047   
8,092   

5.00%, 08/01/35

     8,861   
18,425   

5.00%, 03/01/39

     20,312   
11,986   

5.00%, 04/01/39

     13,585   
7,904   

5.00%, 04/01/39

     8,889   
241,407   

5.00%, 06/01/41

     273,603   
3,476   

5.50%, 03/01/14

     3,768   
2,336   

5.50%, 04/01/14

     2,532   
2,247   

5.50%, 05/01/14

     2,436   
309   

5.50%, 05/01/14

     335   
6,481   

5.50%, 06/01/20

     7,157   
5,203   

5.50%, 06/01/20

     5,745   
4,601   

5.50%, 06/01/20

     5,081   
4,587   

5.50%, 06/01/20

     5,066   
4,124   

5.50%, 06/01/20

     4,546   
3,879   

5.50%, 06/01/20

     4,284   
9,074   

5.50%, 07/01/20

     10,020   
8,831   

5.50%, 07/01/20

     9,752   
7,261   

5.50%, 07/01/20

     8,018   
5,434   

5.50%, 07/01/20

     6,000   
5,392   

5.50%, 07/01/20

     5,955   
5,685   

5.50%, 07/01/33

     6,405   
5,488   

5.50%, 08/01/33

     6,184   
3,296   

5.50%, 06/01/35

     3,754   
3,268   

5.50%, 06/01/35

     3,653   
2,279   

5.50%, 06/01/35

     2,595   
4,645   

5.50%, 07/01/35

     5,290   
4,809   

5.50%, 08/01/35

     5,477   
9,643   

5.50%, 11/01/35

     10,641   
42,388   

5.50%, 12/01/35

     46,756   
15,561   

5.50%, 05/01/37

     17,533   
40,434   

5.50%, 06/01/37

     44,600   
120,068   

5.50%, 08/01/37

     132,588   
11,012   

5.50%, 08/01/37

     12,146   
55,707   

5.50%, 04/01/38

     62,195   
133,255   

5.50%, 01/01/39

     146,150   
400,000   

6.00%, TBA(h)

     441,688   
777   

6.00%, 07/01/14

     805   
188   

6.00%, 04/01/18

     203   
3,676   

6.00%, 02/01/20

     4,062   
2,503   

6.00%, 05/01/33

     2,838   
3,705   

6.00%, 06/01/33

     4,200   
3,578   

6.00%, 06/01/33

     4,055   
7,083   

6.00%, 07/01/33

     8,003   
3,789   

6.00%, 07/01/33

     4,295   
2,878   

6.00%, 07/01/33

     3,254   
8,632   

6.00%, 08/01/33

     9,784   
5,756   

6.00%, 08/01/33

     6,524   
11,375   

6.00%, 10/01/33

     12,894   
8,269   

6.00%, 10/01/33

     9,374   
4,068   

6.00%, 10/01/33

     4,611   
2,986   

6.00%, 11/01/33

     3,378   
6,394   

6.00%, 12/01/33

     7,248   
9,900   

6.00%, 01/01/34

     11,222   
4,922   

6.00%, 02/01/34

     5,580   
 

 

66  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

Bonds & Notes — (continued)

  

AGENCY MORTGAGE BACKED — (continued)

  
103,737   

6.00%, 03/01/34

     116,481   
5,550   

6.00%, 04/01/34

     6,291   
6,596   

6.00%, 05/01/34

     7,476   
6,091   

6.00%, 07/01/34

     6,883   
5,398   

6.00%, 10/01/34

     6,118   
7,580   

6.00%, 11/01/34

     8,592   
4,437   

6.00%, 12/01/34

     5,029   
4,231   

6.00%, 12/01/34

     4,768   
9,882   

6.00%, 01/01/35

     11,202   
6,398   

6.00%, 01/01/35

     7,252   
5,396   

6.00%, 02/01/35

     6,117   
4,084   

6.00%, 03/01/35

     4,629   
11,078   

6.00%, 06/01/35

     12,499   
10,281   

6.00%, 06/01/35

     11,600   
10,102   

6.00%, 06/01/35

     11,397   
8,758   

6.00%, 06/01/35

     9,881   
5,237   

6.00%, 06/01/35

     5,896   
4,769   

6.00%, 07/01/35

     5,406   
3,143   

6.00%, 07/01/35

     3,546   
6,831   

6.00%, 08/01/35

     7,679   
326   

6.50%, 01/01/15

     340   
594   

6.50%, 02/01/16

     638   
1,732   

6.50%, 08/01/17

     1,884   
182   

6.50%, 09/01/17

     198   
517   

6.50%, 10/01/17

     564   
690   

6.50%, 10/01/18

     771   
15,181   

6.50%, 01/01/19

     16,948   
904   

6.50%, 03/01/19

     1,009   
153   

6.50%, 05/01/24

     174   
178   

6.50%, 10/01/28

     210   
167   

6.50%, 05/01/29

     195   
2,559   

6.50%, 07/01/29

     2,939   
998   

6.50%, 07/01/32

     1,146   
1,648   

6.50%, 09/01/32

     1,893   
1,217   

6.50%, 09/01/32

     1,391   
691   

6.50%, 11/01/32

     799   
575   

6.50%, 12/01/32

     658   
2,578   

6.50%, 01/01/33

     2,951   
280   

6.50%, 01/01/33

     324   
1,831   

6.50%, 06/01/33

     2,106   
1,303   

6.50%, 11/01/33

     1,490   
2,543   

6.50%, 01/01/34

     2,907   
170   

6.50%, 02/01/34

     191   
3,427   

6.50%, 07/01/34

     3,918   
2,854   

6.50%, 08/01/34

     3,260   
319   

7.00%, 10/01/16

     343   
1,155   

7.00%, 04/01/17

     1,266   
2,830   

7.00%, 08/01/17

     3,079   
241   

7.00%, 05/01/33

     272   
546   

7.00%, 12/01/33

     618   
11   

7.50%, 09/01/13

     11   
40   

7.50%, 05/01/15

     43   
10   

7.50%, 09/01/15

     10   
2,120   

7.50%, 05/01/17

     2,224   
51   

7.50%, 06/01/17

     52   
2,680   

7.50%, 12/01/23

     3,136   
174   

7.50%, 12/01/26

     209   
510   

7.50%, 09/01/29

     622   
1,368   

7.50%, 08/01/31

     1,687   
5,638   

7.50%, 09/01/31

     6,155   
430   

7.50%, 10/01/31

     528   
7,654   

7.50%, 11/01/31

     9,438   
1,787   

7.50%, 01/01/32

     2,206   
1,256   

7.50%, 05/01/32

     1,553   

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

AGENCY MORTGAGE BACKED — (continued)

  
1,208   

7.50%, 06/01/32

     1,493   
820   

7.50%, 07/01/32

     1,008   
355   

7.50%, 12/01/32

     382   
729   

7.50%, 01/01/33

     902   
524   

7.50%, 03/01/33

     581   
228   

7.50%, 12/01/33

     232   
872   

7.50%, 03/01/34

     960   
135   

8.00%, 07/01/15

     136   
494   

8.00%, 12/01/15

     527   
1,849   

8.00%, 11/01/25

     2,238   
506   

8.00%, 09/01/30

     587   
2,858   

8.00%, 11/01/30

     3,541   
2,514   

8.00%, 12/01/30

     3,094   
1,555   

8.00%, 09/01/32

     1,941   
61   

8.00%, 12/01/32

     62   
160   

8.00%, 01/01/33

     166   
1,660   

8.00%, 11/01/33

     2,074   
1,514   

8.50%, 05/01/31

     1,904   
1,705   

9.00%, 12/01/17

     1,900   
2,207   

9.00%, 12/01/22

     2,614   
  

Government National Mortgage
Assoc.

  
580,000   

3.50%, TBA(h)

     634,556   
215,000   

4.00%, TBA(h)

     237,105   
190,000   

4.00%, TBA(h)

     209,178   
6,205   

4.50%, 08/15/33

     6,852   
19,846   

4.50%, 10/15/33

     21,916   
6,684   

4.50%, 10/15/33

     7,381   
4,866   

4.50%, 10/15/33

     5,374   
14,956   

4.50%, 09/15/34

     16,507   
140,039   

4.50%, 05/20/40

     155,527   
96,387   

4.50%, 03/20/41

     106,732   
15,824   

5.00%, 08/15/33

     17,449   
3,724   

6.00%, 04/15/30

     4,242   
12,990   

6.00%, 07/15/33

     14,908   
6,201   

6.00%, 04/15/34

     7,063   
1,576   

6.00%, 06/15/35

     1,786   
5,883   

6.00%, 09/15/36

     6,656   
899   

6.50%, 02/15/24

     1,043   
8,117   

6.50%, 06/15/24

     9,540   
5,106   

6.50%, 04/15/28

     6,020   
3,303   

6.50%, 04/15/28

     3,899   
8,611   

6.50%, 04/15/32

     10,274   
3,207   

6.50%, 08/15/32

     3,827   
3,235   

6.50%, 01/15/33

     3,860   
9,404   

6.50%, 06/15/34

     11,276   
8,919   

6.50%, 06/15/34

     10,355   
7,584   

6.50%, 08/15/34

     9,075   
2,406   

6.50%, 08/15/34

     2,794   
8,396   

6.50%, 07/15/36

     10,068   
5,495   

6.50%, 08/15/36

     6,365   
3,118   

7.00%, 04/15/28

     3,746   
2,611   

7.00%, 10/15/30

     3,130   
7,091   

7.00%, 06/15/34

     8,272   
4,610   

7.00%, 08/15/36

     5,456   
2,717   

7.00%, 09/15/36

     3,217   
143   

8.00%, 09/15/29

     148   
65   

8.00%, 06/15/30

     67   
13,555   

8.50%, 10/15/17

     14,642   
14,036   

9.00%, 11/15/16

     15,711   
3,030   

9.00%, 01/15/17

     3,397   
1,257   

9.00%, 11/15/17

     1,348   
370   

9.00%, 11/15/17

     400   
536   

9.00%, 12/15/21

         589   
     

 

 

 
 

 

See accompanying Notes to Financial Statements  |  67


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

Bonds & Notes — (continued)

  

AGENCY MORTGAGE BACKED — (continued)

  
  

Total Agency Mortgage Backed
(Cost $7,545,482)

         7,816,505   
     

 

 

 

ASSET BACKED - 0.0%

  
  

Bear Stearns Asset Backed
Securities Trust

  
  

(Series 2003-ABF1) (Class A)

  
3   

0.59%, 01/25/34(e)

     2   
  

Popular ABS Mortgage

  
  

Pass-Through Trust

  
  

(Series 2005-5) (Class AF4)

  
25,000   

5.30%, 11/25/35(i)

     15,940   
     

 

 

 
  

Total Asset Backed
(Cost $20,085)

     15,942   
     

 

 

 

CORPORATE NOTES - 8.5%

  

AUTOMOBILES & COMPONENTS - 0.2%

  
  

American Axle & Manufacturing,
Inc.

  
30,000   

7.88%, 03/01/17(c)

     31,350   
  

Ford Motor Credit Co. LLC

  
29,000   

3.00%, 06/12/17

     29,551   
  

Toyota Motor Credit Corp., MTN

  
37,000   

1.75%, 05/22/17

     38,055   
  

Visteon Corp.

  
35,000   

6.75%, 04/15/19

     36,925   
     

 

 

 
        135,881   
     

 

 

 

BANKS - 0.8%

  

  

Banco Mercantil del Norte SA

  
10,000   

6.86%, 10/13/21(e)(j)

     10,875   
  

Bombardier, Inc.

  
61,000   

7.75%, 03/15/20(j)

     70,302   
  

Central American Bank for
Economic Integration

  
40,000   

5.38%, 09/24/14(j)

     43,011   
  

European Investment Bank

  
100,000   

0.88%, 12/15/14

     100,897   
  

Kreditanstalt fuer Wiederaufbau

  
65,000   

2.00%, 10/04/22

     64,523   
15,000   

4.50%, 07/16/18

     17,797   
  

National Agricultural Cooperative Federation

  
100,000   

4.25%, 01/28/16(j)

     107,816   
  

Nordea Bank AB

  
200,000   

3.13%, 03/20/17(j)

     209,378   
  

Royal Bank of Canada

  
39,000   

1.20%, 09/19/17

     39,293   
     

 

 

 
        663,892   
     

 

 

 

CAPITAL GOODS - 0.4%

  
  

Amsted Industries, Inc.

  
22,000   

8.13%, 03/15/18(j)

     23,870   
  

Cargill, Inc.

  
62,000   

5.20%, 01/22/13(j)

     62,925   
25,000   

6.00%, 11/27/17(j)

     30,310   
  

Case New Holland, Inc.

  
17,000   

7.88%, 12/01/17

     20,018   

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

CORPORATE NOTES — (continued)

  

CAPITAL GOODS — (continued)

  
  

Caterpillar, Inc.

  
33,000   

1.50%, 06/26/17

     33,734   
  

Deere & Co.

  
26,000   

3.90%, 06/09/42

     27,012   
  

Koninklijke Philips Electronics N.V.

  
5,000   

5.00%, 03/15/42

     5,658   
  

Raytheon Co.

  
33,000   

1.40%, 12/15/14

     33,543   
  

Textron, Inc.

  
23,000   

6.20%, 03/15/15

     25,279   
  

United Technologies Corp.

  
15,000   

1.80%, 06/01/17

     15,575   
22,000   

4.50%, 06/01/42

     24,763   
     

 

 

 
            302,687   
     

 

 

 

CONSUMER DURABLES & APPAREL - 0.1%

  
  

DR Horton, Inc.

  
10,000   

4.38%, 09/15/22

     9,962   
  

Hanesbrands, Inc.

  
31,000   

6.38%, 12/15/20

     33,790   
     

 

 

 
        43,752   
     

 

 

 

CONSUMER SERVICES - 0.2%

  
  

ADT Corp. (The)

  
19,000   

2.25%, 07/15/17(j)

     19,578   
21,000   

3.50%, 07/15/22(j)

     21,862   
26,000   

4.88%, 07/15/42(j)

     28,260   
  

CityCenter Holdings LLC

  
18,000   

7.63%, 01/15/16

     19,305   
  

Marriott International, Inc.

  
34,000   

3.25%, 09/15/22

     34,248   
  

McDonald’s Corp., MTN

  
29,000   

1.88%, 05/29/19

     30,131   
  

Vail Resorts, Inc.

  
47,000   

6.50%, 05/01/19(j)

     51,348   
     

 

 

 
        204,732   
     

 

 

 

DIVERSIFIED FINANCIAL SERVICES - 0.2%

  
  

Hyundai Capital America

  
26,000   

1.63%, 10/02/15(j)

     26,032   
38,000   

2.13%, 10/02/17(j)

     38,050   
  

Woodside Finance, Ltd.

  
63,000   

4.50%, 11/10/14(j)

     66,850   
     

 

 

 
        130,932   
     

 

 

 

DIVERSIFIED FINANCIALS - 1.2%

  
  

ABB Finance USA, Inc.

  
26,000   

1.63%, 05/08/17

     26,449   
24,000   

2.88%, 05/08/22

     24,863   
  

American Express Credit Corp.,
MTN

  
18,000   

1.75%, 06/12/15

     18,424   
  

Bank of America Corp.

  
26,000   

5.70%, 01/24/22

     30,595   
45,000   

5.75%, 12/01/17

     51,834   
  

Barclays Bank PLC

  
200,000   

2.25%, 05/10/17(j)

     206,339   
  

Berkshire Hathaway Finance Corp.

  
30,000   

1.60%, 05/15/17

     30,732   
  

Citigroup, Inc.

  
51,000   

4.45%, 01/10/17

     56,072   
 

 

68  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

Bonds & Notes — (continued)

  

CORPORATE NOTES — (continued)

  

DIVERSIFIED FINANCIALS — (continued)

  
45,000   

5.00%, 09/15/14

     47,484   
18,000   

5.88%, 01/30/42

     21,769   
  

DPL, Inc.

  
110,000   

7.25%, 10/15/21(j)

     125,950   
  

Goldman Sachs Capital I

  
33,000   

6.35%, 02/15/34

     33,252   
  

Goldman Sachs Group, Inc. (The)

  
30,000   

5.75%, 01/24/22

     34,620   
19,000   

6.75%, 10/01/37

     20,418   
  

John Deere Capital Corp., MTN

  
21,000   

3.15%, 10/15/21

     22,445   
  

JPMorgan Chase & Co.

  
33,000   

4.35%, 08/15/21

     36,439   
22,000   

4.50%, 01/24/22

     24,450   
  

Morgan Stanley

  
25,000   

5.50%, 07/28/21

     27,408   
100,000   

5.75%, 01/25/21

     109,948   
  

Santander Holdings USA, Inc.

  
13,000   

3.00%, 09/24/15

     13,162   
     

 

 

 
            962,653   
     

 

 

 

ENERGY - 1.5%

  
  

Anadarko Petroleum Corp.

  
28,000   

5.95%, 09/15/16

     32,473   
23,000   

6.20%, 03/15/40

     28,285   
  

BP Capital Markets PLC

  
21,000   

1.85%, 05/05/17

     21,474   
50,000   

2.25%, 11/01/16

     52,391   
  

Cameron International Corp.

  
15,000   

3.60%, 04/30/22

     15,466   
  

Denbury Resources, Inc.

  
27,000   

6.38%, 08/15/21

     29,430   
19,000   

8.25%, 02/15/20

     21,518   
  

Devon Energy Corp.

  
30,000   

1.88%, 05/15/17

     30,614   
  

Ecopetrol SA

  
6,000   

7.63%, 07/23/19

     7,710   
  

Energy Transfer Equity LP

  
23,000   

7.50%, 10/15/20

     26,220   
  

Energy Transfer Partners LP

  
7,000   

6.50%, 02/01/42

     8,106   
25,000   

6.70%, 07/01/18

     29,720   
  

Enterprise Products Operating LLC

  
27,000   

1.25%, 08/13/15

     27,287   
14,000   

4.45%, 02/15/43

     13,905   
  

EOG Resources, Inc.

  
13,000   

2.63%, 03/15/23

     13,170   
  

Forest Oil Corp.

  
30,000   

7.25%, 06/15/19(c)

     29,925   
  

Kinder Morgan Energy Partners LP

  
13,000   

3.45%, 02/15/23

     13,413   
13,000   

5.00%, 08/15/42

     13,551   
  

Linn Energy LLC

  
25,000   

8.63%, 04/15/20

     27,500   
  

Newfield Exploration Co.

  
10,000   

5.63%, 07/01/24

     11,112   
30,000   

5.75%, 01/30/22

     33,675   
  

Nexen, Inc.

  
34,000   

6.40%, 05/15/37

     43,308   

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

CORPORATE NOTES — (continued)

  

ENERGY — (continued)

  
  

Odebrecht Drilling Norbe VIII IX,
Ltd.

  
97,000   

6.35%, 06/30/21(c)(j)

     109,562   
  

ONEOK Partners LP

  
19,000   

2.00%, 10/01/17

     19,375   
20,000   

3.38%, 10/01/22

     20,140   
21,000   

6.13%, 02/01/41

     25,316   
  

Peabody Energy Corp.

  
18,000   

6.25%, 11/15/21(j)

     18,000   
  

Petrobras International Finance Co.

  
17,000   

3.88%, 01/27/16(c)

     18,068   
  

Petrobras International Finance Co.
- Pifco

  
12,000   

2.88%, 02/06/15

     12,364   
38,000   

3.50%, 02/06/17

     39,837   
  

Power Sector Assets & Liabilities Management Corp.

  
100,000   

7.39%, 12/02/24(j)

     139,500   
  

Pride International, Inc.

  
33,000   

6.88%, 08/15/20

     41,842   
  

Range Resources Corp.

  
30,000   

5.75%, 06/01/21

     32,400   
  

Schlumberger Investment SA

  
41,000   

2.40%, 08/01/22(j)

     40,672   
  

Total Capital International SA

  
69,000   

1.55%, 06/28/17

     70,374   
39,000   

2.70%, 01/25/23

     39,841   
  

Transocean, Inc.

  
12,000   

3.80%, 10/15/22

     12,087   
  

Weatherford International, Ltd.

  
24,000   

4.50%, 04/15/22

     25,147   
22,000   

5.95%, 04/15/42

     23,225   
     

 

 

 
            1,218,003   
     

 

 

 

FOOD & STAPLES RETAILING - 0.1%

  
  

CVS Caremark Corp.

  
17,000   

3.25%, 05/18/15

     18,087   
  

Walgreen Co.

  
18,000   

1.80%, 09/15/17

     18,225   
18,000   

3.10%, 09/15/22

     18,306   
     

 

 

 
        54,618   
     

 

 

 

FOOD, BEVERAGE & TOBACCO - 0.6%

  
  

Altria Group, Inc.

  
21,000   

4.25%, 08/09/42

     20,960   
  

Anheuser-Busch InBev Worldwide,
Inc.

  
41,000   

2.50%, 07/15/22

     41,671   
30,000   

3.63%, 04/15/15

     32,236   
33,000   

5.38%, 11/15/14

     36,320   
  

Archer-Daniels-Midland Co.

  
17,000   

5.77%, 03/01/41

     22,097   
  

Campbell Soup Co.

  
14,000   

2.50%, 08/02/22

     14,022   
9,000   

3.80%, 08/02/42

     8,966   
  

Coca-Cola Co. (The)

  
13,000   

3.30%, 09/01/21(j)

     14,506   
  

Diageo Capital PLC

  
40,000   

1.50%, 05/11/17

     40,740   
  

Diageo Investment Corp.

  
42,000   

2.88%, 05/11/22

     43,878   
 

 

See accompanying Notes to Financial Statements  |  69


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

Bonds & Notes — (continued)

  

CORPORATE NOTES — (continued)

  

FOOD, BEVERAGE & TOBACCO — (continued)

  
12,000   

4.25%, 05/11/42

     13,110   
  

Kraft Foods Group, Inc.

  
17,000   

1.63%, 06/04/15(j)

     17,269   
29,000   

2.25%, 06/05/17(j)

     29,889   
25,000   

5.00%, 06/04/42(j)

     28,002   
  

Lorillard Tobacco Co.

  
35,000   

3.50%, 08/04/16

     37,079   
  

Pepsico, Inc.

  
40,000   

2.75%, 03/05/22

     41,613   
  

Philip Morris International, Inc.

  
37,000   

2.50%, 05/16/16

     39,121   
27,000   

3.88%, 08/21/42

     27,258   
     

 

 

 
            508,737   
     

 

 

 

HEALTH CARE EQUIPMENT &
SERVICES - 0.5%

  
  

Cardinal Health, Inc.

  
35,000   

1.90%, 06/15/17(c)

     35,653   
  

Cigna Corp.

  
27,000   

2.75%, 11/15/16

     28,501   
21,000   

5.38%, 02/15/42

     23,618   
  

Covidien International Finance SA

  
22,000   

1.35%, 05/29/15

     22,298   
  

DaVita, Inc.

  
10,000   

5.75%, 08/15/22

     10,450   
30,000   

6.38%, 11/01/18

     32,100   
  

DENTSPLY International, Inc.

  
9,000   

2.75%, 08/15/16

     9,288   
34,000   

4.13%, 08/15/21

     35,797   
  

Express Scripts, Inc.

  
46,000   

3.13%, 05/15/16

     49,096   
  

Fresenius Medical Care US
Finance, Inc.

  
14,000   

5.75%, 02/15/21(j)

     15,050   
  

HCA Holdings, Inc.

  
38,000   

6.50%, 02/15/20

     42,370   
  

Roche Holdings, Inc.

  
55,000   

6.00%, 03/01/19(j)

     69,147   
  

WellPoint, Inc.

  
19,000   

1.25%, 09/10/15

     19,146   
27,000   

1.88%, 01/15/18

     27,241   
30,000   

3.30%, 01/15/23

     30,409   
     

 

 

 
        450,164   
     

 

 

 

INSURANCE - 0.1%

  
  

CNA Financial Corp.

  
21,000   

5.88%, 08/15/20

     24,557   
  

Liberty Mutual Group, Inc.

  
7,000   

4.95%, 05/01/22(j)

     7,336   
14,000   

6.50%, 05/01/42(j)

     15,207   
  

Prudential Financial, Inc., MTN

  
15,000   

5.63%, 05/12/41

     16,936   
  

Willis Group Holdings PLC

  
40,000   

4.13%, 03/15/16

     42,494   
     

 

 

 
        106,530   
     

 

 

 

MATERIALS - 0.2%

  
  

Corp Nacional del Cobre de Chile

  
16,000   

4.25%, 07/17/42(j)

     15,903   

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

CORPORATE NOTES — (continued)

  

MATERIALS — (continued)

  
6,000   

5.63%, 09/21/35(j)

     7,246   
  

Eastman Chemical Co.

  
73,000   

2.40%, 06/01/17

     76,326   
  

Kinross Gold Corp.

  
9,000   

6.88%, 09/01/41

     9,210   
  

Newcrest Finance Property, Ltd.

  
26,000   

4.20%, 10/01/22(j)

     26,228   
  

Xstrata Finance Canada, Ltd.

  
33,258   

5.80%, 11/15/16(j)

     37,611   
     

 

 

 
            172,524   
     

 

 

 

MEDIA - 0.3%

  
  

CCO Holdings LLC

  
32,000   

8.13%, 04/30/20

     36,320   
  

DIRECTV Holdings LLC

  
7,000   

2.40%, 03/15/17

     7,195   
48,000   

4.75%, 10/01/14

     51,501   
33,000   

5.15%, 03/15/42

     33,701   
  

News America, Inc.

  
9,000   

6.65%, 11/15/37

     11,459   
  

Omnicom Group, Inc.

  
38,000   

3.63%, 05/01/22

     40,217   
  

Time Warner Cable, Inc.

  
27,000   

6.75%, 07/01/18

     33,998   
  

Time Warner, Inc.

  
1,000   

3.15%, 07/15/15

     1,068   
10,000   

4.90%, 06/15/42

     11,016   
  

Viacom, Inc.

  
34,000   

2.50%, 12/15/16

     35,852   
  

WPP Finance 2010

  
13,000   

3.63%, 09/07/22

     13,122   
     

 

 

 
        275,449   
     

 

 

 

PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES - 0.5%

  
  

Agilent Technologies, Inc.

  
18,000   

3.20%, 10/01/22

     18,208   
20,000   

5.50%, 09/14/15

     22,462   
  

Allergan, Inc.

  
11,000   

3.38%, 09/15/20

     11,928   
  

Amgen, Inc.

  
22,000   

5.38%, 05/15/43

     25,596   
15,000   

5.65%, 06/15/42

     17,975   
  

Aristotle Holding, Inc.

  
68,000   

2.65%, 02/15/17(j)

     71,331   
15,000   

3.90%, 02/15/22(j)

     16,374   
15,000   

4.75%, 11/15/21(j)

     17,388   
15,000   

6.13%, 11/15/41(j)

     19,548   
  

AstraZeneca PLC

  
26,000   

1.95%, 09/18/19

     26,499   
26,000   

4.00%, 09/18/42

     26,732   
  

Merck & Co., Inc.

  
26,000   

2.40%, 09/15/22

     26,266   
  

Mylan, Inc.

  
10,000   

7.88%, 07/15/20(j)

     11,275   
  

Novartis Capital Corp.

  
31,000   

2.40%, 09/21/22

     31,435   
8,000   

3.70%, 09/21/42

     8,309   
  

Watson Pharmaceuticals, Inc.

  
18,000   

1.88%, 10/01/17

     18,222   
 

 

70  |   See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

Bonds & Notes — (continued)

  

CORPORATE NOTES — (continued)

  

PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES — (continued)

   

13,000   

3.25%, 10/01/22

     13,194   
10,000   

4.63%, 10/01/42

     10,280   
     

 

 

 
            393,022   
     

 

 

 

REAL ESTATE - 0.2%

  
  

AvalonBay Communities, Inc.

  
22,000   

2.95%, 09/15/22

     21,977   
  

Boston Properties LP

  
29,000   

3.85%, 02/01/23

     30,608   
  

DDR Corp.

  
19,000   

4.63%, 07/15/22

     20,700   
  

Duke Realty LP

  
36,000   

6.50%, 01/15/18

     41,850   
  

Host Hotels & Resorts LP

  
6,000   

4.75%, 03/01/23

     6,248   
15,000   

6.00%, 11/01/20

     16,650   
     

 

 

 
        138,033   
     

 

 

 

SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT - 0.0%

  
  

Texas Instruments, Inc.

  
21,000   

1.65%, 08/03/19(c)

     21,133   
     

 

 

 

SOFTWARE & SERVICES - 0.1%

  
  

eBay, Inc.

  
19,000   

1.35%, 07/15/17

     19,250   
13,000   

2.60%, 07/15/22

     13,118   
16,000   

4.00%, 07/15/42

     15,642   
     

 

 

 
        48,010   
     

 

 

 

TECHNOLOGY HARDWARE &
EQUIPMENT - 0.0%

  
  

Corning, Inc.

  
15,000   

4.75%, 03/15/42

     16,277   
  

Hewlett-Packard Co.

  
14,000   

4.05%, 09/15/22(c)

     14,192   
  

Jabil Circuit, Inc.

  
6,000   

4.70%, 09/15/22

     5,999   
     

 

 

 
        36,468   
     

 

 

 

TELECOMMUNICATION SERVICES - 0.5%

  
  

AT&T, Inc.

  
45,000   

0.88%, 02/13/15

     45,411   
31,000   

1.60%, 02/15/17

     31,837   
31,000   

2.95%, 05/15/16

     33,340   
21,000   

5.55%, 08/15/41

     26,245   
38,000   

6.40%, 05/15/38

     50,380   
  

CenturyLink, Inc.

  
5,000   

5.80%, 03/15/22

     5,451   
8,000   

7.65%, 03/15/42

     8,549   
  

Cincinnati Bell, Inc.

  
8,000   

8.25%, 10/15/17

     8,580   
  

Crown Castle Towers LLC

  
32,000   

6.11%, 01/15/20(j)

     38,598   
  

Frontier Communications Corp.

  
33,000   

7.13%, 03/15/19

     35,310   
  

Hughes Satellite Systems Corp.

  
29,000   

6.50%, 06/15/19

     31,175   
  

PAETEC Holding Corp.

  
28,000   

8.88%, 06/30/17

     30,520   

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

CORPORATE NOTES — (continued)

  

TELECOMMUNICATION
SERVICES — (continued)

  
  

Verizon Communications, Inc.

  
76,000   

2.00%, 11/01/16

     79,536   
  

Vodafone Group PLC

  
26,000   

2.50%, 09/26/22

     26,018   
     

 

 

 
        450,950   
     

 

 

 

TRANSPORTATION - 0.1%

  
  

CSX Corp.

  
32,000   

4.25%, 06/01/21

     36,012   
  

United Parcel Service, Inc.

  
26,000   

2.45%, 10/01/22

     26,295   
     

 

 

 
        62,307   
     

 

 

 

UTILITIES - 0.7%

  
  

AES Panama SA

  
20,000   

6.35%, 12/21/16(j)

     22,050   
  

Arizona Public Service Co.

  
15,000   

6.25%, 08/01/16

     17,661   
  

Carolina Power & Light Co.

  
15,000   

2.80%, 05/15/22(c)

     15,641   
  

Consolidated Edison Co. of New
York, Inc.

  
18,000   

5.85%, 04/01/18

     22,343   
30,000   

6.65%, 04/01/19

     38,855   
  

Dominion Resources, Inc.

  
24,000   

1.95%, 08/15/16

     24,828   
14,000   

4.90%, 08/01/41

     16,273   
  

Duke Energy Corp.

  
27,000   

1.63%, 08/15/17

     27,111   
66,000   

3.05%, 08/15/22

     66,775   
  

Empresa de Energia de Bogota SA

  
6,000   

6.13%, 11/10/21(j)

     6,629   
  

Exelon Corp.

  
34,000   

4.90%, 06/15/15

     37,396   
  

Florida Power & Light Co.

  
30,000   

4.13%, 02/01/42

     32,774   
  

Georgia Power Co.

  
15,000   

4.30%, 03/15/42

     16,070   
  

Great Plains Energy, Inc.

  
37,000   

4.85%, 06/01/21

     41,106   
  

Midamerican Energy Holdings Co.

  
40,000   

6.13%, 04/01/36

     51,351   
  

NextEra Energy Capital Holdings,
Inc.

  
43,000   

2.60%, 09/01/15

     44,613   
  

Nisource Finance Corp.

  
33,000   

3.85%, 02/15/23

     34,687   
  

Oglethorpe Power Corp.

  
21,000   

5.38%, 11/01/40(c)

     25,476   
  

Pacific Gas & Electric Co.

  
14,000   

6.05%, 03/01/34

     18,461   
  

PacifiCorp

  
2,000   

6.25%, 10/15/37

     2,750   
  

Sempra Energy

  
39,000   

2.30%, 04/01/17

     40,859   
     

 

 

 
        603,709   
     

 

 

 
  

Total Corporate Notes
(Cost $6,555,103)

     6,984,186   
     

 

 

 
 

 

See accompanying Notes to Financial Statements  |  71


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

Bonds & Notes — (continued)

  

MUNICIPAL BONDS AND NOTES - 0.2%

  
  

American Municipal Power, Inc.

  
15,000   

6.27%, 02/15/50

     17,499   
  

Municipal Electric Authority of
Georgia

  
22,000   

6.64%, 04/01/57

     25,574   
  

New Jersey State Turnpike
Authority

  
10,000   

7.41%, 01/01/40

     14,766   
  

New Jersey Transportation Trust
Fund Authority

  
10,000   

6.88%, 12/15/39

     11,560   
  

Port Auth of New York & New
Jersey

  
30,000   

4.46%, 10/01/62

     30,000   
  

South Carolina State Public
Service Authority

  
20,000   

6.45%, 01/01/50

     27,187   
  

State of California, GO

  
25,000   

5.70%, 11/01/21

     28,412   
     

 

 

 
  

Total Municipal Bonds and Notes
(Cost $135,444)

         154,998   
     

 

 

 

NON-AGENCY COLLATERALIZED MORTGAGE
BACKED SECURITIES - 0.8%

   

  

Banc of America Commercial
Mortgage, Inc.

  
  

(Series 2005-6) (Class A4)

  
40,000   

5.36%, 09/10/47(e)

     45,145   
  

(Series 2006-4) (Class AM)

  
10,000   

5.68%, 07/10/46

     11,187   
  

(Series 2008-1) (Class A4)

  
20,000   

6.40%, 02/10/51(e)

     24,403   
  

Bear Stearns Commercial
Mortgage Securities

  
  

(Series 2005-T18) (Class A4)

  
35,000   

4.93%, 02/13/42(e)

     38,339   
  

(Series 2006-PW11) (Class A2)

  
21,400   

5.57%, 03/11/39(e)

     21,580   
  

(Series 2006-T22) (Class AM)

  
40,000   

5.71%, 04/12/38(e)

     43,961   
  

Citigroup Commercial Mortgage
Trust

  
  

(Series 2006-C5) (Class AJ)

  
20,000   

5.48%, 10/15/49

     18,478   
  

Commercial Mortgage Pass
Through Certificates

  
  

(Series 2005-LP5) (Class A4)

  
20,000   

4.98%, 05/10/43(e)

     22,073   
  

(Series 2006-C7) (Class AM)

  
30,000   

5.97%, 06/10/46(e)

     32,191   
  

GS Mortgage Securities Corp. II

  
  

(Series 2011-GC5) (Class A2)

  
30,000   

3.00%, 08/10/44

     32,214   
  

(Series 2011-GC5) (Class B)

  
10,000   

5.47%, 08/10/44(e)(j)

     11,394   
  

JP Morgan Chase Commercial
Mortgage Securities Corp.

  
  

(Series 2005-LDP1) (Class A4)

  
20,000   

5.04%, 03/15/46(e)

     21,827   

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

NON-AGENCY COLLATERALIZED MORTGAGE
BACKED SECURITIES — (continued)

   

  

(Series 2005-CB11) (Class A4)

  
60,000   

5.34%, 08/12/37(e)

     66,275   
  

(Series 2007-CB18) (Class A4)

  
60,000   

5.44%, 06/12/47

     69,532   
  

LB-UBS Commercial Mortgage
Trust

  
  

(Series 2004-C8) (Class XCL)

  
371,627   

0.95%, 12/15/39(d)(e)(j)

     4,810   
  

(Series 2005-C5) (Class A4)

  
30,000   

4.95%, 09/15/30

     33,129   
  

(Series 2006-C1) (Class A4)

  
40,000   

5.16%, 02/15/31

     44,954   
  

(Series 2006-C4) (Class A4)

  
10,000   

6.06%, 06/15/38(e)

     11,597   
  

Morgan Stanley Capital I

  
  

(Series 2006-T21) (Class A4)

  
20,000   

5.16%, 10/12/52(e)

     22,514   
  

(Series 2007-IQ16) (Class A2)

  
6,434   

5.62%, 12/12/49

     6,431   
  

(Series 2006-IQ11) (Class B)

  
20,000   

5.90%, 10/15/42(e)

     16,816   
  

(Series 2006-T23) (Class A4)

  
20,000   

5.99%, 08/12/41(e)

     23,481   
  

Wachovia Bank Commercial
Mortgage Trust

  
  

(Series 2006-C23) (Class AM)

  
40,000   

5.47%, 01/15/45(e)

     44,094   
     

 

 

 
  

Total Non-Agency Collateralized
Mortgage Backed Securities
(Cost $620,951)

         666,425   
     

 

 

 

NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 0.1%

  
  

Collateralized Mortgage Obligation
Trust

  
  

(Series 55) (Class B)

  
464   

0.00%, 11/01/18(f)(g)

     444   
  

Credit Suisse First Boston
Mortgage Securities Corp.

  
  

(Series 2005-9) (Class CB1)

  
36,805   

5.32%, 10/25/35(e)

     1,490   
  

Credit Suisse Mortgage Capital
Certificates

  
  

(Series 2006-1) (Class CB1)

  
9,563   

5.53%, 02/25/36(e)

     181   
  

JP Morgan Chase Commercial
Mortgage Securities Corp.

  
  

(Series 2012-CBX) (Class AS)

  
30,000   

4.27%, 06/15/45

     33,130   
  

MASTR Alternative Loans Trust

  
  

(Series 2003-5) (Class 15AX)

  
20,102   

5.00%, 08/25/18(d)

     1,844   
  

Wells Fargo Commercial Mortgage
Trust

  
  

(Series 2012-LC5) (Class C)

  
10,000   

4.69%, 10/15/45(e)

     10,249   
  

Wells Fargo Mortgage Backed
Securities Trust

  
  

(Series 2006-3) (Class B1)

  
169,093   

5.50%, 03/25/36

     3,428   
     

 

 

 
 

 

72  |   See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

Bonds & Notes — (continued)

  

NON-AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS — (continued)

  
  

Total Non-Agency Collateralized
Mortgage Obligations
(Cost $252,049)

         50,766   
     

 

 

 

SOVEREIGN BONDS - 0.7%

  
  

Argentine Republic Government
International Bond

  
5,422   

2.50%, 12/31/38(i)

     2,012   
3,869   

8.28%, 12/31/33

     2,921   
  

Corp Andina de Fomento

  
26,000   

4.38%, 06/15/22

     28,327   
  

El Salvador Government
International Bond

  
10,000   

7.65%, 06/15/35(j)

     11,225   
  

Hungary Government International
Bond

  
14,000   

6.25%, 01/29/20

     15,258   
8,000   

7.63%, 03/29/41

     9,080   
  

Korea National Oil Corp.

  
100,000   

2.88%, 11/09/15

     104,400   
  

Lebanon Government International
Bond

  
2,200   

4.00%, 12/31/17

     2,172   
7,000   

5.15%, 11/12/18

     6,965   
7,000   

6.10%, 10/04/22

     7,105   
  

Mexico Government International
Bond

  
6,000   

5.75%, 10/12/99 TBA(h)(k)

     7,215   
  

Mexico Government International
Bond, MTN

  
12,000   

4.75%, 03/08/44

     13,380   
  

Panama Government International
Bond

  
6,000   

6.70%, 01/26/36

     8,460   
  

Peruvian Government International
Bond

  
11,000   

6.55%, 03/14/37

     16,252   
  

Philippine Government
International Bond

  
100,000   

6.38%, 01/15/32

     135,625   
  

Poland Government International
Bond

  
4,000   

3.00%, 03/17/23

     3,941   
24,000   

5.00%, 03/23/22

     27,900   
4,000   

6.38%, 07/15/19

     4,955   
  

Romanian Government
International Bond

  
12,000   

6.75%, 02/07/22(j)

     13,545   
  

Russian Foreign Bond - Eurobond

  
4,614   

7.50%, 03/31/30(i)

     5,835   
  

Turkey Government International
Bond

  
81,000   

6.88%, 03/17/36

     103,072   
  

Uruguay Government International
Bond

  
15,558   

6.88%, 09/28/25

     21,314   

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

SOVEREIGN BONDS — (continued)

  
  

Venezuela Government
International Bond

  
18,000   

10.75%, 09/19/13

     18,540   
  

Vietnam Government International
Bond

  
2,435   

1.50%, 03/12/16(e)

     2,228   
     

 

 

 
  

Total Sovereign Bonds
(Cost $519,176)

     571,727   
     

 

 

 

U.S. TREASURIES - 9.6%

  
  

U.S. Treasury Bonds

  
226,100   

2.75%, 08/15/42(c)

     222,391   
2,230,100   

3.00%, 05/15/42(c)

     2,312,683   
635,000   

3.13%, 02/15/42(a)(c)

     675,580   
  

U.S. Treasury Notes

  
184,700   

0.13%, 07/31/14(c)

     184,346   
1,800,500   

0.50%, 07/31/17

     1,791,921   
9,700   

0.63%, 08/31/17

     9,708   
1,210,200   

0.75%, 06/30/17(c)

     1,219,561   
1,353,100   

1.63%, 08/15/22(c)

     1,351,832   
192,900   

1.75%, 05/15/22

     195,643   
     

 

 

 
  

Total U.S. Treasuries
(Cost $7,935,488)

     7,963,665   
     

 

 

 
  

Total Bonds & Notes
(Cost $23,804,433)

     24,394,793   
     

 

 

 

            Shares            

      

Other Investments - 5.4%

  
4,706   

Financial Select Sector SPDR
Fund ETF

     73,414   
170,771   

GEI Investment Fund(l)

     210,049   
7,914   

Industrial Select Sector SPDR
Fund ETF(c)

     289,178   
74,277   

Vanguard MSCI Emerging Markets,
ETF

     3,101,065   
12,510   

Vanguard REIT ETF

     812,775   
     

 

 

 
  

Total Other Investments
(Cost $4,324,543)

     4,486,481   
     

 

 

 

Registered Investment Company - 13.1%

  

10,793,769   

Federated Prime Obligations Fund

     10,793,769   
     

 

 

 
  

Total Registered Investment
Company
(Cost $10,793,769)

     10,793,769   
     

 

 

 

Total Investments - 101.9%

     84,108,142   
     

 

 

 
        (Cost $78,716,544)   

Liabilities in Excess of Other Assets - (1.9)%

     (1,570,783
     

 

 

 

Net Assets - 100.0%

         82,537,359   
     

 

 

 

 

(a) At September 30, 2012, all or portion of this security was pledged as collateral requirements for futures contracts and/or TBA’s.
(b) Non-income producing security.
(c) Securities (or a portion of securities) on loan. As of September 30, 2012, the market value of securities loaned was $5,515,593. The loaned securities were secured with cash and securities collateral of $5,674,635. See Note 5.
(d) Interest only security. These types of securities represent the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of principal on the pool reduce the value of the “interest only” holding.
 

 

See accompanying Notes to Financial Statements  |  73


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

(e) Variable or floating rate security. The interest rate shown reflects the rate in effect at September 30, 2012.
(f) Principal only security. These types of securities represent the right to receive the monthly principal payments on an underlying pool of mortgages. No payments of interest on the pool are passed through to the “principal only” holder.
(g) Zero coupon bond. Coupon amount represents effective yield to maturity.
(h) Settlement is on a delayed delivery or when-issued basis with final maturity to be announced (TBA) in the future.
(i) Step coupon bond. Security becomes interest bearing at a future date.
(j) Securities exempt from registration under Rule 144A of the 1933 Act. These securities may only be resold, in transactions exempt from registration, to qualified institutional buyers. At September 30, 2012, these securities amounted to $1,978,051 or 2.4% of net assets.
(k) The actual maturity date of this security is 10/12/2110.
(l) The security is a private fund.

 

ADR American Depositary Receipt
ETF Exchange Traded Fund
GO General Obligation
GDR Global Depositary Receipt
MSCI Morgan Stanley Capital International
MTN Medium Term Note
PLC Public Limited Company
REIT Real Estate Investment Trust
REMIC Real Estate Mortgage Investment Conduit
SPDR Standard & Poor’s Depositary Receipt
STRIPS Separate Trading of Registered Interest and Principal of Security

The Fund had the following futures contracts, brokered by Royal Bank of Scotland, open at September 30, 2012:

 

  Description   

Expiration

Date

  Number
of
Contracts
  Notional
Value
 

Unrealized

Appreciation

(Depreciation)

Long Futures:

              

2 Yr. U.S. Treasury Notes Futures

   December 2012       4       $ 882,125       $ 427  

5 Yr. U.S. Treasury Notes Futures

   December 2012       42         5,234,578         21,103  

DJ Euro Stoxx 50 Index Futures

   December 2012       1         31,584         (1,485 )

FTSE 100 Index Futures

   December 2012       1         92,254         (2,143 )

S&P 500 Emini Index Futures

   December 2012       9         645,413         (11,187 )

S&P Mid 400 Emini Index Futures

   December 2012       28         2,762,200         (106,624 )

Topix Index Futures

   December 2012       1         94,473         1,373  
              

 

 

 
                 (98,536 )
              

 

 

 

Short Futures:

              

10 Yr. U.S. Treasury Notes Futures

   December 2012       33         4,404,984         (18,956 )

Long U.S. Treasury Bond Futures

   December 2012       4         597,500         (3,761 )

Ultra Long U.S. Treasury Bond Futures

   December 2012       13         2,147,844         11,574  
              

 

 

 
                 (11,143 )
              

 

 

 
               $ (109,679 )
              

 

 

 
 

 

74  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Total Return Fund

 

The Fund was invested in the following countries as of September 30, 2012:

 

 Country   Percentage (based) 
on Total
Investments) 

United States

      80.3%  

United Kingdom

      4.5%

Japan

      2.4%

Germany

      2.1%

Switzerland

      1.6%

France

      1.4%

China

      1.2%

Canada

      0.8%

Sweden

      0.7%

Netherlands

      0.6%

Australia

      0.4%

Hong Kong

      0.4%

South Korea

      0.4%

Taiwan

      0.4%

Italy

      0.4%

Philippines

      0.3%

Ireland

      0.3%

Singapore

      0.3%

Korea

      0.3%

Cayman Islands

      0.2%

Luxembourg

      0.2%

Belgium

      0.2%

Turkey

      0.1%

India

      0.1%

Venezuela

      0.1%

Honduras

      0.1%

Mexico

      0.1%

Brazil

      0.1%

Panama

      0.0%

Poland

      0.0%

Chile

      0.0%

Hungary

      0.0%

Uruguay

      0.0%

Colombia

      0.0%

Lebanon

      0.0%

Peru

      0.0%

Romania

      0.0%

Argentina

      0.0%

Russia

      0.0%

Slovenia

      0.0%

Vietnam

      0.0%
 

 

  100.0%
 

 

 

 Industry    Domestic   Foreign   Percentage (based
on Total
Investments)

Software & Services

   5.0%   1.1%       6.1%

Energy

   3.2%   1.5%       4.7%

Technology Hardware & Equipment

   4.1%   0.3%       4.4%

Pharmaceuticals, Biotechnology & Life Sciences

   2.8%   1.2%       4.0%

Food, Beverage & Tobacco

   2.3%   1.3%       3.6%

Capital Goods

   1.7%   1.5%       3.2%

Diversified Financials

   2.7%   0.4%       3.1%

Health Care Equipment & Services

   2.4%   0.6%       3.0%

Media

   2.6%   0.2%       2.8%

Materials

   1.2%   1.6%       2.8%

Banks

   1.3%   1.1%       2.4%

Insurance

   1.1%   1.0%       2.1%

Retailing

   1.8%   0.0%       1.8%

Semiconductors & Semiconductor Equipment

   0.5%   0.7%       1.2%

Telecommunication Services

   0.5%   0.6%       1.1%

Real Estate

   0.7%   0.3%       1.0%

Transportation

   1.0%   0.0%       1.0%

Utilities

   0.7%   0.3%       1.0%

Household & Personal Products

   0.4%   0.4%       0.8%

Automobiles & Components

   0.1%   0.6%       0.7%

Commercial & Professional Services

   0.0%   0.7%       0.7%

Consumer Durables & Apparel

   0.2%   0.5%       0.7%

Consumer Services

   0.5%   0.0%       0.5%

Food & Staples Retailing

   0.0%   0.1%       0.1%
      

 

           52.8%  
      

 

 

 Sector   Percentage (based
on  Total
Investments)

U.S. Treasuries

      9.4%

Agency Mortgage Backed

      9.3%

Corporate Notes

      8.3%

Non-Agency Collateralized Mortgage Backed Securities

      0.8%

Sovereign Bonds

      0.7%

Agency Collateralized Mortgage Obligations

      0.2%

Municipal Bonds and Notes

      0.2%

Non-Agency Collateralized Mortgage Obligations

      0.1%

Asset Backed

      0.0%
 

 

      29.0%  
 

 

 

 Other Instruments   Percentage (based
on Total
Investments)

Registered Investment Company

      12.8%

Other Investments

      5.4%
 

 

      18.2%  
 

 

      100.0%    
 

 

 

 

See accompanying Notes to Financial Statements   |  75


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis Tax-Exempt Fund

 

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

Municipal Bonds and Notes - 99.2%

  

ALASKA - 1.7%

  

  

Alaska Housing Finance Corp.
(GO OF CORP Insured)

  
500,000   

5.00%, 12/01/27

     594,395   
     

 

 

 

CALIFORNIA - 10.3%

  

  

California State Department of
Water Resources

  
250,000   

5.00%, 05/01/21

     316,042   
1,000,000   

5.00%, 12/01/21

     1,278,830   
  

Los Angeles Harbor Department

  
1,160,000   

5.00%, 08/01/26

     1,360,819   
  

Sacramento Municipal Utility
District

  
38,000   

6.80%, 10/01/19

     43,215   
105,000   

9.00%, 04/01/13

     109,515   
  

State of California

  
500,000   

5.25%, 04/01/35

     580,245   
     

 

 

 
            3,688,666   
     

 

 

 

COLORADO - 0.8%

  

  

Metro Wastewater Reclamation
District

  
230,000   

5.00%, 04/01/27

     283,578   
     

 

 

 

CONNECTICUT - 9.8%

  

  

City of New Haven CT
(Insured: AMBAC)

  
1,000,000   

5.38%, 12/01/12

     1,006,680   
  

South Central Connecticut
Regional Water Authority
(GO OF AUTH Insured)

  
500,000   

5.00%, 08/01/33

     591,090   
  

State of Connecticut

  
500,000   

5.00%, 01/01/22

     625,110   
  

Town of Fairfield CT

  
1,000,000   

5.00%, 01/01/21

     1,264,250   
     

 

 

 
        3,487,130   
     

 

 

 

DISTRICT OF COLUMBIA - 1.6%

  

  

District of Columbia

  
500,000   

5.00%, 04/01/30

     583,470   
     

 

 

 

FLORIDA - 2.0%

  

  

City of Gainesville FL

  
75,000   

8.13%, 10/01/14

     80,704   
  

City of Tampa FL

  
250,000   

5.00%, 10/01/27

     300,510   
  

Jacksonville Health Facilities
Authority

  
200,000   

11.50%, 10/01/12

     200,000   
  

State of Florida

  
105,000   

10.00%, 07/01/14

     116,627   
     

 

 

 
        697,841   
     

 

 

 

GEORGIA - 7.0%

  

  

City of Atlanta GA
(Insured: AGM)

  
500,000   

5.75%, 11/01/30

     698,510   
  

Municipal Electric Authority of
Georgia

  
1,000,000   

5.25%, 01/01/19

     1,213,410   

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

GEORGIA — (continued)

  

  

State of Georgia

  
500,000   

4.50%, 01/01/29

     570,185   
     

 

 

 
            2,482,105   
     

 

 

 

HAWAII - 5.3%

  

  

State of Hawaii

  
1,135,000   

5.25%, 07/01/24

     1,364,100   
  

(Insured: AGM)

  
500,000   

5.75%, 02/01/14

     535,800   
     

 

 

 
        1,899,900   
     

 

 

 

INDIANA - 2.8%

  

  

Indiana Municipal Power Agency

  
500,000   

5.50%, 01/01/27

     603,210   
  

Indiana Toll Road Commission

  
355,000   

9.00%, 01/01/15

     393,017   
     

 

 

 
        996,227   
     

 

 

 

IOWA - 0.4%

  

  

City of Muscatine IA

  
125,000   

9.70%, 01/01/13

     127,881   
     

 

 

 

KENTUCKY - 1.6%

  

  

Kentucky State Property & Building
Commission
(Insured: AGC)

  
500,000   

5.25%, 02/01/27

     580,630   
     

 

 

 

MAINE - 1.6%

  

  

Maine Health & Higher Educational
Facilities Authority
(Insured: ST RES FD GTY)

  
500,000   

5.25%, 07/01/21

     581,710   
     

 

 

 

MARYLAND - 4.4%

  

  

County of Montgomery MD

  
750,000   

5.00%, 07/01/21

     961,522   
  

State of Maryland

  
500,000   

5.00%, 11/01/18

     624,000   
     

 

 

 
        1,585,522   
     

 

 

 

MASSACHUSETTS - 0.2%

  

  

Massachusetts Port Authority

  
50,000   

13.00%, 07/01/13

     54,726   
     

 

 

 

MICHIGAN - 3.2%

  

  

City of Detroit MI
(Insured: AGM)

  
500,000   

5.25%, 07/01/22

     565,955   
  

Lansing Board of Water & Light

  
500,000   

5.00%, 07/01/37

     570,610   
     

 

 

 
        1,136,565   
     

 

 

 

MINNESOTA - 0.2%

  

  

Western Minnesota Municipal
Power Agency

  
60,000   

6.63%, 01/01/16

     66,403   
     

 

 

 

MISSISSIPPI - 1.5%

  

  

State of Mississippi

  
500,000   

5.50%, 09/01/14

     548,900   
     

 

 

 
 

 

76  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Tax-Exempt Fund

 

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

Municipal Bonds and Notes — (continued)

  

MISSOURI - 6.7%

  

  

Missouri Highway & Transportation
Commission

  
1,500,000   

5.00%, 05/01/21

     1,842,150   
  

Missouri Joint Municipal Electric
Utility Commission

  
500,000   

5.75%, 01/01/29

     547,700   
     

 

 

 
        2,389,850   
     

 

 

 

NEW JERSEY - 2.4%

  

  

Atlantic County Improvement
Authority

  
  

(Insured: NATL-RE)

  
125,000   

7.40%, 07/01/16

     143,301   
  

New Jersey State Turnpike
Authority

  
  

(Insured: AMBAC-TCRS)

  
40,000   

6.50%, 01/01/16

     43,850   
  

(Insured: AMBAC-TCRS)

  
15,000   

6.50%, 01/01/16

     16,706   
  

(Insured: AMBAC-TCRS-BNY)

  
135,000   

6.50%, 01/01/16

     150,358   
  

New Jersey Transportation Trust
Fund Authority

  
  

(Insured: AGM)

  
500,000   

5.75%, 12/15/12

     505,460   
     

 

 

 
        859,675   
     

 

 

 

NEW MEXICO - 2.6%

  

  

New Mexico Finance Authority

  
500,000   

5.00%, 06/15/18

     613,025   
250,000   

5.00%, 06/15/20

     314,435   
     

 

 

 
        927,460   
     

 

 

 

NEW YORK - 9.3%

  

  

Brooklyn Arena Local Development
Corp.

  
500,000   

6.00%, 07/15/30

     587,445   
  

New York State Dormitory
Authority

  
500,000   

6.50%, 12/01/21

     576,765   
325,000   

7.38%, 07/01/16

     373,230   
  

New York State Urban
Development Corp.

  
1,000,000   

5.50%, 01/01/19

     1,233,530   
  

Westchester County Healthcare
Corp. Ny

  
500,000   

5.00%, 11/01/30

     555,420   
     

 

 

 
            3,326,390   
     

 

 

 

NORTH CAROLINA - 3.4%

  

  

City of Charlotte NC

  
500,000   

5.00%, 06/01/23

     616,025   

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

NORTH CAROLINA — (continued)

  

  

North Carolina Turnpike Authority

  
500,000   

5.00%, 07/01/29

     598,920   
     

 

 

 
        1,214,945   
     

 

 

 

PENNSYLVANIA - 4.5%

  

  

City of Philadelphia PA

  
  

(Insured: NATL-RE)

  
280,000   

7.00%, 05/15/20

     338,682   
  

Pennsylvania Turnpike Commission

  
500,000   

0.00%, 12/01/34

     489,820   
500,000   

5.00%, 12/01/32

     562,920   
  

Pittsburgh Water & Sewer Authority

  
  

(Insured: FGIC)

  
205,000   

7.25%, 09/01/14

     223,512   
     

 

 

 
        1,614,934   
     

 

 

 

RHODE ISLAND - 1.6%

  

  

Rhode Island Health & Educational
Building Corp.

  
500,000   

6.25%, 09/15/34

     583,785   
     

 

 

 

SOUTH CAROLINA - 6.7%

  

  

Charleston Educational Excellence
Finance Corp.

  
500,000   

5.25%, 12/01/27

     558,160   
  

Georgetown County School District

  
  

(Insured: SCSDE)

  
1,000,000   

5.00%, 03/01/18

     1,223,160   
  

Piedmont Municipal Power Agency

  
  

(Insured: AGC)

  
500,000   

5.75%, 01/01/34

     601,205   
     

 

 

 
        2,382,525   
     

 

 

 

TENNESSEE - 3.5%

  

  

County of Shelby TN

  
500,000   

5.00%, 03/01/21

     619,140   
  

State of Tennessee

  
500,000   

5.00%, 10/01/30

     610,030   
     

 

 

 
        1,229,170   
     

 

 

 

TEXAS - 4.1%

  

  

City of Houston TX

  
500,000   

5.25%, 11/15/31

     603,285   
  

State of Texas

  
750,000   

5.00%, 04/01/28

     848,348   
     

 

 

 
        1,451,633   
     

 

 

 
  

Total Municipal Bonds and Notes
(Cost $31,898,702)

         35,376,016   
     

 

 

 
 

 

See accompanying Notes to Financial Statements  |  77


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Tax-Exempt Fund

 

             Shares            

  

Value ($)

 
  

 

  

 

 

 

Other Investments - 0.0%

  

2,342   

GEI Investment Fund(a)

     2,880   
     

 

 

 
  

Total Other Investments
(Cost $2,342)

     2,880   
     

 

 

 

Registered Investment Company - 1.4%

  

485,120   

Federated Prime Obligations Fund

     485,121   
     

 

 

 
  

Total Registered Investment Company
(Cost $485,121)

     485,121   
     

 

 

 

Total Investments - 100.6%

     35,864,017   
     

 

 

 

(Cost $32,386,165)

  

Liabilities in Excess of Other Assets - (0.6)%

     (207,953
     

 

 

 

Net Assets - 100.0%

         35,656,064   
     

 

 

 

 

(a) The security is a private fund.

 

 

AGC    Assured Guaranty Corp.
AGM    Assured Guaranty Municipal Corp.
AMBAC    American Municipal Bond Assurance Corp.
BNY    The Bank of New York Mellon Corp.
FGIC    Financial Guaranty Insurance Corp.
GO OF AUTH    General Obligation of Authority
GO OF CORP    General Obligation of Corporation
NATL-RE    National Public Finance Guarantee Corp.
SCSDE    South Carolina State Department of Education
ST RES FD GTY    State Resource Fund Guaranty
TCRS    Temporary Custodial Receipts
 

 

78  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis Fixed Income Fund

 

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

Bonds & Notes - 93.4%

  

AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS - 0.8%

  
  

Federal Home Loan Mortgage
Corp. REMIC

  
  

(Series 2412) (Class OF)

  
171,989   

1.17%, 12/15/31(a)

     175,646   
  

(Series 3862) (Class MI)

  
112,477   

3.50%, 11/15/24(b)

     8,182   
  

(Series 3977) (Class AI)

  
308,131   

3.50%, 09/15/29(b)

     21,673   
  

(Series 3983) (Class EI)

  
237,591   

3.50%, 11/15/30(b)

     26,548   
  

(Series 2645) (Class BI)

  
9,418   

4.50%, 02/15/18(b)

     320   
  

(Series 2643) (Class IM)

  
74,903   

4.50%, 03/15/18(b)

     4,494   
  

(Series 2590) (Class YQ)

  
4,483   

5.00%, 05/15/17(b)

     84   
  

(Series 2781) (Class CI)

  
8,625   

5.00%, 11/15/17(b)

     146   
  

(Series 2781) (Class IC)

  
23,985   

5.00%, 05/15/18(b)

     1,023   
  

(Series 2763) (Class JI)

  
56,322   

5.00%, 10/15/18(b)

     3,800   
  

(Series 3536) (Class IP)

  
38,253   

5.00%, 02/15/38(b)

     2,847   
  

(Series 2631) (Class DI)

  
99,412   

5.50%, 06/15/33(b)

     12,721   
  

(Series 3806) (Class DS)

  
298,677   

6.38%, 08/15/25(a)(b)

     42,431   
  

(Series 2126) (Class YI)

  
43,053   

6.50%, 02/15/14(b)

     1,420   
  

(Series 1980) (Class IO)

  
1,731   

7.50%, 07/15/27(b)

     414   
  

(Series 33) (Class D)

  
508   

8.00%, 04/15/20

     548   
  

(Series 2815) (Class YL)

  
29,245   

8.00%, 01/15/34

     29,562   
  

Federal Home Loan Mortgage
Corp. STRIPS

  
  

(Series 186) (Class PO)

  
1,132   

0.00%, 08/01/27(c)(d)

     988   
  

(Series 147) (Class IO)

  
2,063   

8.00%, 02/01/23(b)

     450   
  

(Series 171) (Class IO)

  
2,299   

8.00%, 07/01/24(b)

     550   
  

Federal Home Loan Mortgage
Corp. Structured Pass Through
Securities

  
  

(Series T-58) (Class AIO)

  
989,849   

0.08%, 09/25/43(a)(b)

     8,015   
  

Federal National Mortgage Assoc.
REMIC

  
  

(Series G92-68) (Class B)

  
1,445   

0.00%, 12/25/22(c)(d)

     1,350   
  

(Series 2003-35) (Class QA)

  
4,676,825   

0.10%, 05/25/18(a)(b)

     8,141   
  

(Series 2003-89) (Class IO)

  
202,424   

1.21%, 12/25/42(a)(b)

     5,955   
  

(Series 2012-46) (Class KI)

  
244,488   

3.50%, 05/25/27(b)

     32,313   

Principal Amount ($)

   Value ($)  
  

 

  

 

 

 

AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS — (continued)

  
  

(Series 2003-64) (Class KI)

  
2,698   

4.50%, 05/25/18(b)

     28   
  

(Series 2010-16) (Class PA)

  
660,114   

4.50%, 02/25/40

     705,784   
  

(Series 2003-41) (Class BI)

  
13,268   

5.00%, 08/25/17(b)

     354   
  

(Series 2003-79) (Class HI)

  
19,784   

5.00%, 10/25/22(b)

     621   
  

(Series 2003-61) (Class IJ)

  
88,011   

5.00%, 02/25/32(b)

     4,149   
  

(Series 2010-16) (Class PI)

  
396,069   

5.00%, 02/25/40(b)

     48,305   
  

(Series 2010-21) (Class PI)

  
47,671   

5.00%, 02/25/40(b)

     5,743   
  

(Series 2010-98) (Class DI)

  
397,175   

5.00%, 09/25/40(b)

     52,023   
  

(Series 2008-61) (Class SB)

  
142,579   

5.78%, 07/25/38(a)(b)

     17,439   
  

(Series 1992-77) (Class K)

  
7   

8.00%, 05/25/22(b)

     180   
  

Federal National Mortgage Assoc.
STRIPS

  
  

(Series 354) (Class 1)

  
126,490   

0.00%, 12/01/34(c)(d)

     123,401   
  

(Series 362) (Class 2)

  
109,297   

4.50%, 08/01/35(b)

     12,038   
  

(Series 378) (Class 1)

  
116,696   

4.50%, 01/01/36(b)

     13,703   
  

(Series 387) (Class 2)

  
72,822   

5.00%, 03/25/38(b)

     9,280   
  

(Series 387) (Class 1)

  
64,580   

5.00%, 05/25/38(b)

     8,783   
  

(Series 346) (Class 2)

  
27,414   

5.50%, 12/01/33(b)

     3,467   
  

(Series 356) (Class 17)

  
29,754   

6.00%, 01/01/35(b)

     4,831   
  

(Series 356) (Class 21)

  
35,942   

6.00%, 01/01/35(b)

     5,678   
  

(Series 252) (Class 2)

  
15,688   

7.50%, 11/01/23(b)

     3,460   
  

(Series 237) (Class 2)

  
1,220   

8.00%, 08/01/23(b)

     261   
  

(Series 264) (Class 2)

  
7,674   

8.00%, 07/01/24(b)

     1,742   
  

(Series 12) (Class 2)

  
397   

8.50%, 03/01/17(b)

     53   
  

(Series 7) (Class 2)

  
981   

8.50%, 04/01/17(b)

     146   
  

(Series 28) (Class 2)

  
152   

8.50%, 01/01/18(b)

     22   
  

(Series 150) (Class 2)

  
1,103   

8.50%, 07/25/22(b)

     255   
  

(Series 163) (Class 2)

  
1,326   

8.50%, 07/25/22(b)

     184   
  

(Series 137) (Class 2)

  
1,474   

9.00%, 05/25/22(b)

     310   
  

Government National Mortgage
Assoc.

  
  

(Series 2011-51) (Class NI)

  
211,203   

4.50%, 10/20/37(b)

     19,842   
 

 

See accompanying Notes to Financial Statements  |  79


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Fixed Income Fund

 

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

Bonds & Notes — (continued)

  

AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS — (continued)

  
  

(Series 2010-101) (Class GI)

  
211,431   

4.50%, 02/20/38(b)

     21,965   
  

(Series 2010-30) (Class PI)

  
630,202   

4.50%, 03/20/38(b)

     62,510   
  

(Series 2010-44) (Class BI)

  
600,383   

4.50%, 04/20/38(b)

     64,726   
  

(Series 2009-118) (Class YI)

  
102,177   

4.50%, 05/20/38(b)

     10,473   
  

(Series 2010-130) (Class PI)

  
252,061   

4.50%, 08/16/39(b)

     35,528   
  

(Series 2010-75) (Class KI)

  
190,363   

5.00%, 12/20/35(b)

     14,888   
  

(Series 2010-42) (Class IA)

  
212,752   

5.00%, 10/20/37(b)

     21,843   
  

(Series 2010-2) (Class QI)

  
150,690   

5.00%, 01/20/38(b)

     18,454   
  

(Series 2009-103) (Class IT)

  
161,121   

5.00%, 09/20/38(b)

     20,140   
     

 

 

 
  

Total Agency Collateralized
Mortgage Obligations
(Cost $1,580,420)

         1,702,230   
     

 

 

 

AGENCY MORTGAGE BACKED - 14.5%

  
  

Federal Home Loan Mortgage
Corp.

  
2,508   

4.50%, 06/01/33

     2,704   
24,317   

4.50%, 02/01/35

     26,223   
69,746   

5.00%, 07/01/35

     78,248   
43,288   

5.00%, 07/01/35

     48,565   
31,761   

5.00%, 07/01/35

     35,633   
14,372   

5.00%, 07/01/35

     16,124   
13,654   

5.00%, 07/01/35

     15,318   
498,968   

5.00%, 06/01/41

     557,373   
14,922   

5.50%, 05/01/20

     16,358   
8,176   

5.50%, 05/01/20

     8,963   
5,844   

5.50%, 05/01/20

     6,406   
272,113   

5.50%, 01/01/38

     305,174   
118,477   

5.50%, 04/01/39

     130,598   
566   

6.00%, 04/01/17

     611   
3,029   

6.00%, 06/01/17

     3,269   
5,538   

6.00%, 08/01/17

     5,908   
3,192   

6.00%, 07/01/19

     3,544   
6,287   

6.00%, 05/01/20

     6,979   
152   

6.00%, 05/01/29

     170   
124   

6.00%, 07/01/29

     139   
14,985   

6.00%, 08/01/29

     16,794   
29,910   

6.00%, 06/01/33

     33,525   
29,269   

6.00%, 09/01/33

     32,806   
26,913   

6.00%, 10/01/33

     30,166   
13,632   

6.00%, 10/01/33

     15,280   
12,878   

6.00%, 10/01/33

     14,435   
82,729   

6.00%, 11/01/33

     92,728   
11,862   

6.00%, 01/01/34

     13,296   
3,215   

6.00%, 01/01/34

     3,604   
10,834   

6.00%, 03/01/34

     12,143   
10,720   

6.00%, 03/01/34

     12,014   
4,436   

6.00%, 04/01/34

     4,972   
3,755   

6.00%, 05/01/34

     4,209   
5,127   

6.00%, 10/01/34

     5,711   
14,582   

6.00%, 11/01/34

     16,215   
14,990   

6.00%, 12/01/34

     16,801   

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

AGENCY MORTGAGE BACKED — (continued)

  
5,862   

6.00%, 12/01/34

     6,571   
7,806   

6.00%, 03/01/35

     8,710   
15,832   

6.00%, 05/01/35

     17,664   
4,266   

6.00%, 05/01/35

     4,792   
3,988   

6.00%, 05/01/35

     4,477   
10,384   

6.00%, 11/01/36

     11,637   
215,469   

6.00%, 06/01/37

     240,401   
208,394   

6.00%, 11/01/37

     232,508   
3,050   

6.50%, 07/01/29

     3,584   
2,380   

6.50%, 08/01/29

     2,797   
704   

6.50%, 04/01/31

     803   
1,675   

7.00%, 10/01/16

     1,802   
230   

7.00%, 12/01/26

     265   
1,024   

7.00%, 06/01/29

     1,225   
1,492   

7.00%, 08/01/29

     1,784   
3,024   

7.00%, 12/01/29

     3,617   
3,128   

7.00%, 01/01/30

     3,726   
1,920   

7.00%, 02/01/30

     2,284   
436   

7.00%, 02/01/30

     519   
11,828   

7.00%, 04/01/31

     14,144   
54,371   

7.00%, 11/01/31

     64,295   
6,548   

7.00%, 07/01/34

     7,605   
2,809   

7.00%, 08/01/34

     3,262   
4,591   

7.00%, 12/01/34

     5,331   
4,472   

7.00%, 12/01/34

     5,194   
6,642   

7.00%, 02/01/35

     7,713   
53,542   

7.00%, 04/01/36

     61,954   
12,844   

7.00%, 07/01/36

     14,839   
6,378   

7.00%, 08/01/36

     7,369   
7,652   

7.50%, 01/01/27

     7,744   
810   

7.50%, 01/01/30

     944   
235   

7.50%, 02/01/30

     259   
89,806   

7.50%, 08/01/30

     96,632   
11,123   

7.50%, 12/01/30

     13,639   
1,918   

7.50%, 09/01/33

     2,078   
14,168   

8.00%, 11/01/30

     17,304   
21,376   

8.50%, 05/01/20

     21,502   
23,379   

8.50%, 11/01/20

     23,916   
15,447   

8.50%, 04/01/30

     19,467   
9,003   

8.50%, 05/01/30

     11,349   
3,181   

9.00%, 12/01/16

     3,529   
186   

9.50%, 04/01/21

     221   
  

Federal National Mortgage Assoc.

  
155,977   

1.79%, ARM(a)

     161,359   
10,675   

2.01%, ARM(a)

     11,205   
44,253   

2.31%, ARM(a)

     47,211   
723   

2.35%, ARM(a)

     740   
150,756   

2.42%, ARM(a)

     160,520   
114,701   

2.64%, ARM(a)

     123,445   
20,577   

2.65%, ARM(a)

     20,999   
1,178   

2.72%, ARM(a)

     1,233   
32,788   

2.73%, ARM(a)

     34,786   
1,375,000   

3.00%, TBA(e)

     1,451,914   
1,250,000   

3.50%, TBA(e)

     1,341,016   
1,680,000   

4.00%, TBA(e)

     1,810,463   
20,306   

4.00%, 05/01/19

     21,801   
74,123   

4.00%, 06/01/19

     79,583   
470,956   

4.00%, 01/01/41

     508,202   
566,164   

4.00%, 03/01/41

     611,116   
802,043   

4.00%, 12/01/41

     865,724   
715,839   

4.00%, 05/01/42

     797,058   
855,000   

4.50%, TBA(e)

     925,671   
18,830   

4.50%, 05/01/18

     20,378   
43,112   

4.50%, 05/01/19

     46,672   
24,088   

4.50%, 05/01/19

     26,076   
 

 

80  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Fixed Income Fund

 

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

Bonds & Notes — (continued)

  

AGENCY MORTGAGE BACKED — (continued)

  
23,533   

4.50%, 05/01/19

     25,476   
22,246   

4.50%, 05/01/19

     24,083   
7,993   

4.50%, 06/01/19

     8,653   
13,222   

4.50%, 02/01/20

     14,305   
37,463   

4.50%, 08/01/20

     40,533   
16,734   

4.50%, 07/01/33

     18,204   
11,248   

4.50%, 08/01/33

     12,236   
16,881   

4.50%, 04/01/34

     18,325   
487,002   

4.50%, 10/01/39

     527,435   
271,716   

4.50%, 02/01/40

     295,124   
874,517   

4.50%, 11/01/40

     949,856   
1,048,292   

4.50%, 01/01/41

     1,138,602   
981,930   

4.50%, 04/01/41

     1,066,523   
43,324   

5.00%, 07/01/20

     47,884   
87,236   

5.00%, 03/01/34

     95,886   
13,095   

5.00%, 10/01/34

     14,313   
40,501   

5.00%, 06/01/35

     46,156   
27,491   

5.00%, 06/01/35

     31,329   
24,836   

5.00%, 06/01/35

     28,304   
50,214   

5.00%, 07/01/35

     57,225   
38,181   

5.00%, 07/01/35

     41,806   
17,134   

5.00%, 07/01/35

     18,761   
9,227   

5.00%, 07/01/35

     10,292   
14,218   

5.00%, 08/01/35

     15,568   
42,053   

5.00%, 03/01/39

     46,360   
36,113   

5.00%, 04/01/39

     40,929   
32,630   

5.00%, 04/01/39

     36,360   
19,263   

5.00%, 04/01/39

     21,664   
44,526   

5.00%, 05/01/39

     49,282   
763,403   

5.00%, 06/01/41

     865,219   
3,207   

5.50%, 03/01/14

     3,477   
2,363   

5.50%, 03/01/14

     2,562   
5,756   

5.50%, 05/01/14

     6,241   
3,117   

5.50%, 06/01/14

     3,379   
5,124   

5.50%, 08/01/14

     5,555   
25,098   

5.50%, 06/01/20

     27,716   
22,526   

5.50%, 06/01/20

     24,876   
19,747   

5.50%, 06/01/20

     21,806   
19,688   

5.50%, 06/01/20

     21,741   
16,431   

5.50%, 06/01/20

     18,145   
16,304   

5.50%, 06/01/20

     17,972   
35,869   

5.50%, 07/01/20

     39,611   
27,884   

5.50%, 07/01/20

     30,792   
21,042   

5.50%, 07/01/20

     23,237   
35,657   

5.50%, 12/01/32

     39,860   
17,154   

5.50%, 01/01/33

     18,975   
31,033   

5.50%, 07/01/33

     34,967   
30,107   

5.50%, 08/01/33

     33,923   
156,346   

5.50%, 12/01/35

     172,453   
56,466   

5.50%, 05/01/37

     63,625   
147,883   

5.50%, 06/01/37

     163,119   
1,225   

5.50%, 07/01/37

     1,343   
330,622   

5.50%, 08/01/37

     365,097   
222,998   

5.50%, 04/01/38

     248,969   
458,236   

5.50%, 01/01/39

     502,581   
1,000,000   

6.00%, TBA(e)

     1,104,219   
3,082   

6.00%, 09/01/14

     3,195   
1,474   

6.00%, 11/01/14

     1,528   
638   

6.00%, 04/01/18

     689   
1,229   

6.00%, 05/01/19

     1,357   
4,765   

6.00%, 09/01/19

     5,265   
4,992   

6.00%, 10/01/19

     5,516   
8,304   

6.00%, 02/01/20

     9,175   
4,824   

6.00%, 05/01/20

     5,331   

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

AGENCY MORTGAGE BACKED — (continued)

  
11,192   

6.00%, 03/01/21

     12,367   
3,917   

6.00%, 02/01/29

     4,425   
4,184   

6.00%, 05/01/29

     4,726   
518   

6.00%, 05/01/29

     583   
2,842   

6.00%, 06/01/29

     3,210   
1,753   

6.00%, 07/01/29

     1,980   
16,359   

6.00%, 02/01/33

     18,544   
17,869   

6.00%, 03/01/33

     20,226   
5,655   

6.00%, 05/01/33

     6,410   
19,252   

6.00%, 06/01/33

     21,823   
18,857   

6.00%, 06/01/33

     21,375   
37,599   

6.00%, 07/01/33

     42,482   
12,840   

6.00%, 07/01/33

     14,555   
6,501   

6.00%, 07/01/33

     7,352   
45,822   

6.00%, 08/01/33

     51,940   
29,255   

6.00%, 08/01/33

     33,162   
32,690   

6.00%, 10/01/33

     37,055   
12,848   

6.00%, 10/01/33

     14,564   
9,190   

6.00%, 10/01/33

     10,417   
13,489   

6.00%, 11/01/33

     15,261   
21,666   

6.00%, 12/01/33

     24,559   
33,545   

6.00%, 01/01/34

     38,024   
6,621   

6.00%, 01/01/34

     7,481   
27,799   

6.00%, 02/01/34

     31,511   
440,880   

6.00%, 03/01/34

     495,042   
18,807   

6.00%, 04/01/34

     21,318   
29,798   

6.00%, 05/01/34

     33,777   
23,391   

6.00%, 07/01/34

     26,432   
6,097   

6.00%, 10/01/34

     6,911   
17,123   

6.00%, 11/01/34

     19,409   
10,023   

6.00%, 12/01/34

     11,361   
9,559   

6.00%, 12/01/34

     10,770   
2,930   

6.00%, 12/01/34

     3,282   
33,486   

6.00%, 01/01/35

     37,958   
21,678   

6.00%, 01/01/35

     24,572   
4,772   

6.00%, 01/01/35

     5,409   
24,379   

6.00%, 02/01/35

     27,634   
17,298   

6.00%, 03/01/35

     19,608   
8,179   

6.00%, 03/01/35

     9,228   
5,093   

6.00%, 04/01/35

     5,773   
45,640   

6.00%, 06/01/35

     51,491   
43,795   

6.00%, 06/01/35

     49,410   
39,483   

6.00%, 06/01/35

     44,545   
34,733   

6.00%, 06/01/35

     39,371   
33,634   

6.00%, 06/01/35

     37,947   
21,971   

6.00%, 06/01/35

     24,736   
7,536   

6.00%, 06/01/35

     8,531   
17,506   

6.00%, 07/01/35

     19,843   
13,314   

6.00%, 07/01/35

     15,021   
12,653   

6.50%, 08/01/17

     13,749   
6,018   

6.50%, 08/01/17

     6,548   
824   

6.50%, 09/01/17

     897   
1,753   

6.50%, 10/01/17

     1,912   
3,119   

6.50%, 10/01/18

     3,482   
6,430   

6.50%, 01/01/19

     7,178   
3,064   

6.50%, 03/01/19

     3,420   
2,009   

6.50%, 03/01/19

     2,242   
691   

6.50%, 05/01/24

     785   
805   

6.50%, 10/01/28

     949   
757   

6.50%, 05/01/29

     883   
692   

6.50%, 08/01/29

     813   
1,409   

6.50%, 01/01/32

     1,638   
920   

6.50%, 01/01/32

     1,070   
1,128   

6.50%, 07/01/32

     1,295   
4,123   

6.50%, 09/01/32

     4,714   
 

 

See accompanying Notes to Financial Statements  |  81


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Fixed Income Fund

 

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

Bonds & Notes — (continued)

  

AGENCY MORTGAGE BACKED — (continued)

  
3,723   

6.50%, 09/01/32

     4,275   
2,340   

6.50%, 11/01/32

     2,706   
3,247   

6.50%, 12/01/32

     3,713   
2,912   

6.50%, 01/01/33

     3,334   
2,122   

6.50%, 01/01/33

     2,454   
949   

6.50%, 01/01/33

     1,097   
4,907   

6.50%, 03/01/33

     5,610   
2,079   

6.50%, 05/01/33

     2,322   
2,539   

6.50%, 06/01/33

     2,920   
2,068   

6.50%, 06/01/33

     2,379   
14,131   

6.50%, 10/01/33

     16,155   
5,887   

6.50%, 11/01/33

     6,730   
7,508   

6.50%, 12/01/33

     8,580   
8,616   

6.50%, 01/01/34

     9,849   
769   

6.50%, 02/01/34

     862   
2,801   

6.50%, 03/01/34

     3,215   
2,617   

6.50%, 06/01/34

     2,994   
12,041   

6.50%, 07/01/34

     13,766   
9,671   

6.50%, 08/01/34

     11,048   
45,545   

6.50%, 08/01/36

     51,747   
23,045   

6.50%, 08/01/36

     26,324   
3   

7.00%, 08/01/13

     3   
3,910   

7.00%, 03/01/15

     4,081   
874   

7.00%, 10/01/16

     940   
19,416   

7.00%, 03/01/17

     21,127   
3,915   

7.00%, 04/01/17

     4,290   
7,845   

7.00%, 05/01/17

     8,441   
18,869   

7.00%, 07/01/17

     20,532   
9,589   

7.00%, 08/01/17

     10,434   
103,498   

7.00%, 03/01/29

     124,280   
7,213   

7.00%, 06/01/31

     8,653   
1,511   

7.00%, 01/01/32

     1,811   
15,952   

7.00%, 02/01/32

     19,159   
5,493   

7.00%, 10/01/32

     6,582   
174,698   

7.00%, 12/01/32

     209,314   
13,378   

7.00%, 04/01/33

     16,003   
1,909   

7.00%, 05/01/33

     2,154   
44,684   

7.00%, 11/01/33

     53,453   
3,083   

7.00%, 12/01/33

     3,489   
2,307   

7.00%, 02/01/34

     2,624   
4,806   

7.00%, 03/01/34

     5,614   
15,490   

7.00%, 06/01/34

     18,495   
16,948   

7.00%, 01/01/35

     20,237   
58,644   

7.00%, 05/01/35

     69,879   
43,281   

7.00%, 05/01/35

     51,573   
42,263   

7.00%, 01/01/36

     50,360   
56,517   

7.00%, 04/01/36

     67,430   
6   

7.50%, 08/01/13

     6   
37   

7.50%, 09/01/13

     37   
824   

7.50%, 02/01/15

     867   
182   

7.50%, 05/01/15

     192   
46   

7.50%, 09/01/15

     46   
11,120   

7.50%, 04/01/16

     12,051   
233   

7.50%, 06/01/17

     234   
32,176   

7.50%, 12/01/23

     37,646   
589   

7.50%, 12/01/26

     709   
3,925   

7.50%, 06/01/29

     4,781   
1,765   

7.50%, 07/01/29

     2,140   
430   

7.50%, 09/01/30

     439   
48,729   

7.50%, 10/01/30

     52,778   
3,956   

7.50%, 12/01/30

     4,405   
38,311   

7.50%, 01/01/31

     47,093   
3,777   

7.50%, 02/01/31

     4,632   
91,106   

7.50%, 04/01/31

     98,208   

Principal Amount ($)

  

Value ($)

 
  

 

  

 

 

 

AGENCY MORTGAGE BACKED — (continued)

  
4,446   

7.50%, 07/01/31

     5,477   
13,024   

7.50%, 09/01/31

     16,063   
4,941   

7.50%, 09/01/31

     6,087   
1,942   

7.50%, 10/01/31

     2,385   
12,967   

7.50%, 11/01/31

     15,991   
5,123   

7.50%, 01/01/32

     6,325   
2,670   

7.50%, 04/01/32

     3,150   
4,342   

7.50%, 05/01/32

     5,369   
89,033   

7.50%, 06/01/32

     109,683   
4,229   

7.50%, 06/01/32

     5,227   
2,317   

7.50%, 07/01/32

     2,846   
12,833   

7.50%, 09/01/32

     15,841   
1,205   

7.50%, 12/01/32

     1,293   
3,501   

7.50%, 01/01/33

     4,330   
2,661   

7.50%, 03/01/33

     2,954   
8,234   

7.50%, 04/01/33

     8,783   
3,147   

7.50%, 11/01/33

     3,205   
514   

7.50%, 12/01/33

     523   
4,037   

7.50%, 02/01/34

     4,998   
42,544   

7.50%, 03/01/34

     52,645   
2,463   

7.50%, 03/01/34

     2,710   
28,114   

7.50%, 05/01/34

     31,392   
213   

8.00%, 07/01/15

     214   
1,177   

8.00%, 12/01/15

     1,256   
57,849   

8.00%, 03/01/22

     59,876   
60,077   

8.00%, 04/01/23

     63,208   
1,362   

8.00%, 08/01/25

     1,397   
2,310   

8.00%, 11/01/25

     2,796   
13,868   

8.00%, 01/01/30

     14,045   
571   

8.00%, 09/01/30

     663   
8,563   

8.00%, 11/01/30

     10,610   
7,591   

8.00%, 12/01/30

     9,341   
7,483   

8.00%, 02/01/31

     7,689   
8,970   

8.00%, 10/01/31

     11,037   
5,726   

8.00%, 09/01/32

     7,149   
347   

8.00%, 12/01/32

     353   
725   

8.00%, 01/01/33

     749   
8,286   

8.00%, 11/01/33

     8,937   
5,624   

8.00%, 11/01/33

     7,027   
50,092   

8.50%, 02/01/18

     52,315   
45,361   

8.50%, 01/01/25

     46,646   
6,242   

8.50%, 06/01/28

     6,604   
18,684   

8.50%, 08/01/29

     21,710   
39,390   

8.50%, 08/01/30

     45,690   
4,275   

8.50%, 05/01/31

     5,378   
26,405   

8.50%, 07/01/31

     31,706   
4,065   

9.00%, 12/01/17

     4,531   
506   

9.00%, 05/01/21

     605   
2,897   

9.00%, 07/01/21

     3,011   
2,297   

9.00%, 07/01/21

     2,759   
1,083   

9.00%, 07/01/21

     1,089   
5,234   

9.00%, 12/01/22

     6,200   
28,636   

9.00%, 12/01/24

     29,280   
224,998   

9.00%, 03/01/31

     285,345   
14,575   

9.50%, 09/01/21

     15,302   
66,091   

9.75%, 02/01/21

     78,563   
  

Government National Mortgage
Assoc.

  
2,060,000   

3.50%, TBA(e)

     2,253,769   
725,000   

4.00%, TBA(e)

     799,539   
690,000   

4.00%, TBA(e)

     759,647   
22,462   

4.50%, 08/15/33

     24,805   
76,213   

4.50%, 10/15/33

     84,162   
20,051   

4.50%, 10/15/33

     22,142   
14,093   

4.50%, 10/15/33

     15,563   
 

 

82  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Fixed Income Fund

 

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

Bonds & Notes — (continued)

     

AGENCY MORTGAGE BACKED — (continued)

     
48,728   

4.50%, 09/15/34

        53,780   
14,562   

4.50%, 09/15/34

        16,054   
867,484   

4.50%, 03/20/41

        960,585   
11,111   

6.00%, 04/15/27

        12,729   
3,724   

6.00%, 04/15/30

        4,242   
12,373   

6.00%, 04/15/33

        14,200   
28,296   

6.00%, 05/15/33

        32,473   
5,253   

6.00%, 05/15/33

        6,028   
37,619   

6.00%, 07/15/33

        43,173   
18,603   

6.00%, 04/15/34

        21,190   
8,645   

6.00%, 03/15/35

        9,904   
13,952   

6.00%, 04/15/35

        15,983   
7,971   

6.00%, 04/15/35

        9,131   
1,576   

6.00%, 06/15/35

        1,786   
8,573   

6.00%, 09/15/36

        9,822   
5,353   

6.50%, 04/15/19

        5,972   
8,220   

6.50%, 02/15/24

        9,528   
1,276   

6.50%, 02/15/24

        1,479   
3,409   

6.50%, 04/15/24

        3,949   
9,063   

6.50%, 05/15/24

        10,527   
8,117   

6.50%, 06/15/24

        9,540   
16,068   

6.50%, 07/15/24

        18,647   
16,879   

6.50%, 04/15/28

        19,920   
6,168   

6.50%, 04/15/28

        7,279   
2,838   

6.50%, 04/15/28

        3,350   
14,589   

6.50%, 04/15/32

        17,407   
11,146   

6.50%, 08/15/32

        13,299   
5,824   

6.50%, 10/15/32

        6,968   
11,710   

6.50%, 01/15/33

        13,972   
11,698   

6.50%, 01/15/33

        13,998   
988   

6.50%, 01/15/33

        1,182   
3,615   

6.50%, 02/15/33

        4,324   
3,334   

6.50%, 03/15/33

        3,897   
1,791   

6.50%, 03/15/33

        2,142   
11,483   

6.50%, 05/15/33

        13,740   
9,404   

6.50%, 06/15/34

        11,276   
8,919   

6.50%, 06/15/34

        10,355   
9,034   

6.50%, 07/15/34

        10,832   
15,169   

6.50%, 08/15/34

        18,151   
5,041   

6.50%, 08/15/34

        5,853   
4,812   

6.50%, 08/15/34

        5,588   
8,369   

6.50%, 03/15/36

        10,036   
4,550   

6.50%, 04/15/36

        5,273   
7,052   

6.50%, 05/15/36

        8,171   
5,294   

6.50%, 05/15/36

        6,135   
9,425   

6.50%, 06/15/36

        10,918   
8,396   

6.50%, 07/15/36

        10,068   
8,142   

6.50%, 08/15/36

        9,569   
4,470   

6.50%, 08/15/36

        5,177   
2,279   

6.50%, 08/15/36

        2,646   
18,824   

7.00%, 12/15/18

        20,561   
25,398   

7.00%, 11/15/23

        29,817   
7,985   

7.00%, 01/15/28

        9,595   
11,765   

7.00%, 02/15/28

        14,137   
66,444   

7.00%, 03/15/31

        79,502   
36,979   

7.00%, 05/15/32

        44,143   
7,091   

7.00%, 06/15/34

        8,272   
7,264   

7.00%, 08/15/36

        8,619   
7,105   

7.00%, 08/15/36

        8,407   
6,780   

7.00%, 09/15/36

        8,077   
6,244   

7.00%, 09/15/36

        7,392   
6,037   

7.00%, 09/15/36

        7,144   
3,633   

7.00%, 09/15/36

        4,300   
7,712   

7.00%, 10/15/36

        9,139   

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

AGENCY MORTGAGE BACKED — (continued)

     
3,684   

7.00%, 10/15/36

        4,374   
16,188   

7.50%, 12/15/18

        18,224   
65,100   

7.50%, 12/15/19

        68,012   
2,374   

7.50%, 01/15/23

        2,786   
3,300   

7.50%, 07/15/23

        3,875   
5,222   

7.50%, 09/15/23

        5,957   
2,047   

7.50%, 09/15/23

        2,406   
7,455   

7.50%, 10/15/23

        8,763   
16,318   

7.50%, 12/15/23

        16,967   
47,193   

7.50%, 01/15/25

        48,457   
1,898   

7.50%, 01/15/28

        1,945   
7,800   

7.50%, 03/15/28

        8,291   
535   

7.50%, 11/15/31

        537   
4,087   

7.50%, 10/15/33

        5,055   
59,732   

8.00%, 07/15/17

        65,723   
429   

8.00%, 12/15/29

        435   
920   

8.00%, 02/15/30

        935   
1,046   

8.50%, 10/15/22

        1,052   
19,610   

9.00%, 11/15/16

        21,950   
4,207   

9.00%, 01/15/17

        4,718   
3,086   

9.00%, 11/15/17

        3,309   
888   

9.00%, 11/15/17

        961   
1,392   

9.00%, 12/15/21

        1,530   
     

 

 
  

Total Agency Mortgage Backed
(Cost $29,080,676)

        30,236,512   
     

 

 

ASSET BACKED - 2.1%

     
  

Ally Master Owner Trust

     
  

(Series 2011-1) (Class A2)

     
750,000   

2.15%, 01/15/16

        763,701   
  

(Series 2010-3) (Class C)

     
250,000   

3.87%, 04/15/15(f)

        251,712   
  

Avis Budget Rental Car Funding

     
  

AESOP LLC

     
  

(Series 2009-1A) (Class A)

     
83,333   

9.31%, 10/20/13(f)

        83,766   
  

Ford Credit Auto Owner Trust

     
  

(Series 2012-A) (Class C)

     
150,000   

2.40%, 11/15/17

        151,988   
  

Ford Credit Floorplan Master

     
  

Owner Trust

     
  

(Series 2010-1) (Class C)

     
1,000,000   

2.87%, 12/15/14(a)(f)

        1,006,231   
  

Hertz Vehicle Financing LLC

     
  

(Series 2010-1A) (Class B1)

     
250,000   

5.02%, 02/25/15(f)

        258,668   
  

(Series 2009-2A) (Class A2)

     
1,575,000   

5.29%, 03/25/16(f)

        1,728,929   
  

Popular ABS Mortgage

     
  

Pass-Through Trust

     
  

(Series 2005-5) (Class AF4)

     
100,000   

5.30%, 11/25/35(g)

        63,760   
     

 

 
  

Total Asset Backed
(Cost $4,183,768)

        4,308,755   
     

 

 

CORPORATE NOTES - 11.2%

     

AUTOMOBILES & COMPONENTS - 0.1%

     
  

American Axle & Manufacturing,

     
  

Inc.

     
98,000   

7.88%, 03/01/17(f)

        102,410   
 

 

See accompanying Notes to Financial Statements  |  83


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Fixed Income Fund

 

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

Bonds & Notes — (continued)

     

CORPORATE NOTES — (continued)

     

AUTOMOBILES &
COMPONENTS — (continued)

     
  

Visteon Corp.

     
96,000   

6.75%, 04/15/19

        101,280   
     

 

 
           203,690   
     

 

 

BANKS - 0.7%

     
  

Banco Mercantil del Norte SA

     
50,000   

6.86%, 10/13/21(a)(f)

        54,375   
  

Bombardier, Inc.

     
88,000   

7.75%, 03/15/20(f)

        101,420   
  

Central American Bank for

     
  

Economic Integration

     
140,000   

5.38%, 09/24/14(f)

        150,537   
  

European Investment Bank

     
160,000   

0.88%, 12/15/14

        161,435   
200,000   

4.88%, 01/17/17

        233,750   
  

Kreditanstalt fuer Wiederaufbau

     
229,000   

2.00%, 10/04/22

        227,321   
31,000   

4.50%, 07/16/18

        36,780   
  

National Agricultural Cooperative

     
  

Federation

     
38,000   

4.25%, 01/28/16(f)

        40,970   
  

Nordea Bank AB

     
200,000   

3.13%, 03/20/17(f)

        209,378   
  

Royal Bank of Canada

     
137,000   

1.20%, 09/19/17

        138,029   
  

Santander Holdings USA, Inc.

     
46,000   

3.00%, 09/24/15

        46,572   
     

 

 
           1,400,567   
     

 

 

CAPITAL GOODS - 0.5%

     
  

Amsted Industries, Inc.

     
70,000   

8.13%, 03/15/18(f)

        75,950   
  

Cargill, Inc.

     
240,000   

5.20%, 01/22/13(f)

        243,581   
96,000   

6.00%, 11/27/17(f)

        116,392   
  

Case New Holland, Inc.

     
58,000   

7.88%, 12/01/17

        68,295   
  

Caterpillar, Inc.

     
113,000   

1.50%, 06/26/17

        115,514   
  

Deere & Co.

     
90,000   

3.90%, 06/09/42

        93,504   
  

Raytheon Co.

     
106,000   

1.40%, 12/15/14

        107,745   
  

Textron, Inc.

     
81,000   

6.20%, 03/15/15

        89,026   
  

United Technologies Corp.

     
50,000   

1.80%, 06/01/17

        51,917   
75,000   

4.50%, 06/01/42

        84,419   
     

 

 
           1,046,343   
     

 

 

COMMERCIAL & PROFESSIONAL
SERVICES - 0.1%

     
  

ADT Corp.

     
66,000   

2.25%, 07/15/17(f)

        68,007   
66,000   

3.50%, 07/15/22(f)

        68,709   
89,000   

4.88%, 07/15/42(f)

        96,737   
     

 

 
           233,453   
     

 

 

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

CORPORATE NOTES — (continued)

     

CONSUMER DURABLES & APPAREL - 0.2%

     
  

DR Horton, Inc.

     
85,000   

4.38%, 09/15/22

        84,681   
  

Hanesbrands, Inc.

     
118,000   

6.38%, 12/15/20

        128,620   
  

Levi Strauss & Co.

     
200,000   

7.63%, 05/15/20(h)

        217,000   
     

 

 
           430,301   
     

 

 

CONSUMER SERVICES - 0.2%

     
  

Marriott International, Inc.

     
119,000   

3.25%, 09/15/22

        119,870   
  

McDonald’s Corp., MTN

     
100,000   

1.88%, 05/29/19

        103,901   
  

Vail Resorts, Inc.

     
151,000   

6.50%, 05/01/19(f)

        164,968   
     

 

 
           388,739   
     

 

 

DIVERSIFIED FINANCIAL SERVICES - 0.2%

     
  

Hyundai Capital America

     
92,000   

1.63%, 10/02/15(f)

        92,113   
135,000   

2.13%, 10/02/17(f)

        135,178   
  

John Deere Capital Corp., MTN

     
68,000   

3.15%, 10/15/21

        72,678   
  

Woodside Finance, Ltd.

     
189,000   

4.50%, 11/10/14(f)

        200,549   
     

 

 
           500,518   
     

 

 

DIVERSIFIED FINANCIALS - 1.2%

     
  

ABB Finance USA, Inc.

     
88,000   

1.63%, 05/08/17

        89,521   
81,000   

2.88%, 05/08/22

        83,913   
  

American Express Credit Corp.,

     
  

MTN

     
63,000   

1.75%, 06/12/15

        64,483   
  

Bank of America Corp.

     
192,000   

5.70%, 01/24/22

        225,933   
145,000   

5.75%, 12/01/17

        167,020   
  

Barclays Bank PLC

     
248,000   

2.25%, 05/10/17(f)

        255,860   
  

Citigroup, Inc.

     
128,000   

4.45%, 01/10/17

        140,730   
166,000   

5.00%, 09/15/14

        175,165   
63,000   

5.88%, 01/30/42

        76,192   
100,000   

6.13%, 08/25/36

        108,937   
  

Credit Suisse AG

     
200,000   

2.60%, 05/27/16(f)

        211,093   
  

Dolphin Subsidiary II, Inc.

     
96,000   

7.25%, 10/15/21(f)

        109,920   
  

Ford Motor Credit Co. LLC

     
99,000   

3.00%, 06/12/17

        100,881   
  

Goldman Sachs Capital I

     
88,000   

6.35%, 02/15/34

        88,673   
  

Goldman Sachs Group, Inc. (The)

     
127,000   

5.75%, 01/24/22

        146,557   
69,000   

6.75%, 10/01/37

        74,149   
  

JPMorgan Chase & Co.

     
88,000   

4.35%, 08/15/21

        97,172   
75,000   

4.50%, 01/24/22

        83,354   
  

Morgan Stanley

     
83,000   

5.50%, 07/28/21

        90,994   
8,000   

5.75%, 01/25/21

        8,796   
 

 

84  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Fixed Income Fund

 

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

Bonds & Notes — (continued)

     

CORPORATE NOTES — (continued)

     

DIVERSIFIED FINANCIALS — (continued)

     
  

Toyota Motor Credit Corp., MTN

     
127,000   

1.75%, 05/22/17

        130,622   
     

 

 
           2,529,965   
     

 

 

ENERGY - 1.9%

     
  

Anadarko Petroleum Corp.

     
90,000   

5.95%, 09/15/16

        104,376   
78,000   

6.20%, 03/15/40

        95,923   
  

BP Capital Markets PLC

     
70,000   

1.85%, 05/05/17

        71,580   
160,000   

2.25%, 11/01/16

        167,651   
  

Cameron International Corp.

     
50,000   

3.60%, 04/30/22

        51,553   
  

COSL Finance BVI, Ltd.

     
200,000   

3.25%, 09/06/22(f)

        198,955   
  

Denbury Resources, Inc.

     
83,000   

6.38%, 08/15/21

        90,470   
67,000   

8.25%, 02/15/20

        75,878   
  

Devon Energy Corp.

     
101,000   

1.88%, 05/15/17

        103,069   
  

Ecopetrol SA

     
19,000   

7.63%, 07/23/19

        24,415   
  

Energy Transfer Equity LP

     
73,000   

7.50%, 10/15/20

        83,220   
  

Energy Transfer Partners LP

     
24,000   

6.50%, 02/01/42

        27,791   
77,000   

6.70%, 07/01/18

        91,537   
  

Enterprise Products Operating LLC

     
92,000   

1.25%, 08/13/15

        92,978   
46,000   

4.45%, 02/15/43

        45,687   
  

EOG Resources, Inc.

     
46,000   

2.63%, 03/15/23

        46,602   
  

Forest Oil Corp.

     
96,000   

7.25%, 06/15/19(h)

        95,760   
  

Kinder Morgan Energy Partners LP

     
46,000   

3.45%, 02/15/23

        47,462   
46,000   

5.00%, 08/15/42

        47,950   
  

Korea National Oil Corp.

     
200,000   

3.13%, 04/03/17(f)

        210,648   
  

Linn Energy LLC

     
79,000   

8.63%, 04/15/20

        86,900   
  

NAK Naftogaz Ukraine

     
100,000   

9.50%, 09/30/14

        102,130   
  

Newfield Exploration Co.

     
10,000   

5.63%, 07/01/24

        11,112   
96,000   

5.75%, 01/30/22

        107,760   
  

Nexen, Inc.

     
115,000   

6.40%, 05/15/37

        146,484   
  

Odebrecht Drilling Norbe VII/IX,

     
  

Ltd.

     
97,000   

6.35%, 06/30/21(f)(h)

        109,562   
  

ONEOK Partners LP

     
69,000   

2.00%, 10/01/17

        70,363   
68,000   

3.38%, 10/01/22

        68,475   
62,000   

6.13%, 02/01/41

        74,743   
  

Peabody Energy Corp.

     
56,000   

6.25%, 11/15/21(f)

        56,000   
  

Petrobras International Finance Co.

     
41,000   

2.88%, 02/06/15

        42,243   
128,000   

3.50%, 02/06/17

        134,187   

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

CORPORATE NOTES — (continued)

     

ENERGY — (continued)

     
45,000   

3.88%, 01/27/16

        47,826   
  

Petroleos Mexicanos

     
40,000   

6.00%, 03/05/20

        48,000   
19,000   

6.50%, 06/02/41

        23,778   
  

Power Sector Assets & Liabilities

     
  

Management Corp.

     
100,000   

7.39%, 12/02/24(f)

        139,500   
  

Pride International, Inc.

     
107,000   

6.88%, 08/15/20

        135,668   
  

Range Resources Corp.

     
96,000   

5.75%, 06/01/21

        103,680   
  

Schlumberger Investment SA

     
138,000   

2.40%, 08/01/22(f)

        136,897   
  

Total Capital International SA

     
234,000   

1.55%, 06/28/17

        238,660   
138,000   

2.70%, 01/25/23

        140,977   
  

Transocean, Inc.

     
45,000   

3.80%, 10/15/22

        45,327   
  

Weatherford International, Ltd.

     
82,000   

4.50%, 04/15/22

        85,920   
77,000   

5.95%, 04/15/42

        81,289   
     

 

 
           4,010,986   
     

 

 

FOOD & STAPLES RETAILING - 0.2%

     
  

CVS Caremark Corp.

     
61,000   

3.25%, 05/18/15

        64,902   
  

Ingles Markets, Inc.

     
194,000   

8.88%, 05/15/17

        210,005   
  

Walgreen Co.

     
64,000   

1.80%, 09/15/17

        64,799   
64,000   

3.10%, 09/15/22

        65,088   
     

 

 
           404,794   
     

 

 

FOOD, BEVERAGE & TOBACCO - 0.9%

     
  

Altria Group, Inc.

     
69,000   

4.25%, 08/09/42

        68,869   
  

Anheuser-Busch InBev Worldwide,

     
  

Inc.

     
139,000   

2.50%, 07/15/22

        141,274   
97,000   

3.63%, 04/15/15

        104,231   
123,000   

5.38%, 11/15/14

        135,375   
  

Archer-Daniels-Midland Co.

     
64,000   

5.77%, 03/01/41

        83,189   
  

Campbell Soup Co.

     
46,000   

2.50%, 08/02/22

        46,071   
30,000   

3.80%, 08/02/42

        29,887   
  

Coca-Cola Co. (The)

     
119,000   

3.30%, 09/01/21(f)

        132,783   
  

Diageo Capital PLC

     
134,000   

1.50%, 05/11/17

        136,479   
  

Diageo Investment Corp.

     
142,000   

2.88%, 05/11/22

        148,350   
40,000   

4.25%, 05/11/42

        43,700   
  

Kraft Foods Group, Inc.

     
58,000   

1.63%, 06/04/15(f)

        58,917   
100,000   

2.25%, 06/05/17(f)

        103,064   
85,000   

5.00%, 06/04/42(f)

        95,208   
  

Lorillard Tobacco Co.

     
108,000   

3.50%, 08/04/16

        114,415   
  

PepsiCo, Inc.

     
136,000   

2.75%, 03/05/22

        141,485   
 

 

See accompanying Notes to Financial Statements  |  85


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Fixed Income Fund

 

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

Bonds & Notes — (continued)

     

CORPORATE NOTES — (continued)

     

FOOD, BEVERAGE & TOBACCO — (continued)

     
  

Philip Morris International, Inc.

     
111,000   

2.50%, 05/16/16

        117,363   
92,000   

3.88%, 08/21/42

        92,878   
     

 

 
           1,793,538   
     

 

 

HEALTH CARE EQUIPMENT &
SERVICES - 0.5%

     
  

Cigna Corp.

     
92,000   

2.75%, 11/15/16

        97,113   
72,000   

5.38%, 02/15/42

        80,975   
  

Covidien International Finance SA

     
75,000   

1.35%, 05/29/15

        76,016   
  

DaVita, Inc.

     
34,000   

5.75%, 08/15/22

        35,530   
96,000   

6.38%, 11/01/18

        102,720   
  

Dentsply International, Inc.

     
51,000   

2.75%, 08/15/16

        52,633   
109,000   

4.13%, 08/15/21

        114,760   
  

Fresenius Medical Care US
Finance, Inc.

     
51,000   

5.75%, 02/15/21(f)

        54,825   
  

HCA, Inc.

     
114,000   

6.50%, 02/15/20

        127,110   
  

Roche Holdings, Inc.

     
18,000   

6.00%, 03/01/19(f)

        22,630   
  

WellPoint, Inc.

     
64,000   

1.25%, 09/10/15

        64,493   
92,000   

1.88%, 01/15/18

        92,820   
104,000   

3.30%, 01/15/23

        105,418   
     

 

 
           1,027,043   
     

 

 

HOTELS, RESTAURANTS & LEISURE - 0.0%

     
  

CityCenter Holdings
LLC/CityCenter Finance Corp.

     
58,000   

7.63%, 01/15/16

        62,205   
     

 

 

INSURANCE - 0.3%

     
  

Berkshire Hathaway Finance Corp.

     
101,000   

1.60%, 05/15/17

        103,464   
115,000   

3.00%, 05/15/22

        119,467   
  

CNA Financial Corp.

     
79,000   

5.88%, 08/15/20

        92,381   
  

Liberty Mutual Group, Inc.

     
24,000   

4.95%, 05/01/22(f)

        25,152   
48,000   

6.50%, 05/01/42(f)

        52,140   
  

Prudential Financial, Inc., MTN

     
51,000   

5.63%, 05/12/41

        57,584   
  

Willis Group Holdings PLC

     
110,000   

4.13%, 03/15/16

        116,858   
     

 

 
           567,046   
     

 

 

MATERIALS - 0.4%

     
  

Anglo American Capital PLC

     
200,000   

2.63%, 09/27/17(f)

        200,913   
  

Corp Nacional del Cobre de Chile

     
55,000   

4.25%, 07/17/42(f)

        54,667   
22,000   

5.63%, 09/21/35(f)

        26,570   
  

Eastman Chemical Co.

     
244,000   

2.40%, 06/01/17

        255,117   
  

Kinross Gold Corp.

     
30,000   

6.88%, 09/01/41

        30,699   

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

CORPORATE NOTES — (continued)

     

MATERIALS — (continued)

     
  

Newcrest Finance Pty, Ltd.

     
92,000   

4.20%, 10/01/22(f)

        92,808   
  

Xstrata Finance Canada, Ltd.

     
108,325   

5.80%, 11/15/16(f)

        122,503   
     

 

 
           783,277   
     

 

 

MEDIA - 0.5%

     
  

CCO Holdings LLC

     
106,000   

8.13%, 04/30/20

        120,310   
  

DIRECTV Holdings LLC/DIRECTV
Financing Co., Inc.

     
24,000   

2.40%, 03/15/17

        24,668   
50,000   

4.75%, 10/01/14

        53,647   
116,000   

5.15%, 03/15/42

        118,465   
  

Globo Comunicacao e
Participacoes SA

     
100,000   

6.25%, 07/20/49(f)(g)

        109,000   
  

News America, Inc.

     
43,000   

6.65%, 11/15/37

        54,750   
  

Omnicom Group, Inc.

     
132,000   

3.63%, 05/01/22

        139,701   
  

Time Warner Cable, Inc.

     
123,000   

6.75%, 07/01/18

        154,879   
  

Time Warner, Inc.

     
32,000   

3.15%, 07/15/15

        34,173   
35,000   

4.90%, 06/15/42

        38,557   
  

Viacom, Inc.

     
112,000   

2.50%, 12/15/16

        118,101   
  

WPP Finance 2010

     
46,000   

3.63%, 09/07/22

        46,432   
46,000   

5.13%, 09/07/42

        45,539   
     

 

 
           1,058,222   
     

 

 

PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES - 0.9%

     
  

Agilent Technologies, Inc.

     
64,000   

3.20%, 10/01/22

        64,739   
76,000   

5.50%, 09/14/15

        85,357   
  

Allergan, Inc.

     
38,000   

3.38%, 09/15/20

        41,205   
  

Amgen, Inc.

     
79,000   

5.38%, 05/15/43

        91,914   
35,000   

5.65%, 06/15/42

        41,941   
  

Aristotle Holding, Inc.

     
230,000   

2.65%, 02/15/17(f)

        241,267   
46,000   

3.90%, 02/15/22(f)

        50,214   
52,000   

4.75%, 11/15/21(f)

        60,280   
48,000   

6.13%, 11/15/41(f)

        62,553   
  

AstraZeneca PLC

     
92,000   

1.95%, 09/18/19

        93,764   
92,000   

4.00%, 09/18/42

        94,589   
  

Cardinal Health, Inc.

     
117,000   

1.90%, 06/15/17(h)

        119,184   
  

Express Scripts, Inc.

     
155,000   

3.13%, 05/15/16

        165,432   
  

Merck&Co.,Inc.

     
92,000   

2.40%, 09/15/22

        92,940   
  

Mylan, Inc.

     
124,000   

7.88%, 07/15/20(f)

        139,810   
  

Novartis Capital Corp.

     
110,000   

2.40%, 09/21/22

        111,544   
28,000   

3.70%, 09/21/42

        29,082   
 

 

86  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Fixed Income Fund

 

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

Bonds & Notes — (continued)

     

CORPORATE NOTES — (continued)

     

PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES — (continued)

     
  

Takeda Pharmaceutical Co., Ltd.

     
200,000   

1.63%, 03/17/17(f)

        202,483   
  

Watson Pharmaceuticals, Inc.

     
64,000   

1.88%, 10/01/17

        64,789   
46,000   

3.25%, 10/01/22

        46,686   
37,000   

4.63%, 10/01/42

        38,036   
     

 

 
           1,937,809   
     

 

 

REAL ESTATE - 0.2%

     
  

AvalonBay Communities, Inc.

     
78,000   

2.95%, 09/15/22

        77,919   
  

Boston Properties LP

     
100,000   

3.85%, 02/01/23

        105,543   
  

DDR Corp.

     
66,000   

4.63%, 07/15/22

        71,905   
  

Duke Realty LP

     
109,000   

6.50%, 01/15/18

        126,713   
  

Host Hotels & Resorts LP

     
21,000   

4.75%, 03/01/23

        21,866   
48,000   

6.00%, 11/01/20

        53,280   
     

 

 
           457,226   
     

 

 

SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT - 0.0%

     
  

Texas Instruments, Inc.

     
69,000   

1.65%, 08/03/19

        69,436   
     

 

 

SOFTWARE & SERVICES - 0.1%

     
  

eBay, Inc.

     
65,000   

1.35%, 07/15/17

        65,855   
46,000   

2.60%, 07/15/22

        46,419   
55,000   

4.00%, 07/15/42

        53,770   
     

 

 
           166,044   
     

 

 

TECHNOLOGY HARDWARE &
EQUIPMENT - 0.0%

     
  

Hewlett-Packard Co.

     
46,000   

4.05%, 09/15/22(h)

        46,632   
  

Jabil Circuit, Inc.

     
10,000   

4.70%, 09/15/22

        10,000   
     

 

 
           56,632   
     

 

 

TELECOMMUNICATION SERVICES - 0.9%

     
  

America Movil SAB de CV

     
200,000   

2.38%, 09/08/16

        209,118   
  

AT&T, Inc.

     
153,000   

0.88%, 02/13/15

        154,399   
104,000   

1.60%, 02/15/17

        106,808   
88,000   

2.95%, 05/15/16

        94,643   
72,000   

5.55%, 08/15/41

        89,981   
99,000   

6.40%, 05/15/38

        131,253   
  

CenturyLink, Inc.

     
18,000   

5.80%, 03/15/22

        19,623   
27,000   

7.65%, 03/15/42

        28,853   
  

Cincinnati Bell, Inc.

     
124,000   

8.25%, 10/15/17

        132,990   
  

Corning, Inc.

     
48,000   

4.75%, 03/15/42

        52,086   
  

Crown Castle Towers LLC

     
107,000   

4.88%, 08/15/20(f)

        120,606   

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

CORPORATE NOTES — (continued)

     

TELECOMMUNICATION
SERVICES — (continued)

     
10,000   

6.11%, 01/15/20(f)

        12,062   
  

Frontier Communications Corp.

     
96,000   

7.13%, 03/15/19(f)

        102,720   
  

Hughes Satellite Systems Corp.

     
70,000   

6.50%, 06/15/19

        75,250   
  

Koninklijke Philips Electronics N.V.

     
18,000   

5.00%, 03/15/42

        20,367   
  

PAETEC Holding Corp.

     
86,000   

8.88%, 06/30/17

        93,740   
  

Verizon Communications, Inc.

     
254,000   

2.00%, 11/01/16

        265,818   
  

Vodafone Group PLC

     
92,000   

2.50%, 09/26/22

        92,064   
     

 

 
           1,802,381   
     

 

 

TRANSPORTATION - 0.1%

     
  

CSX Corp.

     
102,000   

4.25%, 06/01/21

        114,789   
  

United Parcel Service, Inc.

     
92,000   

2.45%, 10/01/22

        93,045   
     

 

 
           207,834   
     

 

 

UTILITIES - 1.1%

     
  

AES Panama SA

     
60,000   

6.35%, 12/21/16(f)

        66,150   
  

Arizona Public Service Co.

     
70,000   

6.25%, 08/01/16

        82,417   
  

Banco do Nordeste do Brasil SA

     
100,000   

3.63%, 11/09/15(f)

        103,000   
  

Calpine Corp.

     
15,000   

7.25%, 10/15/17(f)

        16,088   
  

Carolina Power & Light Co.

     
50,000   

2.80%, 05/15/22(h)

        52,136   
  

Consolidated Edison Co. of New
York, Inc.

     
11,000   

5.85%, 04/01/18

        13,654   
121,000   

6.65%, 04/01/19

        156,714   
  

Dominion Resources, Inc.

     
76,000   

1.95%, 08/15/16

        78,623   
43,000   

4.90%, 08/01/41

        49,983   
  

Duke Energy Corp.

     
92,000   

1.63%, 08/15/17

        92,378   
230,000   

3.05%, 08/15/22

        232,700   
  

Empresa de Energia de Bogota SA

     
19,000   

6.13%, 11/10/21(f)

        20,995   
  

Exelon Corp.

     
117,000   

4.90%, 06/15/15

        128,685   
  

Florida Power & Light Co.

     
95,000   

4.13%, 02/01/42

        103,785   
  

Georgia Power Co.

     
50,000   

4.30%, 03/15/42

        53,565   
  

Great Plains Energy, Inc.

     
111,000   

4.85%, 06/01/21

        123,317   
  

Majapahit Holding BV

     
100,000   

7.75%, 10/17/16(f)

        118,875   
  

Midamerican Energy Holdings Co.

     
9,000   

6.13%, 04/01/36

        11,554   
  

NextEra Energy Capital Holdings, Inc.

     
167,000   

2.60%, 09/01/15

        173,264   
 

 

See accompanying Notes to Financial Statements  |  87


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Fixed Income Fund

 

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

Bonds & Notes — (continued)

     

CORPORATE NOTES — (continued)

     

UTILITIES — (continued)

     
  

Nisource Finance Corp.

     
113,000   

3.85%, 02/15/23

        118,777   
  

Oglethorpe Power Corp.

     
57,000   

5.38%, 11/01/40(h)

        69,150   
  

Pacific Gas & Electric Co.

     
71,000   

6.05%, 03/01/34

        93,624   
  

PacifiCorp

     
6,000   

6.25%, 10/15/37

        8,251   
  

Potomac Edison Co. (The)

     
112,000   

5.35%, 11/15/14

        121,132   
  

Sempra Energy

     
103,000   

2.30%, 04/01/17

        107,911   
     

 

 
           2,196,728   
     

 

 
  

Total Corporate Notes
(Cost $22,000,109)

        23,334,777   
     

 

 

MUNICIPAL BONDS AND NOTES - 0.3%

     
  

American Municipal Power, Inc.

     
45,000   

6.27%, 02/15/50

        52,498   
  

Municipal Electric Authority of
Georgia

     
68,000   

6.64%, 04/01/57

        79,048   
  

New Jersey State Turnpike
Authority

     
80,000   

7.41%, 01/01/40

        118,129   
  

New Jersey Transportation Trust
Fund Authority

     
50,000   

6.88%, 12/15/39

        57,800   
  

Port Authority of New York & New
Jersey

     
105,000   

4.46%, 10/01/62

        105,000   
  

South Carolina State Public
Service Authority

     
55,000   

6.45%, 01/01/50

        74,763   
  

State of California, GO

     
75,000   

5.70%, 11/01/21

        85,235   
     

 

 
  

Total Municipal Bonds and Notes
(Cost $495,661)

        572,473   
     

 

 

NON-AGENCY COLLATERALIZED MORTGAGE
BACKED SECURITIES - 2.0%

     
  

Banc of America Commercial
Mortgage, Inc.

     
  

(Series 2005-6) (Class A4)

     
110,000   

5.36%, 09/10/47(a)

        124,149   
  

(Series 2006-4) (Class AM)

     
50,000   

5.68%, 07/10/46

        55,934   
  

(Series 2007-4) (Class A4)

     
50,000   

5.92%, 02/10/51(a)

        59,505   
  

(Series 2008-1) (Class A4)

     
50,000   

6.40%, 02/10/51(a)

        61,008   
  

Bear Stearns Commercial
Mortgage Securities

     
  

(Series 2005-T18) (Class A4)

     
115,000   

4.93%, 02/13/42(a)

        125,970   
  

(Series 2006-PW11) (Class A2)

     
57,106   

5.57%, 03/11/39(a)

        57,585   

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

NON-AGENCY COLLATERALIZED MORTGAGE
BACKED SECURITIES — (continued)

     
  

(Series 2006-T22) (Class AM)

     
110,000   

5.71%, 04/12/38(a)

        120,892   
  

Citigroup Commercial Mortgage
Trust

     
  

(Series 2006-C5) (Class AJ)

     
50,000   

5.48%, 10/15/49

        46,195   
  

Commercial Mortgage Pass
Through Certificates

     
  

(Series 2005-LP5) (Class A4)

     
60,000   

4.98%, 05/10/43(a)

        66,218   
  

(Series 2006-C7) (Class AM)

     
90,000   

5.97%, 06/10/46(a)

        96,574   
  

Greenwich Capital Commercial
Funding Corp.

     
  

(Series 2007-GG11) (Class A2)

     
564,069   

5.60%, 12/10/49

        580,789   
  

GS Mortgage Securities Corp. II

     
  

(Series 2011-GC5) (Class A2)

     
110,000   

3.00%, 08/10/44

        118,118   
  

(Series 2011-GC5) (Class B)

     
30,000   

5.47%, 08/10/44(a)(f)

        34,183   
  

JP Morgan Chase Commercial
Mortgage Securities Corp.

     
  

(Series 2012-CBX) (Class AS)

     
90,000   

4.27%, 06/15/45

        99,390   
  

(Series 2005-LDP1) (Class A4)

     
50,000   

5.04%, 03/15/46(a)

        54,567   
  

(Series 2005-CB11) (Class A4)

     
440,000   

5.34%, 08/12/37(a)

        486,014   
  

(Series 2006-LDP8) (Class AM)

     
100,000   

5.44%, 05/15/45

        111,471   
  

(Series 2007-CB18) (Class A4)

     
220,000   

5.44%, 06/12/47

        254,952   
  

LB-UBS Commercial Mortgage
Trust

     
  

(Series 2005-C5) (Class A4)

     
270,000   

4.95%, 09/15/30

        298,162   
  

(Series 2006-C1) (Class A4)

     
120,000   

5.16%, 02/15/31

        134,863   
  

(Series 2006-C4) (Class A4)

     
50,000   

6.06%, 06/15/38(a)

        57,985   
  

Merrill Lynch Countrywide
Commercial Mortgage Trust

     
  

(Series 2006-3) (Class AJ)

     
50,000   

5.49%, 07/12/46(a)

        43,896   
  

Morgan Stanley Capital I

     
  

(Series 2004-T13) (Class A4)

     
200,000   

4.66%, 09/13/45

        207,908   
  

(Series 2005-IQ9) (Class A5)

     
300,000   

4.70%, 07/15/56

        323,534   
  

(Series 2006-T21) (Class A4)

     
150,000   

5.16%, 10/12/52(a)

        168,854   
  

(Series 2007-IQ16) (Class A2)

     
19,301   

5.62%, 12/12/49

        19,292   
  

(Series 2006-IQ11) (Class B)

     
100,000   

5.90%, 10/15/42(a)

        84,082   
  

(Series 2006-T23) (Class A4)

     
50,000   

5.99%, 08/12/41(a)

        58,702   
  

(Series 2008-T29) (Class AM)

     
70,000   

6.46%, 01/11/43(a)

        82,793   
 

 

88  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Fixed Income Fund

 

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

Bonds & Notes — (continued)

     

NON-AGENCY COLLATERALIZED MORTGAGE
BACKED SECURITIES — (continued)

     
  

Wachovia Bank Commercial
Mortgage Trust

     
  

(Series 2006-C23) (Class AM)

     
120,000   

5.47%, 01/15/45(a)

        132,281   
  

Wells Fargo Commercial Mortgage
Trust

     
  

(Series 2012-LC5) (Class C)

     
20,000   

4.69%, 10/15/45(a)

        20,499   
     

 

 
  

Total Non-Agency Collateralized
Mortgage Backed Securities
(Cost $3,916,637)

        4,186,365   
     

 

 

NON-AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS - 0.0%

     
  

Collateralized Mortgage Obligation
Trust

     
  

(Series 55) (Class B)

     
1,441   

0.00%, 11/01/18(c)(d)

        1,381   
  

Credit Suisse First Boston
Mortgage Securities Corp.

     
  

(Series 2005-9) (Class CB1)

     
96,594   

5.32%, 10/25/35(a)

        3,910   
  

Credit Suisse Mortgage Capital
Certificates

     
  

(Series 2006-1) (Class CB1)

     
32,514   

5.53%, 02/25/36(a)

        617   
  

MASTR Alternative Loans Trust

     
  

(Series 2003-5) (Class 15AX)

     
53,363   

5.00%, 08/25/18(b)

        4,894   
  

Wells Fargo Mortgage Backed
Securities Trust

     
  

(Series 2006-3) (Class B1)

     
157,864   

5.50%, 03/25/36

        3,200   
     

 

 
  

Total Non-Agency Collateralized
Mortgage Obligations
(Cost $283,969)

        14,002   
     

 

 

SOVEREIGN BONDS - 0.9%

     
  

Argentine Republic Government
International Bond

     
14,979   

2.50%, 12/31/38(g)

        5,557   
10,688   

8.28%, 12/31/33

        8,069   
  

Corp Andina de Fomento

     
92,000   

4.38%, 06/15/22

        100,235   
  

El Salvador Government
International Bond

     
40,000   

7.65%, 06/15/35(f)

        44,900   
  

Hungary Government International
Bond

     
13,000   

4.75%, 02/03/15

        13,079   
53,000   

6.25%, 01/29/20

        57,764   
36,000   

7.63%, 03/29/41

        40,860   
  

Korea Development Bank

     
172,000   

3.25%, 03/09/16

        181,349   
  

Korea National Oil Corp.

     
137,000   

2.88%, 11/09/15(f)

        143,028   
  

Lebanon Government International
Bond

     
6,600   

4.00%, 12/31/17

        6,518   

Principal Amount ($)

        Value ($)  
  

 

  

 

  

 

 

 

SOVEREIGN BONDS — (continued)

     
20,000   

5.15%, 11/12/18

        19,900   
20,000   

6.10%, 10/04/22

        20,300   
  

Mexico Government International
Bond

     
20,000   

5.75%, 10/12/10(e)

        24,050   
18,000   

6.05%, 01/11/40(h)

        24,075   
  

Mexico Government International
Bond, MTN

     
48,000   

4.75%, 03/08/44

        53,520   
  

Panama Government International
Bond

     
23,000   

6.70%, 01/26/36

        32,430   
  

Peruvian Government International
Bond

     
71,000   

6.55%, 03/14/37

        104,902   
  

Philippine Government
International Bond

     
100,000   

6.38%, 01/15/32

        135,625   
  

Poland Government International
Bond

     
15,000   

3.00%, 03/17/23

        14,778   
76,000   

5.00%, 03/23/22

        88,350   
13,000   

6.38%, 07/15/19

        16,104   
  

Republic of Ghana

     
100,000   

8.50%, 10/04/17(f)

        118,000   
  

Republic of Serbia

     
200,000   

7.25%, 09/28/21(f)

        213,000   
  

Romanian Government
International Bond

     
38,000   

6.75%, 02/07/22(f)

        42,892   
  

Russian Foreign Bond - Eurobond

     
14,729   

7.50%, 03/31/30(g)

        18,625   
  

Turkey Government International
Bond

     
19,000   

6.88%, 03/17/36

        24,178   
  

Ukraine Government International
Bond

     
200,000   

6.25%, 06/17/16(f)

        193,156   
  

Uruguay Government International
Bond

     
50,472   

6.88%, 09/28/25

        69,147   
  

Venezuela Government
International Bond

     
60,000   

10.75%, 09/19/13

        61,800   
  

Vietnam Government International
Bond

     
6,087   

1.50%, 03/12/16(a)

        5,569   
     

 

 
  

Total Sovereign Bonds
(Cost $1,729,967)

        1,881,760   
     

 

 

U.S. GOVERNMENT AGENCY - 3.1%

     
  

Federal Home Loan Mortgage
Corp.

     
4,700,000   

2.00%, 08/25/16

        4,962,566   
1,477,000   

2.38%, 01/13/22

        1,552,665   
     

 

 
  

Total U.S. Government Agency
(Cost $6,360,055)

        6,515,231   
     

 

 

U.S. TREASURIES - 58.5%

     
  

U.S. Treasury Bonds

     
2,216,900   

2.75%, 08/15/42(h)

        2,180,530   
10,404,500   

3.00%, 05/15/42(h)

        10,789,789   
 

 

See accompanying Notes to Financial Statements  |  89


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Fixed Income Fund

 

Principal Amount ($)

       

Value ($)

 
  

 

  

 

  

 

 

 

Bonds & Notes — (continued)

     

U.S. TREASURIES — (continued)

     
4,923,100   

3.13%, 02/15/42(h)(i)

        5,237,716   
  

U.S. Treasury Notes

     
35,656,300   

0.13%, 07/31/14(h)

        35,588,054   
498,000   

0.38%, 06/15/15

        499,128   
1,060,000   

0.50%, 10/15/14

        1,065,549   
23,868,500   

0.50%, 07/31/17(h)

        23,754,767   
555,500   

0.63%, 12/31/12

        556,238   
31,600   

0.63%, 08/31/17

        31,625   
17,476,300   

0.75%, 06/30/17(h)

        17,611,479   
3,490,000   

1.38%, 01/15/13

        3,503,088   
17,481,100   

1.63%, 08/15/22(h)

        17,464,720   
2,630,500   

1.75%, 05/15/22(h)

        2,667,903   
145,000   

2.13%, 08/15/21

        153,406   
1,050,000   

2.38%, 02/28/15

        1,102,992   
     

 

 
  

Total U.S. Treasuries
(Cost $121,718,583)

        122,206,984   
     

 

 
  

Total Bonds & Notes
(Cost $191,349,845)

        194,959,089   
     

 

 

            Shares            

           

Other Investments - 0.3%

     
609,871   

GEI Investment Fund(j)

        750,141   
     

 

 
  

Total Other Investments
(Cost $609,871)

        750,141   
     

 

 

Registered Investment
Company - 9.7%

     
20,274,450   

Federated Prime Obligations Fund

        20,274,450   
     

 

 
  

Total Registered Investment
Company
(Cost $20,274,450)

        20,274,450   
     

 

 

Total Investments - 103.4%

        215,983,680   
     

 

 

(Cost $212,234,166)

     

Liabilities in Excess of Other Assets - (3.4)%

        (7,179,645
     

 

 

Net Assets - 100.0%

        208,804,035   
     

 

 

 

 

(a) Variable or floating rate security. The interest rate shown reflects the rate in effect at September 30, 2012.
(b) Interest only security. These types of securities represent the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of prinicpal on the pool reduce the value of the “interest only” holding.
(c) Principal only security. These types of securities represent the right to receive the monthly principal payments on an underlying pool of mortgages. No payments of interest on the pool are passed through to the “principal only” holder.
(d) Zero coupon bond. Coupon amount represents effective yield to maturity.
(e) Settlement is on a delayed delivery or when-issued basis with final maturity to be announced (TBA) in the future.
(f) Securities exempt from registration under Rule 144A of the 1933 Act. These securities may only be resold, in transactions exempt from registration, to qualified institutional buyers. At September 30, 2012, these securities amounted to $9,936,453 or 4.8% of net assets.
(g) Step coupon bond. Security becomes interest bearing at a future date.
(h) Securities (or a portion of securities) on loan. As of September 30, 2012, the market value of securites loaned was $19,538,017. The loaned securities were secured with cash and securities collateral of $20,050,539. See Note 5.
(i) At September 30, 2012, all or portion of this security was pledged as collateral requirements for futures contracts and/or TBA’s.
(j) The security is a private fund.

 

ARM    Adjustable Rate Mortgage
MTN    Medium-Term Note
PLC    Public Limited Company
REMIC    Real Estate Mortgage Investment Conduit
STRIPS    Separate Trading of Registered Interest and Principal of
   Security
TBA    To be announced
 

 

90  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Fixed Income Fund

 

The Fund had the following futures contracts, brokered by Royal Bank of Scotland, open at September 30, 2012:

 

 Description  

Expiration

Date

 

Number

of

Contracts

 

Notional

Value

 

Unrealized

Appreciation

(Depreciation)

Long Futures:

               

2 Yr. U.S. Treasury Notes Futures

      December 2012         5         1,102,656       $ 517  

5 Yr. U.S. Treasury Notes Futures

      December 2012         120         14,955,938         60,439  
               

 

 

 
                  60,956  

 

Short Futures:

               

10 Yr. U.S. Treasury Notes Futures

      December 2012         54         7,208,156         (31,797 )

Long U.S. Treasury Bond Futures

      December 2012         18         2,688,750         (5,049 )

Ultra Long U.S. Treasury Bond Futures

      December 2012         25         4,130,469         11,244  
               

 

 

 
                  (25,602 )
               

 

 

 
                $ 35,354  
               

 

 

 
 

 

See accompanying Notes to Financial Statements   |  91


Table of Contents

INVESTMENT PORTFOLIO

 

  
As of September 30, 2012    Pyxis Money Market Fund II

 

Principal Amount ($)

        Amortized
Cost ($)
 
  

 

  

 

  

 

 

 

Short-Term Investments - 95.5%

  

CERTIFICATES OF DEPOSIT - 15.7%

     
  

Australia & New Zealand Banking
Group Ltd.

   

1,600,000   

0.23%, 11/08/12

        1,600,017   
  

Bank of Nova Scotia

  

1,550,000   

0.31%, 06/13/13(a)

        1,550,000   
  

National Australia Bank/New York

  

1,500,000   

0.27%, 10/29/12(a)

        1,499,999   
  

Royal Bank of Canada

  

1,000,000   

0.45%, 04/10/13(a)

        999,999   
  

Standard Chartered Bank

  

1,450,000   

0.48%, 01/10/13

        1,449,999   
  

Svenska Handelsbanken AB

  

1,800,000   

0.30%, 10/11/12

        1,800,000   
  

Toronto Dominion Bank

  

1,250,000   

0.17%, 10/18/12

        1,249,999   
  

Westpac Banking Corp., New York

  

1,700,000   

0.44%, 02/11/13(a)

        1,700,000   
     

 

 
  

Total Certificates of Deposit
(Cost $11,850,013)

        11,850,013   
     

 

 

COMMERCIAL PAPER - 19.5%

     
  

Chevron Corp.

  

1,050,000   

0.11%, 10/26/12(b)

        1,049,920   
650,000   

0.12%, 11/19/12(b)

        649,894   
  

Commonwealth Bank of Australia

  

1,750,000   

0.19%, 11/21/12(b)

        1,749,517   
  

DNB Bank ASA

  

600,000   

0.23%, 12/17/12(b)

        599,705   
400,000   

0.26%, 12/17/12(b)

        399,778   
  

Glaxosmithkline Finance PLC

  

500,000   

0.13%, 10/11/12(b)

        499,982   
  

HSBC Bank PLC

  

1,950,000   

0.26%, 03/25/13(a)(b)

        1,950,000   
  

JP Morgan Chase & Co.

  

550,000   

0.26%, 10/15/12(a)(b)

        550,013   
850,000   

0.28%, 11/07/12(b)

        849,755   
  

KFW

  

1,050,000   

0.20%, 10/12/12(b)

        1,049,936   
  

Nordea North America, Inc.

  

1,350,000   

0.22%, 11/27/12(b)

        1,349,530   
  

Novartis Finance Corp.

  

800,000   

0.11%, 10/03/12(b)

        799,996   
  

Procter & Gamble Co.

  

950,000   

0.12%, 10/15/12(b)

        949,956   
950,000   

0.15%, 12/12/12(b)

        949,715   
  

Skandinaviska Enskilda Banken AB

  

1,300,000   

0.22%, 10/03/12(b)

        1,299,984   
     

 

 
  

Total Commercial Paper
(Cost $14,697,681)

        14,697,681   
     

 

 

CORPORATE NOTES - 2.7%

     
  

Inter-American Development Bank

  

1,550,000   

0.13%, 11/06/12(b)

        1,549,798   
500,000   

0.15%, 12/10/12(b)

        499,859   
     

 

 
  

Total Corporate Notes
(Cost $2,049,657)

        2,049,657   
     

 

 

U.S. GOVERNMENT AGENCY - 29.8%

     
  

Fannie Mae Discount Notes

  

1,700,000   

0.11%, 11/28/12(b)

        1,699,699   
1,300,000   

0.12%, 10/31/12(b)

        1,299,875   
1,050,000   

0.13%, 11/14/12(b)

        1,049,840   

Principal Amount ($)

        Amortized
Cost ($)
 
  

 

  

 

  

 

 

 

U.S. GOVERNMENT AGENCY — (continued)

     
1,300,000   

0.13%, 12/19/12(b)

        1,299,643   
850,000   

0.14%, 10/24/12(b)

        849,927   
  

Federal Home Loan Bank Discount
Notes

     
600,000   

0.07%, 10/19/12(b)

        599,979   
550,000   

0.12%, 10/10/12(b)

        549,983   
950,000   

0.12%, 10/19/12(b)

        949,943   
1,950,000   

0.12%, 10/24/12(b)

        1,949,850   
1,100,000   

0.13%, 10/10/12(b)

        1,099,965   
1,200,000   

0.13%, 11/16/12(b)

        1,199,801   
1,050,000   

0.13%, 12/05/12(b)

        1,049,754   
300,000   

0.13%, 12/05/12(b)

        299,930   
1,250,000   

0.14%, 11/09/12(b)

        1,249,817   
  

Federal Home Loan Mortgage
Corp.

     
1,400,000   

0.63%, 10/30/12

        1,400,525   
  

Freddie Mac Discount Notes

  

1,050,000   

0.12%, 10/23/12(b)

        1,049,923   
1,900,000   

0.12%, 11/19/12(b)

        1,899,690   
500,000   

0.13%, 10/25/12(b)

        499,957   
600,000   

0.14%, 12/10/12(b)

        599,839   
750,000   

0.15%, 02/04/13(b)

        749,609   
1,050,000   

0.16%, 02/19/13(b)

        1,049,341   
     

 

 
  

Total U.S. Government Agency
(Cost $22,396,890)

        22,396,890   
     

 

 

U.S. TREASURIES - 19.2%

     
  

U.S. Treasury Bills

  

2,700,000   

0.06%, 10/18/12(b)

        2,699,924   
  

U.S. Treasury Notes

  

2,100,000   

0.38%, 10/31/12

        2,100,450   
3,550,000   

0.50%, 11/30/12

        3,551,978   
2,100,000   

1.38%, 10/15/12

        2,101,025   
2,100,000   

1.38%, 01/15/13

        2,107,353   
1,900,000   

1.38%, 03/15/13

        1,910,699   
     

 

 
  

Total U.S. Treasuries
(Cost $14,471,429)

        14,471,429   
     

 

 

REPURCHASE AGREEMENT - 8.6%

     
6,500,000   

Barclays Capital, Inc. 0.20%,
10/01/12, (Dated 09/28/12,
repurchase price of $6,500,108
collateralized by a U.S.
Government Obligations, 2.13%,
due 02/29/16, value $6,630,034)

        6,500,000   
     

 

 
  

Total Repurchase Agreement
(Cost $6,500,000)

        6,500,000   
     

 

 
  

Total Short-Term Investments
(Cost $71,965,670)

        71,965,670   
     

 

 
 

 

92  |  See accompanying Notes to Financial Statements


Table of Contents

INVESTMENT PORTFOLIO (continued)

 

  
As of September 30, 2012    Pyxis Money Market Fund II

 

             Shares            

        Value ($)  
  

 

  

 

  

 

 

 

Registered Investment Company - 4.6%

  

3,444,669   

Federated Prime Obligations Fund

        3,444,669   
     

 

 
  

Total Registered Investment
Company
(Cost $3,444,669)

        3,444,669   
     

 

 

Total Investments - 100.1%

        75,410,339   
     

 

 

(Cost $75,410,339)

     

Liabilities in Excess of Other Assets - (0.1)%

        (107,651
     

 

 

Net Assets - 100.0%

        75,302,688   
     

 

 

 

(a) Variable or floating rate security. The interest rate shown reflects the rate in effect at September 30, 2012.
(b) Coupon amount represents effective yield at time of purchase.
 

 

See accompanying Notes to Financial Statements  |  93


Table of Contents

STATEMENTS OF ASSETS AND LIABILITIES

 

  

As of September 30, 2012

 

  
     Pyxis
Alpha Trend
Strategies
Fund
($)
    Pyxis
Alternative
Income
Fund
($)
    Pyxis
Energy and
Materials
Fund
($)
 
  

 

 

   

 

 

   

 

 

 

Assets

      

Investments, at value*(a)

     3,828,644        12,899,687        223,385   

Cash held as collateral for securities loaned (Note 5)

            4,125,000          

Receivable for:

      

Investments sold

     747,613        7,416,632        3,971,855   

Dividend and interest

     11,351        1,577        4,711   

Due from broker

     227,806               208,369   

Investment adviser and administrator fees (Note 7)

     8,168               25,161   

Sub-administrator, custodian and transfer agent fees

                     

Fund shares sold

            113,011          

Prepaid expenses

     5,227                 

Offering cost (Note 2)

     13,386        16,002        15,473   
  

 

 

   

 

 

   

 

 

 

Total assets

     4,842,195        24,571,909        4,448,954   
  

 

 

   

 

 

   

 

 

 

Liabilities

      

Securities sold short, at value (proceeds $2,750,203)

            2,771,100          

Due to broker

            213,440          

Payable for:

      

Upon receipt of securities loaned (Note 5)

            4,125,000          

Distributions

            14,258          

Investments purchased

     371,550        3,043,204        215,638   

Fund shares redeemed

     30,009        30,066          

Variation margin

                     

Investment adviser and administrator fees (Note 7)

                     

Trustee fees

     250        1,034        161   

Distribution and service fees (Note 7)

     318        1,369        11   

Transfer agent fees

     3,142        2,994        2,639   

Custody fees

     1,152        1,246        1,418   

Accrued expenses and other liabilities

     2,871        21,182        2,736   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     409,292        10,224,893        222,603   
  

 

 

   

 

 

   

 

 

 

Net Assets

     4,432,903        14,347,016        4,226,351   
  

 

 

   

 

 

   

 

 

 

Net Assets Consist of:

      

Par value (Note 1)

     471        1,487        385   

Paid-in capital

     4,483,408        14,743,309        3,884,444   

Accumulated net investment income (loss)

     (18,601     33,574        13,150   

Accumulated net realized gain (loss) from investments, short positions, future contracts and foreign currency transactions

     (82,972     (569,928     328,372   

Net unrealized appreciation (depreciation) on investments, short positions, future contracts and translation of assets and liabilities denominated in foreign currency

     50,597        138,574          
  

 

 

   

 

 

   

 

 

 

Net Assets

     4,432,903        14,347,016        4,226,351   
  

 

 

   

 

 

   

 

 

 

*    Investments and Repurchase Agreement, at cost

     3,778,047        12,740,216        223,385   

(a)  Includes market value of securities on loan of:

            4,022,000          

 

94  |  See accompanying Notes to Financial Statements.


Table of Contents

STATEMENTS OF ASSETS AND LIABILITIES (continued)

 

  
   Pyxis Funds II

 

Pyxis

Trend

Following

Fund

($)

 

Pyxis

Core America

Equity

Fund

($)

 

Pyxis

Dividend

Equity

Fund

($)

 

Pyxis

Premier

Growth Equity

Fund

($)

   
 

 

 

 

 

 

 
                           
    2,399,646            201,171,061            10,918,742            162,899,655           
    677,825            729,648            500,515                      
                           
               512,212                       785,743           
    2,709            192,918            26,215            89,540           
                                               
    11,670                       11,582                      
               25,304                       19,132           
               729            157,000            158,885           
    15,242            15,500            16,644            5,884           
                          1,491                      
 

 

 

       

 

 

       

 

 

       

 

 

         
     3,107,092             202,647,372             11,632,189             163,958,839           
 

 

 

       

 

 

       

 

 

       

 

 

         
                           
                                               
                                               
                           
    677,825            729,648            500,515                      
               190            8,663                      
    219,338            238,967                       682,142           
               12,349            6,227            75,177           
               1,688                       16,875           
               70,494                       80,011           
    446            3,816            171            3,103           
    430            27,459            455            22,222           
    4,696            48,714            3,102            43,393           
    696            15,714            2,923            5,755           
    10,319            89,460            4,032            64,388           
 

 

 

       

 

 

       

 

 

       

 

 

         
    913,750            1,238,499            526,088            993,066           
 

 

 

       

 

 

       

 

 

       

 

 

         
    2,193,342            201,408,873            11,106,101            162,965,773           
 

 

 

       

 

 

       

 

 

       

 

 

         
                           
    235            19,674            973            6,281           
    2,596,979            183,179,859            9,982,031            121,586,490           
    (66,092         224,098            13,432            193,751           
    (403,182         (7,411,793         (3,875         (3,565,206        
    65,402            25,397,035            1,113,540            44,744,457           
 

 

 

       

 

 

       

 

 

       

 

 

         
    2,193,342            201,408,873            11,106,101            162,965,773           
 

 

 

       

 

 

       

 

 

       

 

 

         
    2,334,244            175,767,811            9,805,202            118,093,513           
    653,650            712,437            491,756                      

 

See accompanying Notes to Financial Statements.  |  95


Table of Contents

STATEMENTS OF ASSETS AND LIABILITIES (continued)

 

  
As of September 30, 2012   

 

     Pyxis
Alpha Trend
Strategies
Fund
($)
     Pyxis
Alternative
Income
Fund
($)
     Pyxis
Energy and
Materials
Fund
($)
 
  

 

 

    

 

 

    

 

 

 

Class A:

        

Net assets

     1,096,531         5,569,750         11,030   

Shares outstanding ($0.001 par value; unlimited shares authorized)

     116,852         577,655         1,005   
  

 

 

    

 

 

    

 

 

 

Net asset value per share(a)(b)

     9.38         9.64         10.98   
  

 

 

    

 

 

    

 

 

 

Maximum offering price per share(c)

     9.95         10.23         11.65   
  

 

 

    

 

 

    

 

 

 

Class B:

        

Net assets

                       

Shares outstanding ($0.001 par value; unlimited shares authorized)

                       
  

 

 

    

 

 

    

 

 

 

Net asset value and offering price per share(a)

                       
  

 

 

    

 

 

    

 

 

 

Class C:

        

Net assets

     51,141         72,934         10,970   

Shares outstanding ($0.001 par value; unlimited shares authorized)

     5,462         7,559         1,001   
  

 

 

    

 

 

    

 

 

 

Net asset value and offering price per share(a)

     9.36         9.65         10.96   
  

 

 

    

 

 

    

 

 

 

Class R:

        

Net assets

     333,112         1,142,335         11,016   

Shares outstanding ($0.001 par value; unlimited shares authorized)

     35,411         118,400         1,003   
  

 

 

    

 

 

    

 

 

 

Net asset value, offering and redemption price per share

     9.41         9.65         10.98   
  

 

 

    

 

 

    

 

 

 

Class Y:

        

Net assets

     2,952,119         7,561,997         4,193,335   

Shares outstanding ($0.001 par value; unlimited shares authorized)

     313,419         783,620         381,606   
  

 

 

    

 

 

    

 

 

 

Net asset value, offering and redemption price per share

     9.42         9.65         10.99   
  

 

 

    

 

 

    

 

 

 

 

 

(a) Redemption price per share is equal to net asset value per share less any applicable contingent deferred sales charge (“CDSC”).
(b) Purchases of $1,000,000 or more are subject to a 1.00% CDSC if redeemed within one year of purchase.
(c) The sales charge is 5.75% for all Funds except for the Tax-Exempt Fund and Fixed Income Fund, which is 4.25%. On sales of $1,000,000 or more, there is no sales charge and therefore the offering will be lower.

 

96  |  See accompanying Notes to Financial Statements.


Table of Contents

STATEMENTS OF ASSETS AND LIABILITIES (continued)

 

  
   Pyxis Funds II

 

Pyxis

Trend

Following

Fund

($)

 

Pyxis

Core America

Equity

Fund

($)

 

Pyxis

Dividend

Equity

Fund

($)

 

Pyxis

Premier

Growth Equity

Fund

($)

 

 

 

 

 

 

                     
       2,144,064       194,778,956       424,355       127,027,681  
  229,807       19,030,613       35,473       4,861,437  
 

 

     

 

     

 

     

 

 
  9.33       10.24       11.96       26.13  
 

 

     

 

     

 

     

 

 
  9.90       10.86       12.69       27.72  
 

 

     

 

     

 

     

 

 
                     
        60,872             110,176  
        6,277             4,904  
 

 

     

 

     

 

     

 

 
        9.70             22.46  
 

 

     

 

     

 

     

 

 
                     
  49,278       3,442,736       771,145       10,511,504  
  5,299       362,046       67,666       467,240  
 

 

     

 

     

 

     

 

 
  9.30       9.51       11.40       22.50  
 

 

     

 

     

 

     

 

 
                     
        2,114             233,460  
        204             9,036  
 

 

     

 

     

 

     

 

 
        10.33             25.84  
 

 

     

 

     

 

     

 

 
                     
        3,124,195       9,910,601       25,082,952  
        274,576       869,585       937,954  
 

 

     

 

     

 

     

 

 
        11.38       11.40       26.74  
 

 

     

 

     

 

     

 

 

 

See accompanying Notes to Financial Statements.  |  97


Table of Contents

STATEMENTS OF ASSETS AND LIABILITIES (continued)

 

  
As of September 30, 2012   

 

     Pyxis
Small-Cap
Equity
Fund

($)
    Pyxis
Global
Equity
Fund

($)
    Pyxis
International
Equity

Fund
($)
 
  

 

 

   

 

 

   

 

 

 

Assets

      

Investments, at value*(a)

     37,380,031        23,430,364        12,515,134   

Repurchase Agreement, at value*

                     

Restricted Cash (Note 2)

                   25,548   

Foreign currency**

            20,300        33,116   

Cash held as collateral for securities loaned (Note 5)

     4,647,969        918,956          

Receivable for:

      

Investments sold

     76,591               28,119   

Dividend and interest

     46,048        81,326        88,598   

Sub-administrator, custodian and transfer agent fees

            12,245        2,325   

Fund shares sold

     3,263        212        26   

Prepaid expenses

     15,426        4,418          

Variation margin

                     
  

 

 

   

 

 

   

 

 

 

Total assets

     42,169,328        24,467,821        12,692,866   
  

 

 

   

 

 

   

 

 

 

Liabilities

      

Due to Custodian

     362                 

Payable for:

      

Upon receipt of securities loaned (Note 5)

     4,647,969        918,956          

Distributions

                     

Investments purchased

     53,927               13,659   

Fund shares redeemed

     130,756        666        10,247   

Variation margin

                   4,169   

Investment adviser and administrator fees (Note 7)

     29,396        14,484        8,324   

Trustee fees

     770        565        357   

Distribution and service fees (Note 7)

     6,116        3,139        1,881   

Transfer agent fees

     12,678        12,850        9,724   

Custody fees

     5,712        18,674        38,351   

Accrued expenses and other liabilities

     21,067        17,721        9,540   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     4,908,753        987,055        96,252   
  

 

 

   

 

 

   

 

 

 

Net Assets

     37,260,575        23,480,766        12,596,614   
  

 

 

   

 

 

   

 

 

 

Net Assets Consist of:

      

Par value (Note 1)

     2,934        1,159        1,055   

Paid-in capital

     31,805,236        27,652,756        26,423,001   

Accumulated net investment income (loss)

     (331,201     (18,797     (3,876

Accumulated net realized gain (loss) from investments, future contracts and foreign currency transactions

     2,170,468        (6,491,144     (14,728,939

Net unrealized appreciation (depreciation) on investments, future contracts and translation of assets and liabilities denominated in foreign currency

     3,613,138        2,336,792        905,373   
  

 

 

   

 

 

   

 

 

 

Net Assets

     37,260,575        23,480,766        12,596,614   
  

 

 

   

 

 

   

 

 

 

*   Investments and Repurchase Agreement, at cost

     33,766,893        21,094,271        11,602,167   

**  Foreign currency, at cost

            20,116        33,087   

(a) Includes market value of securities on loan of:

     4,493,548        870,552          

 

98  |  See accompanying Notes to Financial Statements.


Table of Contents

STATEMENTS OF ASSETS AND LIABILITIES (continued)

 

  
  

Pyxis Funds II

 

Pyxis

Total

Return

Fund

($)

  

Pyxis

Tax-Exempt

Fund

($)

  

Pyxis

Fixed

Income

Fund

($)

  

Pyxis

Money

Market

Fund II

($)

 

  

 

 

   

 

  

 

  

 

 

   

 

  

 

  

 

 

   

 

  

 

  

 

 

   

 

                            
     84,108,142              35,864,017              215,983,680              68,910,339     
                                            6,500,000     
     19,028                                            
     37,859                                            
     5,674,635                           20,050,539                  
                            
     2,109,495                           6,667,580                  
     264,786              457,602              692,936              38,637     
                               7,938              49,843     
     566              2,157              37,328              13,078     
     1,976              2,232              3,550              376     
                               12,625                  
  

 

 

         

 

 

         

 

 

         

 

 

   
     92,216,487              36,326,008              243,456,176              75,512,273     
  

 

 

         

 

 

         

 

 

         

 

 

   
                            
                                                
                            
     5,674,635                           20,050,539                  
     61              26,622              57,525                  
     3,668,787              588,510              14,032,870                  
     70,208              10,556              241,059              131,750     
     8,097                                            
     75,809              8,578              62,003              15,551     
     1,740              445              4,830              1,548     
     13,579              5,269              28,920                  
     22,919              6,019              41,205              14,844     
     83,774              1,817              22,250              7,288     
     59,519              22,128              110,940              38,604     
  

 

 

         

 

 

         

 

 

         

 

 

   
     9,679,128              669,944              34,652,141              209,585     
  

 

 

         

 

 

         

 

 

         

 

 

   
     82,537,359              35,656,064              208,804,035              75,302,688     
  

 

 

         

 

 

         

 

 

         

 

 

   
                            
     3,986              2,890              16,006              75,351     
     84,955,329              32,681,831              209,048,207              75,249,171     
     703,368              50,585              (850,164               
     (8,408,271           (557,094           (3,194,883           (21,834  
     5,282,947              3,477,852              3,784,869                  
  

 

 

         

 

 

         

 

 

         

 

 

   
     82,537,359              35,656,064              208,804,035              75,302,688     
  

 

 

         

 

 

         

 

 

         

 

 

   
     78,716,544              32,386,165              212,234,166              75,410,339     
     37,671                                            
     5,515,593                           19,538,017                  

 

See accompanying Notes to Financial Statements.  |  99


Table of Contents

STATEMENTS OF ASSETS AND LIABILITIES (continued)

 

  
As of September 30, 2012   

 

 

    Pyxis
Small-Cap
Equity
Fund

($)
  Pyxis
Global
Equity
Fund

($)
  Pyxis
International
Equity

Fund
($)
   

 

 

     

 

 

     

 

 

 

Class A:

           

Net assets

      33,698,331         23,348,848         11,321,574  

Shares outstanding ($0.001 par value; unlimited shares authorized)

      2,615,951         1,151,705         943,912  
   

 

 

     

 

 

     

 

 

 

Net asset value per share(a)(b)

      12.88         20.27         11.99  
   

 

 

     

 

 

     

 

 

 

Maximum offering price per share(c)

      13.67         21.51         12.72  
   

 

 

     

 

 

     

 

 

 

Class B:

           

Net assets

      154,443         4,170         14,602  

Shares outstanding ($0.001 par value; unlimited shares authorized)

      14,083         232         1,332  
   

 

 

     

 

 

     

 

 

 

Net asset value and offering price per share(a)

      10.97         18.01         10.97  
   

 

 

     

 

 

     

 

 

 

Class C:

           

Net assets

      2,946,542         126,435         666,200  

Shares outstanding ($0.001 par value; unlimited shares authorized)

      270,187         6,942         61,058  
   

 

 

     

 

 

     

 

 

 

Net asset value and offering price per share(a)

      10.91         18.21         10.91  
   

 

 

     

 

 

     

 

 

 

Class R:

           

Net assets

      1,088         928         886  

Shares outstanding ($0.001 par value; unlimited shares authorized)

      85         46         73  
   

 

 

     

 

 

     

 

 

 

Net asset value, offering and redemption price per share

      12.79         20.29         12.06  
   

 

 

     

 

 

     

 

 

 

Class Y:

           

Net assets

      460,171         385         593,352  

Shares outstanding ($0.001 par value; unlimited shares authorized)

      34,134         19         48,781  
   

 

 

     

 

 

     

 

 

 

Net asset value, offering and redemption price per share

      13.48         20.41         12.16  
   

 

 

     

 

 

     

 

 

 

Retail Class:

           

Net assets

                       

Shares outstanding ($0.001 par value; unlimited shares authorized)

                       
   

 

 

     

 

 

     

 

 

 

Net asset value, offering and redemption price per share

                       
   

 

 

     

 

 

     

 

 

 

Institutional Class:

           

Net assets

                       

Shares outstanding ($0.001 par value; unlimited shares authorized)

                       
   

 

 

     

 

 

     

 

 

 

Net asset value, offering and redemption price per share

                       
   

 

 

     

 

 

     

 

 

 

 

 

(a) Redemption price per share is equal to net asset value per share less any applicable contingent deferred sales charge (“CDSC”).
(b) Purchases of $1,000,000 or more are subject to a 1.00% CDSC if redeemed within one year of purchase.
(c) The sales charge is 5.75% for all Funds except for the Tax-Exempt Fund and Fixed Income Fund, which is 4.25%. On sales of $1,000,000 or more, there is no sales charge and therefore the offering will be lower.

 

100  |  See accompanying Notes to Financial Statements.


Table of Contents

STATEMENTS OF ASSETS AND LIABILITIES (continued)

 

  
   Pyxis Funds II

 

     Pyxis
Total
                     Return                    
Fund
($)
   Pyxis
                     Tax-Exempt                    
Fund
($)
   Pyxis
Fixed
                     Income                    
Fund
($)
   Pyxis
Money
                     Market                    
Fund II
($)
    

 

 

      

 

 

      

 

 

      

 

 

 
                   
       75,215,741          33,746,870          202,060,152           
       3,607,082          2,735,819          15,489,847           
    

 

 

      

 

 

      

 

 

      

 

 

 
       20.85          12.34          13.04           
    

 

 

      

 

 

      

 

 

      

 

 

 
       22.12          12.89          13.62           
    

 

 

      

 

 

      

 

 

      

 

 

 
                   
       138,633          1,712          119,728           
       6,893          139          9,180           
    

 

 

      

 

 

      

 

 

      

 

 

 
       20.11          12.33          13.04           
    

 

 

      

 

 

      

 

 

      

 

 

 
                   
       6,965,116          1,727,612          5,051,052           
       361,774          140,144          386,697           
    

 

 

      

 

 

      

 

 

      

 

 

 
       19.25          12.33          13.06           
    

 

 

      

 

 

      

 

 

      

 

 

 
                   
       1,029                   2,131           
       49                   163           
    

 

 

      

 

 

      

 

 

      

 

 

 
       20.94                   13.05       
    

 

 

      

 

 

      

 

 

      

 

 

 
                   
       216,840          179,870          1,570,972           
       10,280          13,484          120,593           
    

 

 

      

 

 

      

 

 

      

 

 

 
       21.09          13.34          13.03           
    

 

 

      

 

 

      

 

 

      

 

 

 
                   
                                  59,779,342  
                                  59,830,138  
    

 

 

      

 

 

      

 

 

      

 

 

 
                                  1.00  
    

 

 

      

 

 

      

 

 

      

 

 

 
                   
                                  15,523,346  
                                  15,520,834  
    

 

 

      

 

 

      

 

 

      

 

 

 
                                  1.00  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

See accompanying Notes to Financial Statements.  |  101


Table of Contents

STATEMENTS OF OPERATIONS

 

  

For the year ended September 30, 2012 (unless otherwise indicated)

 

 

    Pyxis
Alpha Trend    
Strategies
Fund
($)(a)
  Pyxis
     Alternative    
Income
Fund
($)(b)
  Pyxis
     Energy and    
Materials
Fund
($)(c)
   

 

 

     

 

 

     

 

 

 

Investment Income

           

Income:

           

Dividends

      31,397         570,493         65,471  

Less: Foreign taxes withheld

                      (1,366 )

Securities lending income

      1,196         2,800          
   

 

 

     

 

 

     

 

 

 

Total Income

      32,593         573,293         64,105  
   

 

 

     

 

 

     

 

 

 

Expenses:

           

Investment adviser and administrator fees (Note 7)

      73,838         157,109         32,816  

Distribution and service fees: (Note 7)

           

Class A

      2,516         6,729         30  

Class B

                       

Class C

      209         267         86  

Class R

      1,299         4,657         43  

Transfer agent fees

      17,100         16,450         14,850  

Trustees fees (Note 7)

      428         1,368         284  

Custody fees

      2,463         3,019         5,000  

Accounting services fees

      22,258         18,900         20,432  

Audit fees

      1,845         6,668         1,100  

Legal fees

      11,829         3,138         6,494  

Registration fees

      12,667         23,170         11,667  

Reports to shareholders

      1,911         7,981         4,139  

Offering costs (Note 2)

      87,347         40,703         78,653  

Other

      3,369         3,150         3,244  
   

 

 

     

 

 

     

 

 

 

Total expenses before waiver and reimbursement
(Note 7)

      239,079         293,309         178,838  

Less: Expenses waived or borne by the adviser and administrator

      (153,927 )       (141,398 )       (121,138 )

Less: Expenses waived by the sub-administrator, custodian and transfer agent

      (7,384 )       (15,711 )       (5,469 )

Less: Distribution and service fees waiver-Class A

              (5 )        

Less: Distribution and service fees waiver-Class C

              (47 )        
   

 

 

     

 

 

     

 

 

 

Net operating expenses

      77,768         136,148         52,231  

Dividends and fees on short sales (Note 2)

      3,067         5,407         595  
   

 

 

     

 

 

     

 

 

 

Net expenses

      80,835         141,555         52,826  
   

 

 

     

 

 

     

 

 

 

Net investment income (loss)

      (48,242 )       431,738         11,279  
   

 

 

     

 

 

     

 

 

 

Net Realized and Unrealized Gain (Loss) on Investments

           

Realized gain (loss) on:

           

Investments

      5,102         (304,428 )       335,620  

Short positions

      (85,099 )       (265,500 )       (7,248 )

Future contracts

                       

Increase (decrease) in unrealized appreciation (depreciation) on:

           

Investments

      50,597         159,471          

Short positions

              (20,897 )        

Future contracts

                       
   

 

 

     

 

 

     

 

 

 

Net realized and unrealized gain (loss) on investments

      (29,400 )       (431,354 )       328,372  
   

 

 

     

 

 

     

 

 

 

Net increase (decrease) in net assets resulting from operations

      (77,642 )       384         339,651  
   

 

 

     

 

 

     

 

 

 

 

 

(a) Commenced operations on November 1, 2011.

(b) Commenced operations on January 13, 2012.

(c) Commenced operations on December 1, 2011.

(d) Commenced operations on November 14, 2011.

* Change in unrealized does not include unrealized appreciation in connection with the Reorganization (Note 10).

 

102  |  See accompanying Notes to Financial Statements.


Table of Contents

STATEMENTS OF OPERATIONS (continued)

 

  
   Pyxis Funds II

 

    Pyxis
                     Trend                    
Following
Fund
($)
  Pyxis
Core America
                         Equity                        
Fund
($)
  Pyxis
                     Dividend                    
Equity
Fund
($)(d)
  Pyxis
                     Premier                    
Growth Equity
Fund
($)
   

 

 

     

 

 

     

 

 

     

 

 

 
      41,411         729,658         254,749         2,140,667  
              (3,958 )       (2,199 )        
      7,019         769         1,020         1,044  
   

 

 

     

 

 

     

 

 

     

 

 

 
      48,430         726,469         253,570         2,141,711  
   

 

 

     

 

 

     

 

 

     

 

 

 
               
      120,444         182,754         90,762         943,150  
               
      20,986         78,982         883         302,221  
              816                 1,794  
      261         14,706         4,363         106,410  
              5                 1,054  
      24,317         65,160         16,500         260,475  
      358         2,359         530         10,808  
      1,758         12,308         4,019         19,872  
      26,745         37,609         23,923         80,189  
      3,310         12,411         1,803         65,145  
      35,274         8,466         9,936         91,858  
      69,019         40,000         13,363         49,000  
      3,355         14,713         4,643         99,930  
                      108,204          
      6,496         11,019         4,535         41,733  
   

 

 

     

 

 

     

 

 

     

 

 

 
      312,323         481,308         283,464         2,073,639  
      (169,482 )               (119,384 )        
      (7,173 )               (15,127 )       (131,895 )
                               
                               
   

 

 

     

 

 

     

 

 

     

 

 

 
      135,668         481,308         148,953         1,941,744  
                               
   

 

 

     

 

 

     

 

 

     

 

 

 
      135,668         481,308         148,953         1,941,744  
   

 

 

     

 

 

     

 

 

     

 

 

 
      (87,238 )       245,161         104,617         199,967  
   

 

 

     

 

 

     

 

 

     

 

 

 
               
      (383,893 )       2,152,257         2,789         9,115,200  
                               
              57,781                 667,089  
               
      (360,416 )       5,381,069 *       1,113,540         36,300,145  
                               
              1,887                 27,376  
   

 

 

     

 

 

     

 

 

     

 

 

 
      (744,309 )       7,592,994         1,116,329         46,109,810  
   

 

 

     

 

 

     

 

 

     

 

 

 
      (831,547 )       7,838,155         1,220,946         46,309,777  
   

 

 

     

 

 

     

 

 

     

 

 

 

 

See accompanying Notes to Financial Statements.  |  103


Table of Contents

STATEMENTS OF OPERATIONS

 

  
For the year ended September 30, 2012 (unless otherwise indicated)

 

    Pyxis
  Small-Cap  

Equity
Fund
($)
  Pyxis
    Global    
Equity
Fund

($)
  Pyxis
International
Equity

Fund
($)
   

 

 

     

 

 

     

 

 

 

Investment Income

           

Income:

           

Dividends

      417,137         478,527         376,616  

Interest

              198          

Less: Foreign taxes withheld

      (111 )       (25,031 )       (27,027 )

Securities lending income

      16,272         2,258         1,902  
   

 

 

     

 

 

     

 

 

 

Total Income

      433,298         455,952         351,491  
   

 

 

     

 

 

     

 

 

 

Expenses:

           

Investment adviser and administrator fees (Note 7)

      360,246         181,652         105,675  

Distribution and service fees: (Note 7)

           

Class A

      85,952         60,224         29,481  

Class B

      2,037         96         403  

Class C

      29,547         1,196         8,285  

Class R

      5         4         4  

Transfer agent fees

      75,504         73,218         43,756  

Trustees fees (Note 7)

      2,654         1,768         1,012  

Custody fees

      38,826         67,339         146,121  

Accounting services fees

      66,710         52,235         54,349  

Audit fees

      14,804         21,320         15,655  

Legal fees

      19,596         12,448         5,017  

Registration fees

      45,000         44,000         47,510  

Reports to shareholders

      23,146         12,525         4,379  

Other

      18,654         15,289         15,222  
   

 

 

     

 

 

     

 

 

 

Total expenses before waiver and reimbursement (Note 7)

      782,681         543,314         476,869  

Less: Expenses waived or borne by the adviser and administrator

              (88,209 )       (147,054 )

Less: Expenses waived by the sub-administrator, custodian and transfer agent

                       
   

 

 

     

 

 

     

 

 

 

Net expenses

      782,681         455,105         329,815  
   

 

 

     

 

 

     

 

 

 

Net investment income (loss)

      (349,383 )       847         21,676  
   

 

 

     

 

 

     

 

 

 

Net Realized and Unrealized Gain (Loss) on Investments

           

Realized gain (loss) on:

           

Investments

      3,705,376         429,788         (399,850 )

Future contracts

              121,903         (7,211 )

Foreign currency related transactions

              (24,053 )       (17,404 )

Increase (decrease) in unrealized appreciation (depreciation) on:

           

Investments

      5,754,801         3,863,260         2,411,183  

Future contracts

              (3,482 )       (12,436 )

Foreign currency related transactions

              (411 )       (957 )
   

 

 

     

 

 

     

 

 

 

Net realized and unrealized gain (loss) on investments

      9,460,177         4,387,005         1,973,325  
   

 

 

     

 

 

     

 

 

 

Net increase (decrease) in net assets resulting from operations

      9,110,794         4,387,852         1,995,001  
   

 

 

     

 

 

     

 

 

 

 

 

* Change in unrealized does not include unrealized appreciation in connection with the Reorganization (Note 10).

 

104  |  See accompanying Notes to Financial Statements.


Table of Contents

STATEMENTS OF OPERATIONS (continued)

 

  
   Pyxis Funds II

 

     Pyxis
Total
                     Return                    
Fund
($)
                          Pyxis                         
Tax-Exempt
Fund
($)
  Pyxis
Fixed
                     Income                    
Fund
($)
  Pyxis
Money
                     Market                    
Fund II
($)
    

 

 

     

 

 

     

 

 

     

 

 

 
                
       1,276,252         1,363         28,123         5,690  
       996,710         1,392,327         2,509,196         135,961  
       (29,008 )                        
       5,737                 5,773          
    

 

 

     

 

 

     

 

 

     

 

 

 
       2,249,691         1,393,690         2,543,092         141,651  
    

 

 

     

 

 

     

 

 

     

 

 

 
                
       438,535         129,747         328,300         192,254  
                
       199,455         87,899         228,767          
       2,222         35         746          
       74,849         17,327         12,416          
       5                 5          
       124,605         42,065         68,780         92,382  
       6,087         2,283         6,397         5,294  
       356,026         5,962         59,170         42,090  
       215,760         46,702         165,647         57,332  
       47,171         13,986         35,528         32,912  
       46,460         24,948         47,857         16,876  
       48,000         38,000         46,000         19,000  
       45,418         21,037         42,271         29,851  
       51,978         21,875         34,558         34,091  
    

 

 

     

 

 

     

 

 

     

 

 

 
                
       1,656,571         451,866         1,076,442         522,082  
       (199,017 )       (15,008 )       (12,722 )        
                               (380,431 )
    

 

 

     

 

 

     

 

 

     

 

 

 
       1,457,554         436,858         1,063,720         141,651  
    

 

 

     

 

 

     

 

 

     

 

 

 
       792,137         956,832         1,479,372          
    

 

 

     

 

 

     

 

 

     

 

 

 
                
       3,363,280         210,014         3,597,679         (21,834 )
       280,766                 (1,491,185 )        
       (28,501 )               (82 )        
                
       9,400,981         1,235,560         1,826,222 *        
       107,143                 365,200          
       (2,225 )               28          
    

 

 

     

 

 

     

 

 

     

 

 

 
       13,121,444         1,445,574         4,297,862         (21,834 )
    

 

 

     

 

 

     

 

 

     

 

 

 
       13,913,581         2,402,406         5,777,234         (21,834 )
    

 

 

     

 

 

     

 

 

     

 

 

 

 

See accompanying Notes to Financial Statements.  |  105


Table of Contents

STATEMENTS OF CHANGES IN NET ASSETS

 

  
  

 

 

 

    Pyxis
 Alpha Trend Strategies Fund 
  Pyxis
 Alternative Income Fund 
    Period Ended
September 30, 2012(a)
($)
  Period Ended
September 30, 2012(b)
($)
   

 

 

     

 

 

 

Increase (Decrease) in Net Assets

       

Operations:

       

Net investment income (loss)

      (48,242 )       431,738  

Net realized gain (loss) on investments, short positions, future contracts, and foreign currency transactions

      (79,997 )       (569,928 )

Net increase (decrease) in unrealized appreciation (depreciation) on investments, short positions, future contracts, and foreign currency transactions

      50,597         138,574  
   

 

 

     

 

 

 

Net increase (decrease) from operations

      (77,642 )       384  
   

 

 

     

 

 

 

Distributions to shareholders from:

       

Net investment income

       

Class A

              (130,347 )

Class C

              (1,553 )

Class R

              (42,281 )

Class Y

              (260,193 )

Net realized gains

       

Class A

               
   

 

 

     

 

 

 

Total distributions

              (434,374 )
   

 

 

     

 

 

 

Increase (decrease) in net assets from operations and distributions

      (77,642 )       (433,990 )
   

 

 

     

 

 

 

Share transactions:

       

Proceeds from sale of shares

       

Class A

      2,052,496         6,458,910  

Class C

      51,800         73,200  

Class R

      397,000         1,666,540  

Class Y

      4,393,403         12,059,796  

Value of distributions reinvested

       

Class A

              100,396  

Class C

              1,553  

Class R

              12,151  

Class Y

              221,407  

Cost of shares redeemed

       

Class A

      (922,228 )       (859,213 )

Class B

               

Class C

               

Class R

      (46,170 )       (489,742 )

Class Y

      (1,425,120 )       (4,467,524 )

Reorganization (Note 10)

       

Class A

               

Class B

               

Class C

               

Class R

               

Class Y

               

Redemption fees (Note 2)

      9,364         3,532  
   

 

 

     

 

 

 

Net increase (decrease) from shares transactions

      4,510,545         14,781,006  
   

 

 

     

 

 

 

Total increase (decrease) in net assets

      4,432,903         14,347,016  

Net Assets

       

Beginning of period

               
   

 

 

     

 

 

 

End of period

      4,432,903         14,347,016  
   

 

 

     

 

 

 

Accumulated net investment income (loss)

      (18,601 )       33,574  
   

 

 

     

 

 

 

 

(a) Commenced operations on November 1, 2011.
(b) Commenced operations on January 13, 2012.
(c) Commenced operations on December 1, 2011.
(d) For the eight months ended September 30, 2011 (See Note 10).
(e) Commenced operations on November 14, 2011.

 

106  |  See accompanying Notes to Financial Statements.


Table of Contents

STATEMENTS OF CHANGES IN NET ASSETS (continued)

 

  
   Pyxis Funds II

 

    Pyxis
Energy and Materials Fund 
  Pyxis
Trend Following Fund
  Pyxis
Core America Equity Fund
  Pyxis
Dividend Equity Fund 
    Period Ended
September 30,

2012(c)
($)
  Year Ended
September 30, 

2012
($)
  Period Ended
September 30, 

2011(d)
($)
  Year Ended
January 31, 

2011
($)
  Year Ended
September 30,

2012
($)
  Year Ended
September 30, 

2011
($)
  Period Ended
September 30,

2012(e)
($)
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                           
      11,279          (87,238 )       (119,854 )       (296,186 )       245,161         324,501         104,617  
      328,372          (383,893 )       1,816,832         (640,729 )       2,210,038         2,876,305         2,789  
               (360,416 )       (1,939,166 )       2,323,403         5,382,956         (3,521,135 )       1,113,540  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      339,651          (831,547 )       (242,188 )       1,386,488         7,838,155         (320,329 )       1,220,946  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      (47 )                               (320,011 )       (268,259 )       (4,632 )
      (9 )                               (5,894 )               (4,891 )
      (38 )                               (2 )       (51 )        
      (21,254 )                               (1,014 )       (1,153 )       (146,302 )
               (65,979 )               (106,490 )                        
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      (21,348 )       (65,979 )               (106,490 )       (326,921 )       (269,463 )       (155,825 )
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      318,303          (897,526 )       (242,188 )       1,279,998         7,511,234         (589,792 )       1,065,121  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      10,000          336,158         8,092,365         11,838,887         949,375         1,410,912         394,384  
      10,000          74,864                         30,536         149,668         711,338  
      10,000                                          1,000          
      3,856,700                                  831         15,803         9,769,318  
      47          59,666                 102,432         299,324         251,030         3,333  
      9                                  4,680                 4,675  
      38                                  2         51          
      21,254                                  103                 25,101  
               (6,239,869 )       (23,435,665 )       (15,004,147 )       (6,209,682 )       (6,564,157 )       (4,443 )
                                       (106,756 )       (122,868 )        
               (25,186 )                       (307,245 )       (688,827 )       (6,328 )
                                               (10,613 )        
                                       (45,985 )       (71,605 )       (857,192 )
                                       163,434,133                  
                                       32,186                  
                                       2,021,107                  
                                       1,064                  
                                       3,055,407                  
               20                                         794  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      3,908,048          (5,794,347 )       (15,343,300 )       (3,062,828 )       163,159,080         (5,629,606 )       10,040,980  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      4,226,351          (6,691,873 )       (15,585,488 )       (1,782,830 )       170,670,314         (6,219,398 )       11,106,101  
                           
               8,885,215         24,470,703         26,253,533         30,738,559         36,957,957          
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      4,226,351          2,193,342         8,885,215         24,470,703         201,408,873         30,738,559         11,106,101  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      13,150         (66,092 )                       224,098         323,077         13,432  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

See accompanying Notes to Financial Statements.  |  107


Table of Contents

STATEMENTS OF CHANGES IN NET ASSETS

 

  
  

 

    Pyxis
Premier Growth Equity Fund
  Pyxis
Small-Cap Equity Fund
    Year Ended
September 30, 
2012

($)
  Year Ended
September 30, 
2011

($)
  Year Ended
September 30, 
2012

($)
  Year Ended
September 30, 
2011

($)
   

 

 

     

 

 

     

 

 

     

 

 

 

Increase (Decrease) in Net Assets

               

Operations:

               

Net investment income (loss)

      199,967         (59,070 )       (349,383 )       (298,619 )

Net realized gain (loss) on investments, future contracts, and foreign currency transactions

      9,782,289         10,762,075         3,705,376         7,937,494  

Net increase (decrease) in unrealized appreciation (depreciation) on investments, future contracts, and foreign currency transactions

      36,327,521         (4,515,683 )       5,754,801         (5,286,167 )
   

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from operations

      46,309,777         6,187,322         9,110,794         2,352,708  
   

 

 

     

 

 

     

 

 

     

 

 

 

Distributions to shareholders from:

               

Net investment income

               

Class A

                               

Class B

                               

Class C

                               

Class R

                               

Class Y

                               

Net realized gains

               

Class A

                               

Class B

                               

Class C

                               
   

 

 

     

 

 

     

 

 

     

 

 

 

Total distributions

                               
   

 

 

     

 

 

     

 

 

     

 

 

 

Increase (decrease) in net assets from operations and distributions

      46,309,777         6,187,322         9,110,794         2,352,708  
   

 

 

     

 

 

     

 

 

     

 

 

 

Share transactions:

               

Proceeds from sale of shares

               

Class A

      7,886,855         11,124,290         1,385,562         6,583,918  

Class B

      518                          

Class C

      384,137         912,039         256,582         166,448  

Class R

      25,457         133,198                 1,000  

Class Y

      2,859,803         13,747,737         187,440         6,010  

Value of distributions reinvested

               

Class A

                               

Class B

                               

Class C

                               

Class R

                               

Class Y

                               

Cost of shares redeemed

               

Class A

      (25,639,343 )       (45,686,096 )       (7,150,865 )       (12,370,312 )

Class B

      (157,389 )       (403,455 )       (116,058 )       (262,370 )

Class C

      (3,185,420 )       (4,722,712 )       (574,531 )       (566,082 )

Class R

      (22,576 )       (55,743 )               (11,523 )

Class Y

      (10,151,043 )       (27,974,247 )       (5,862 )       (4,178 )

Capital contribution (Note 1)

               

Class Y

                               
   

 

 

     

 

 

     

 

 

     

 

 

 

Net decrease from shares transactions

      (27,999,001 )       (52,924,989 )       (6,017,732 )       (6,457,089 )
   

 

 

     

 

 

     

 

 

     

 

 

 

Total increase (decrease) in net assets

      18,310,776         (46,737,667 )       3,093,062         (4,104,381 )

Net Assets

               

Beginning of period

      144,654,997         191,392,664         34,167,513         38,271,894  
   

 

 

     

 

 

     

 

 

     

 

 

 

End of period

      162,965,773         144,654,997         37,260,575         34,167,513  
   

 

 

     

 

 

     

 

 

     

 

 

 

Accumulated net investment income (loss)

      193,751         (6,216 )       (331,201 )       (1,517 )
   

 

 

     

 

 

     

 

 

     

 

 

 

 

108  |  See accompanying Notes to Financial Statements.


Table of Contents

STATEMENTS OF CHANGES IN NET ASSETS (continued)

 

  
   Pyxis Funds II

 

     Pyxis
Global Equity Fund
  Pyxis
International Equity Fund
  Pyxis
Total Return Fund
  Pyxis
Tax-Exempt Fund
     Year Ended
September 30,
2012

($)
  Year Ended
September 30, 

2011
($)
  Year Ended
September 30,

2012
($)
  Year Ended
September 30, 
2011
($)
  Year Ended
September 30,
2012
($)
  Year Ended
September 30, 
2011
($)
  Year Ended
September 30,
2012
($)
  Year Ended
September 30, 
2011
($)
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                                
    

 

 

 

847

 

 

      23,517         21,676         149,348         792,137         1,085,907         956,832         1,147,233  
                                
       527,638         5,136,028         (424,465 )       2,565,388         3,615,545         8,930,551         210,014         90,924  
                                
       3,859,367         (6,189,325 )       2,397,790         (4,520,605 )       9,505,899         (11,276,608 )       1,235,560         (625,631 )
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
    

 

 

 

4,387,852

 

 

      (1,029,780 )       1,995,001         (1,805,869 )       13,913,581         (1,260,150 )       2,402,406         612,526  
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
    

 

 

 

 

 

      (46,933 )       (142,377 )       (225,884 )       (1,029,000 )       (585,877 )       (919,180 )       (1,084,606 )
                                                       (69 )       (323 )
                       (6,098 )       (3,972 )       (31,534 )               (32,604 )       (48,027 )
                       (3 )       (55 )       (5 )       (35 )                
               (65,866 )       (7,671 )       (56,219 )       (2,892 )       (42,764 )       (4,979 )       (14,277 )
                                
                                                                
                                                                
                                                                
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
               (112,799 )       (156,149 )       (286,130 )       (1,063,431 )       (628,676 )       (956,832 )       (1,147,233 )
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
       4,387,852         (1,142,579 )       1,838,852         (2,091,999 )       12,850,150         (1,888,826 )       1,445,574         (534,707 )
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
    

 

 

 

540,862

 

 

      1,210,392         319,568         797,219         1,353,810         3,348,051         1,018,836         1,600,207  
                                               11,931                  
       19,326         20,330         46,596         209,227         93,556         690,846         116,122         97,333  
               999                 1,000                 1,000                  
               336,264         60,084         19,403         1,177         234,986         54,152         331,828  
               44,454         132,726         214,247         910,322         534,829         557,374         790,185  
                                                       69         128  
                       5,921         3,835         19,953                 12,605         16,966  
                       3         55         5         35                  
               65,866         7,587         55,522         1,373         40,543         148         213  
                                
       (4,371,970 )       (5,250,692 )       (2,827,269 )       (12,160,956 )       (18,261,342 )       (27,061,197 )       (5,225,265 )       (5,952,536 )
       (18,957 )       (26,184 )       (40,603 )       (72,739 )       (252,797 )       (772,713 )       (3,188 )       (16,736 )
       (1,139 )       (46,348 )       (365,340 )       (405,675 )       (2,467,693 )       (4,077,381 )       (142,953 )       (1,079,267 )
               (9,050 )               (8,402 )               (9,982 )                
               (17,775,025 )               (4,095,165 )       (55,719 )       (5,412,716 )       (60,156 )       (841,815 )
                                
               2,845                                 344                  
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
       (3,831,878 )       (21,426,149 )       (2,660,727 )       (15,442,429 )       (18,657,355 )       (32,471,424 )       (3,672,256 )       (5,053,494 )
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
       555,974         (22,568,728 )       (821,875 )       (17,534,428 )       (5,807,205 )       (34,360,250 )       (2,226,682 )       (5,588,201 )
                                
       22,924,792         45,493,520         13,418,489         30,952,917         88,344,564         122,704,814         37,882,746         43,470,947  
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
       23,480,766         22,924,792         12,596,614         13,418,489         82,537,359         88,344,564         35,656,064         37,882,746  
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
       (18,797 )       (8,211 )       (3,876 )       129,809         703,368         1,003,132         50,585         50,585  
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

See accompanying Notes to Financial Statements.  |  109


Table of Contents

STATEMENTS OF CHANGES IN NET ASSETS

 

  
  

Pyxis Funds II

 

     Pyxis
Fixed Income Fund
  Pyxis
Money Market Fund II
     Year Ended
September 30,
2012
($)
  Year Ended
September 30, 
2011
($)
  Year Ended
September 30,
2012
($)
  Year Ended
September 30, 
2011
($)
    

 

 

     

 

 

     

 

 

     

 

 

 

Increase (Decrease) in Net Assets

                

Operations:

                

Net investment income

       1,479,372         2,922,067                 11,129  

Net realized gain (loss) on investments, future contracts, and foreign currency transactions

       2,106,412         4,379,370         (21,834 )       9,424  

Net increase (decrease) in unrealized appreciation (depreciation) on investments, future contracts, and foreign currency transactions

       2,191,450         (1,894,332 )                
    

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from operations

       5,777,234         5,407,105         (21,834 )       20,553  
    

 

 

     

 

 

     

 

 

     

 

 

 

Distributions to shareholders from:

                

Net investment income

                

Class A

       (1,884,566 )       (3,167,820 )                

Class B

       (1,046 )       (2,516 )                

Class C

       (16,294 )       (20,094 )                

Class R

       (19 )       (146 )                

Class Y

       (22,285 )       (55,587 )                

Retail Class

                               (2 )

Institutional Class

                               (11,127 )

Net realized gains

                

Retail Class

                       (8,535 )       (602 )

Institutional Class

                       (924 )       (3,934 )

Return of Capital

                

Class A

       (176,683 )                        

Class B

       (98 )                        

Class C

       (1,528 )                        

Class R

       (2 )                        

Class Y

       (2,089 )                        
    

 

 

     

 

 

     

 

 

     

 

 

 

Total distributions

       (2,104,610 )       (3,246,163 )       (9,459 )       (15,665 )
    

 

 

     

 

 

     

 

 

     

 

 

 

Increase (decrease) in net assets from operations and distributions

       3,672,624         2,160,942         (31,293 )       4,888  
    

 

 

     

 

 

     

 

 

     

 

 

 

Share transactions:

                

Proceeds from sale of shares

                

Class A

       4,171,071         3,780,125                  

Class B

               7                  

Class C

       926,358         234,981                  

Class R

               1,000                  

Class Y

       102,877         83,788                  

Retail Class

                       5,024,117         13,287,276  

Institutional Class

                       23,813,819         1,677,451,271  

Value of distributions reinvested

                

Class A

       1,884,196         2,707,884                  

Class B

       429         1,107                  

Class C

       14,768         18,089                  

Class R

       21         133                  

Class Y

       23,353         49,317                  

Retail Class

                       7,875         572  

Institutional Class

                       880         15,064  

Cost of shares redeemed

                

Class A

       (14,121,804 )       (13,282,145 )                

Class B

       (76,199 )       (49,300 )                

Class C

       (251,996 )       (356,010 )                

Class R

               (11,053 )                

Class Y

       (230,364 )       (1,759,133 )                

Retail Class

                       (19,503,393 )       (55,243,853 )

Institutional Class

                       (16,821,240 )       (1,945,923,813 )

Reorganization (Note 10)

                

Class A

       112,463,310                          

Class B

       107,499                          

Class C

       3,470,117                          

Class R

       1,008                          

Class Y

       564,429                          

Redemption in Kind

                

Institutional Class (Note 8)

                               (580,106,723 )
    

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from shares transactions

       109,049,073         (8,581,210 )       (7,477,942 )       (890,520,206 )
    

 

 

     

 

 

     

 

 

     

 

 

 

Total increase (decrease) in net assets

       112,721,697         (6,420,268 )       (7,509,235 )       (890,515,318 )

Net Assets

                

Beginning of period

       96,082,338         102,502,606         82,811,923         973,327,241  
    

 

 

     

 

 

     

 

 

     

 

 

 

End of period

       208,804,035         96,082,338         75,302,688         82,811,923  
    

 

 

     

 

 

     

 

 

     

 

 

 

Accumulated net investment loss

       (850,164 )       (269,643 )               (3 )
    

 

 

     

 

 

     

 

 

     

 

 

 

 

110  |  See accompanying Notes to Financial Statements.


Table of Contents

 

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Table of Contents

STATEMENTS OF CHANGES IN NET ASSETS

CAPITAL STOCK ACTIVITY - SHARES

 

  
  
           
    Pyxis
  Alpha Trend Strategies Fund 
  Pyxis
 Alternative Income Fund 
  Pyxis
 Energy and Materials Fund 
    Period Ended
September 30, 2012(a)
  Period Ended
September 30, 2012
(b)
  Period Ended
September 30, 2012(c)
   

 

 

     

 

 

     

 

 

 

Class A:

           

Shares sold

      215,510         655,736         1,000  

Issued for distribution reinvested

              10,321         5  

Shares redeemed

      (98,658 )       (88,402 )        

Subscriptions from Reorganization (Note 10)

                       
   

 

 

     

 

 

     

 

 

 

Net increase (decrease) in fund shares

      116,852         577,655         1,005  
   

 

 

     

 

 

     

 

 

 

Class B:

           

Shares sold

                       

Shares redeemed

                       

Subscriptions from Reorganization (Note 10)

                       
   

 

 

     

 

 

     

 

 

 

Net decrease in fund shares

                       
   

 

 

     

 

 

     

 

 

 

Class C:

           

Shares sold

      5,462         7,400         1,000  

Issued for distribution reinvested

              159         1  

Shares redeemed

                       

Subscriptions from Reorganization (Note 10)

                       
   

 

 

     

 

 

     

 

 

 

Net increase (decrease) in fund shares

      5,462         7,559         1,001  
   

 

 

     

 

 

     

 

 

 

Class R:

           

Shares sold

      40,179         167,179         1,000  

Issued for distribution reinvested

              1,241         3  

Shares redeemed

      (4,768 )       (50,020 )        

Subscriptions from Reorganization (Note 10)

                       
   

 

 

     

 

 

     

 

 

 

Net increase (decrease) in fund shares

      35,411         118,400         1,003  
   

 

 

     

 

 

     

 

 

 

Class Y:

           

Shares sold

      464,656         1,212,560         379,524  

Issued for distribution reinvested

              22,620         2,082  

Shares redeemed

      (151,237 )       (451,560 )        

Subscriptions from Reorganization (Note 10)

                       
   

 

 

     

 

 

     

 

 

 

Net increase (decrease) in fund shares

      313,419         783,620         381,606  
   

 

 

     

 

 

     

 

 

 

 

 

(a) Commenced operations on November 1, 2011.
(b) Commenced operations on January 13, 2012.
(c) Commenced operations on December 1, 2011.
(d) For the eight months ended September 30, 2011 (See Note 10).
(e) Commenced operations on November 14, 2011.

 

112  |  See accompanying Notes to Financial Statements.


Table of Contents
  
   Pyxis Funds II
    Pyxis
Trend Following Fund
  Pyxis
Core America Equity Fund
  Pyxis
Dividend Equity Fund 
  Pyxis
Premier Growth Equity Fund
    Year Ended
September 30,
2012
  Period Ended
September 30,
2011
(d)
  Year Ended 
January 31,
2011
  Year Ended
September 30, 
2012
  Year Ended
September 30, 
2011
  Period Ended
September 30,

2012(e)
  Year Ended
September 30, 
2012
  Year Ended
September 30, 
2011
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                               
      35,080         738,009         1,108,826         99,121         148,166         35,579         332,718         517,149  
      6,222                 9,179         34,287         27,050         292                  
      (658,389 )       (2,080,742 )       (1,409,740 )       (650,795 )       (697,511 )       (398 )       (1,108,302 )       (2,082,392 )
                              15,968,115                                  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      (617,087 )       (1,342,733 )       (291,735 )       15,450,728         (522,295 )       35,473         (775,584 )       (1,565,243 )
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                                                        25          
                              (11,574 )       (13,633 )               (7,638 )       (21,489 )
                              3,319                                  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                              (8,255 )       (13,633 )               (7,613 )       (21,489 )
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      7,959                         3,478         16,784         67,795         18,814         48,344  
                              573                 427                  
      (2,660 )                       (34,105 )       (79,894 )       (556 )       (160,742 )       (249,229 )
                              212,545                                  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      5,299                         182,491         (63,110 )       67,666         (141,928 )       (200,885 )
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                                      101                 1,092         6,023  
                                      5                          
                                      (1,076 )               (930 )       (2,456 )
                              103                                  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                              103         (970 )               162         3,567  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                              85         1,463         946,933         119,672         611,415  
                              11                 2,307                  
                              (4,467 )       (6,998 )       (79,655 )       (429,549 )       (1,223,724 )
                              268,531                                  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                              264,160         (5,535 )       869,585         (309,877 )       (612,309 )
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

See accompanying Notes to Financial Statements.  |  113


Table of Contents

STATEMENTS OF CHANGES IN NET ASSETS

CAPITAL STOCK ACTIVITY - SHARES (continued)

 

  
  

 

     Pyxis
Small-Cap Equity Fund
  Pyxis
Global Equity Fund
  Pyxis
International Equity Fund
     Year Ended
September 30,
2012
  Year Ended
September 30, 
2011
  Year Ended
September 30,
2012
  Year Ended
September 30, 
2011
  Year Ended
September 30,
2012
  Year Ended
September 30, 
2011
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Class A:

                        

Shares sold

       112,653         579,961         28,524         59,031         27,608         60,850  

Issued for distribution reinvested

                               2,143         12,569         16,380  

Shares redeemed

       (590,883 )       (1,093,848 )       (226,521 )       (254,182 )       (248,031 )       (909,542 )

Subscriptions from Reorganization (Note 10)

                                                
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) in fund shares

       (478,230 )       (513,887 )       (197,997 )       (193,008 )       (207,854 )       (832,312 )
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Class B:

                        

Shares sold

                                                

Issued for distribution reinvested

                                                

Shares redeemed

       (10,947 )       (26,990 )       (1,117 )       (1,369 )       (3,811 )       (5,973 )

Subscriptions from Reorganization (Note 10)

                                                
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) in fund shares

       (10,947 )       (26,990 )       (1,117 )       (1,369 )       (3,811 )       (5,973 )
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Class C:

                        

Shares sold

       24,412         16,904         1,101         1,065         4,526         17,055  

Issued for distribution reinvested

                                       613         319  

Shares redeemed

       (55,459 )       (57,367 )       (66 )       (2,430 )       (34,086 )       (33,320 )

Subscriptions from Reorganization (Note 10)

                                                
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) in fund shares

       (31,047 )       (40,463 )       1,035         (1,365 )       (28,947 )       (15,946 )
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Class R:

                        

Shares sold

               85                 46                 73  

Issued for distribution reinvested

                                               4  

Shares redeemed

               (981 )               (414 )               (615 )

Subscriptions from Reorganization (Note 10)

                                                
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) in fund shares

               (896 )               (368 )               (538 )
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Class Y:

                        

Shares sold

       14,791         474                 16,544         5,440         1,512  

Issued for distribution reinvested

                               3,169         710         4,194  

Shares redeemed

       (507 )       (355 )               (836,159 )               (346,321 )

Subscriptions from Reorganization (Note 10)

                                                
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) in fund shares

       14,284         119                 (816,446 )       6,150         (340,615 )
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Retail Class:

                        

Shares sold

                                                

Issued for distribution reinvested

                                                

Shares redeemed

                                                
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net decrease in fund shares

                                                
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Institutional Class:

                        

Shares sold

                                                

Issued for distribution

                                                

Shares redeemed

                                                

Redemption in kind (Note 8)

                                                
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) in fund shares

                                                
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

114  |  See accompanying Notes to Financial Statements.


Table of Contents

 

 

  
   Pyxis Funds II

 

    Pyxis
Total Return Fund
  Pyxis
Tax-Exempt Fund
  Pyxis
Fixed Income Fund
  Pyxis
Money Market Fund II
    Year Ended
September 30,
2012
  Year Ended
September 30, 
2011
  Year Ended
September 30,
2012
  Year Ended
September 30, 

2011
  Year Ended
September 30,
2012
  Year Ended
September 30, 
2011
  Year Ended
September 30,
2012
  Year Ended
September 30, 
2011
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                               
      69,189          168,356         83,896         139,113         326,852         307,769                  
      48,344          26,957         45,975         68,320         147,039         219,915                  
      (922,719 )       (1,358,868 )       (430,408 )       (517,804 )       (1,106,247 )       (1,081,378 )                
                                       8,619,582                          
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      (805,186 )       (1,163,555 )       (300,537 )       (310,371 )       7,987,226         (553,694 )                
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                               
               602                                 1                  
                       6         11         34         90                  
      (13,284 )       (40,054 )       (263 )       (1,470 )       (5,875 )       (4,023 )                
                                       8,241                          
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      (13,284 )       (39,452 )       (257 )       (1,459 )       2,400         (3,932 )                
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                               
      5,191          37,693         9,667         8,484         72,314         18,784                  
      1,141                  1,039         1,467         1,150         1,468                  
      (136,539 )       (220,074 )       (11,783 )       (94,401 )       (19,713 )       (28,950 )                
                                       265,608                          
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      (130,207 )       (182,381 )       (1,077 )       (84,450 )       319,359         (8,698 )                
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                               
               48                                 82                  
               2                         2         11                  
               (488 )                               (914 )                
                                       77                          
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
               (438 )                       79         (821 )                
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                               
      62          11,864         4,110         26,964         8,169         6,852                  
      73          2,022         11         17         1,826         4,018                  
      (2,930 )       (267,181 )       (4,602 )       (67,141 )       (18,312 )       (144,745 )                
                                       43,318                          
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
      (2,795 )       (253,295 )       (481 )       (40,160 )       35,001         (133,875 )                
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                               
                                                       5,024,117         13,238,358  
                                                       7,875         572  
                                                       (19,503,393 )       (55,243,853 )
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                                                       (14,471,401 )       (42,004,923 )
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                               
                                                       23,813,819         1,677,437,008  
                                                       880         15,064  
                                                       (16,821,240 )       (1,945,923,813 )
                                                               (580,106,723 )
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                                                       6,993,459         (848,578,464 )
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

See accompanying Notes to Financial Statements.  |  115


Table of Contents

STATEMENT OF CASH FLOWS

 

  
For the Period Ended September 30, 2012   

 

                    Pyxis
Alternative Income Fund 
($)
           

 

 

 

Cash Flows Provided by Operating Activities

           

Net increase from operations

              384  
           

Adjustments to Reconcile Net Investment Loss to Net Cash used in Operating Activities

           

Net realized loss on investments and securities sold short

              569,928  

Net change in unrealized appreciation on investments and securities sold short

              (138,574 )

Purchases of investment securities

              (115,874,516 )

Proceeds from disposition of investment securities

              102,941,635  

Purchases of short-term investments

              (91,099,963 )

Proceeds from disposition of short-term investments

              90,988,201  

Proceeds from securities sold short

              67,815,915  

Payments to cover securities sold short

              (65,331,213 )

Changes in assets and liabilities:

           

Incease in receivable for investments sold

              (7,416,632 )

Increase in dividend and interest receivable

              (1,577 )

Increase in offering costs

              (16,002 )

Increase in payable for investments purchased

              3,043,204  

Increase in due to broker

              213,440  

Increase in payable for trustee fees

              1,034  

Increase in payable for distribution and services fees

              1,369  

Increase in payable for transfer agent fees

              2,994  

Increase in payable for custody fees

              1,246  

Increase in accrued expenses and other liabilities

              21,182  
           

 

 

 

Net cash flow used by operating activities

              (14,278,329 )
           

Cash Flows Provided by Financing Activities

           

Proceeds from shares sold

              20,258,446  

Receivable from shares sold

              (113,011 )

Payment of shares redeemed

              (5,812,947 )

Payable for shares redeemed

              30,066  

Distributions paid in cash

              (98,867 )

Payable for distributions

              14,258  
           

 

 

 

Net cash flow provided by financing activities

              14,277,945  
           

Net increase in cash

               
           

Cash

           

Beginning of the year

               
           

 

 

 

End of the year

               
           

 

 

 

 

116  |


Table of Contents

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Table of Contents

FINANCIAL HIGHLIGHTS

 

  

 

For the Years or Periods Ended September 30 Selected data for a share outstanding throughout each period is as follows:

 

         

 

Income from Investment Operations

   

 

Less Distributions From

                      Ratios and Supplemental Data        
    

Net

Asset

Value,

Beginning

of Period

   

Net

Investment

Income/

(Loss)

(a)

   

 

Net Realized
and  Unrealized

Gain
(Loss) on

Investments

   

Total

from
Operations

   

Net

Investment
Income

   

Net

Realized
Gains

   

Total

Distributions

   

Redemption

Fees

   

Net

Asset

Value,

End

of Period

   

Total
Return

(b)

   

Net Assets,

End

of Period

(000)

   

Net

Investment

Loss

   

Net

Expenses

    Gross
Expenses
    Portfolio
Turnover
Rate
 

Pyxis Alpha Trend Strategies Fund

  

     

Class A

                             

2012(c)

  $ 10.00      $ (0.13   $ (0.51   $ (0.64   $ —        $ —        $ —        $ 0.02      $ 9.38        (6.20 )%(d)    $ 1,097        (1.55 )%      2.35 %(e)(f)      6.72 %(e)(f)      2,624 %(d) 

Class C

                             

2012(c)

  $ 9.56      $ (0.12   $ (0.08   $ (0.20   $ —        $ —        $ —        $ —        $ 9.36        (2.09 )%(d)    $ 51        (2.20 )%      3.00 %(e)(f)      7.37 %(e)(f)      2,624 %(d) 

Class R

                             

2012(c)

  $ 10.00      $ (0.14   $ (0.47   $ (0.61   $ —        $ —        $ —        $ 0.02      $ 9.41        (5.90 )%(d)    $ 333        (1.70 )%      2.50 %(e)(f)      6.87 %(e)(f)      2,624 %(d) 

Class Y

                             

2012(c)

  $ 10.00      $ (0.10   $ (0.50   $ (0.60   $ —        $ —        $ —        $ 0.02      $ 9.42        (5.80 )%(d)    $ 2,952        (1.20 )%      2.00 %(e)(f)      6.37 %(e)(f)      2,624 %(d) 
                                                                                           
         

 

Income from Investment Operations

   

 

Less Distributions From

                     

 

Ratios and Supplemental Data

       
    

Net

Asset Value,

Beginning of

Period

   

Net

Investment
Income

(a)

   

 

Net Realized

and Unrealized

Gain

(Loss) on

Investments

   

Total

from
Operations

   

Net

Investment
Income

   

Net

Realized
Gains

   

Total

Distributions

   

Redemption

Fees

   

Net

Asset

Value,

End

of Period

   

Total

Return

(b)

   

Net

Assets,

End

of Period

(000)

   

Net

Investment

Loss

   

Net

Expenses

    Gross
Expenses
    Portfolio
Turnover
Rate
 

Pyxis Alternative Income Fund

  

       

Class A

                             

2012(g)

  $ 10.00      $ 0.36      $ (0.37   $ (0.01   $ (0.35   $ —        $ (0.35   $ —   (h)    $ 9.64        (0.10 )%(d)    $ 5,570        5.29     1.94 %(e)(i)      3.94 %(e)(i)      1,081 %(d) 

Class C

                             

2012(g)

  $ 10.00      $ 0.33      $ (0.35   $ (0.02   $ (0.33   $ —        $ (0.33   $ —   (h)    $ 9.65        (0.15 )%(d)    $ 73        4.82     2.41 %(e)(i)      4.59 %(e)(i)      1,081 %(d) 

Class R

                             

2012(g)

  $ 10.00      $ 0.36      $ (0.38   $ (0.02   $ (0.33   $ —        $ (0.33   $ —   (h)    $ 9.65        (0.19 )%(d)    $ 1,142        5.14     2.09 %(e)(i)      4.09 %(e)(i)      1,081 %(d) 

Class Y

                             

2012(g)

  $ 10.00      $ 0.40      $ (0.38   $ 0.02      $ (0.37   $ —        $ (0.37   $ —   (h)    $ 9.65        0.17 %(d)    $ 7,562        5.64     1.59 %(e)(i)      3.59 %(e)(i)      1,081 %(d) 
                                                                                           
         

 

Income from Investment Operations

   

 

Less Distributions From

                     

 

Ratios and Supplemental Data

       
    

 

Net

Asset

Value,

Beginning

of Period

   

Net

Investment
Income/

(Loss)

(a)

   

Net Realized

and Unrealized
Gain

(Loss) on
Investments

   

Total

from
Operations

   

Net

Investment
Income
/

(Loss)

   

Net

Realized
Gains

   

Total

Distributions

   

Redemption

Fees

   

Net

Asset

Value,

End

of Period

   

Total

Return

(b)

   

Net Assets,

End

of Period

(000)

   

Net

Investment
Income/

(Loss)

   

Net

Expenses

    Gross
Expenses
    Portfolio
Turnover
Rate
 

Pyxis Energy and Materials Fund

  

     

Class A

                             

2012(j)

  $ 10.00      $ 0.01      $  1.02      $ 1.03      $ (0.05   $ —        $ (0.05   $ —        $ 10.98        10.31 %(d)    $ 11        0.07     2.25 %(k)      6.88 %(k)      254 %(d) 

Class C

                             

2012(j)

  $ 10.00      $ (0.05   $ 1.02      $ 0.97      $ (0.01   $ —        $ (0.01   $ —        $ 10.96        9.69 %(d)    $ 11        (0.58 )%      2.90 %(k)      7.53 %(k)      254 %(d) 

Class R

                             

2012(j)

  $ 10.00      $ (0.01   $ 1.03      $ 1.02      $ (0.04   $ —        $ (0.04   $ —        $ 10.98        10.11 %(d)    $ 11        (0.08 )%      2.40 %(k)      7.03 %(k)      254 %(d) 

Class Y

                             

2012(j)

  $ 10.00      $ 0.04      $ 1.02      $ 1.06      $ (0.07   $ —        $ (0.07   $ —        $ 10.99        10.63 %(d)    $ 4,193        0.42     1.90 %(k)      6.53 %(k)      254 %(d) 
                                                                                           
         

 

Income from Investment Operations

   

 

Less Distributions From

                     

 

Ratios and Supplemental Data

       
    

Net

Asset

Value,
Beginning

of Period

    Net
Investment
Loss
(a)
   

 

Net Realized
and Unrealized
Gain

(Loss) on
Investments

   

Total

from
Operations

    Net
Investment
Income
   

Net

Realized
Gains

    Total
Distributions
    Redemption
Fees
   

Net

Asset

Value,

End of

Period

   

Total

Return(b)

   

Net Assets,

End

of Period

(000)

    Net
Investment
Loss
    Net
Expenses
    Gross
Expenses
    Portfolio
Turnover
Rate
 

Pyxis Trend Following Fund

  

     

Class A

                             

2012

  $ 10.49      $ (0.14   $ (0.93   $ (1.07   $ —        $ (0.09   $ (0.09   $ —   (h)    $ 9.33        (10.19 )%    $ 2,144        (1.45 )%      2.25 %(e)      5.18 %(e)      848

 

 

2011(l)

    11.18        (0.11     (0.58     (0.69     —          —          —          —          10.49        (6.17 )(d)      8,885        (1.57     2.25 (e)      3.54 (e)      256 (d) 

2011(m)

    10.58        (0.13     0.78        0.65        —          (0.05     (0.05     —          11.18        6.13        24,471        (1.24     2.25 (e)      2.79 (e)      213   

2010(n)

    10.00        (0.14     0.76        0.62        —          (0.04     (0.04     —          10.58        6.19 (d)      26,254        (1.54     2.25 (e)      3.72 (e)      626 (d) 

Class C

                             

2012(o)

  $   9.47      $ (0.12   $ (0.05   $ (0.17   $ —        $ —        $ —        $ —   (h)    $ 9.30        (1.80 %)(d)      49        (2.10 )%      2.90 %(e)      6.96 %(e)      848

 

118  |  See accompanying Notes to Financial Statements.


Table of Contents

FINANCIAL HIGHLIGHTS

 

  
  

 

         

 

Income from Investment Operations

    Less Distributions From                       Ratios and Supplemental Data        
     Net
Asset
Value,
Beginning
of Period
    Net
Investment
Income/
(Loss)
(a)
   

Net Realized
and  Unrealized

Gain
(Loss) on

Investments

   

Total

from
Operations

    Net
Investment
Income
   

Net

Realized

Gains

    Total
Distributions
    Redemption
Fees
   

Net

Asset

Value,

End

of Period

   

Total

Return(b)

   

Net Assets,

End
of Period
(000)

   

Net
Investment

Income/

(Loss)

   

Net

Expenses

    Gross
Expenses
    Portfolio
Turnover
Rate
 

Pyxis Core America Equity Fund

  

                     

Class A

                             

2012

  $ 8.15      $ 0.07      $ 2.11      $ 2.18      $ (0.09   $   —        $ (0.09   $ —        $ 10.24        26.97   $ 194,779        0.77     1.41     1.41     47

2011

    8.45        0.08        (0.31     (0.23     (0.07     —          (0.07     —          8.15        (2.85     29,171        0.89        1.13 (p)      1.13        47   

2010

    8.07        0.08        0.38        0.46        (0.08     —          (0.08     —          8.45        5.70        34,667        1.00        1.36 (p)      1.41        50   

2009

    8.86        0.10        (0.69     (0.59     (0.10     (0.10     (0.20     —          8.07        (6.11     34,466        1.39        1.33 (p)      1.52        69   

2008

    12.82        0.08        (1.80     (1.72     (0.08     (2.16     (2.24     —          8.86        (15.86     42,078        0.76        1.17 (p)      1.35        67   

Class B

                             

2012

  $ 7.70      $ —   (h)    $ 2.00      $ 2.00      $ —        $ —        $ —        $ —        $ 9.70        25.97   $ 61        0.02 %         2.16     2.16     47

2011

    7.99        0.01        (0.30     (0.29     —          —          —          —          7.70        (3.63     112        0.14        1.88 (p)      1.88        47   

2010

    7.67        0.01        0.36        0.37        (0.05     —          (0.05     —          7.99        4.84        225        0.14        2.12 (p)      2.15        50   

2009

    8.36        0.04        (0.63     (0.59     —          (0.10     (0.10     —          7.67        (6.75     626        0.68        2.08 (p)      2.27        69   

2008

    12.21        (— )(h)      (1.69     (1.69     (—   )(h)      (2.16     (2.16     —          8.36        (16.42     1,509        (0.01 )        1.92 (p)      2.10        67   

Class C

                             

2012

  $ 7.58      $ —   (h)    $ 1.96      $ 1.96      $ (0.03   $ —        $ (0.03   $ —        $ 9.51        25.97   $ 3,443        0.02     2.16     2.16     47

2011

    7.86        0.01        (0.29     (0.28     —          —          —          —          7.58        (3.56     1,361        0.14        1.88 (p)      1.88        47   

2010

    7.54        0.02        0.34        0.36        (0.04     —          (0.04     —          7.86        4.83        1,907        0.25        2.12 (p)      2.16        50   

2009

    8.28        0.04        (0.64     (0.60     (0.04     (0.10     (0.14     —          7.54        (6.76     1,852        0.60        2.08 (p)      2.27        69   

2008

    12.12        (— )(h)      (1.68     (1.68     (—   )(h)      (2.16     (2.16     —          8.28        (16.45     1,098        (— )(h)      1.92 (p)      2.10        67   

Class R

                             

2012

  $ 8.16      $ 0.05      $ 2.14      $ 2.19      $ (0.02   $ —        $ (0.02   $ —        $ 10.33        26.87   $ 2        0.52     1.66     1.66     47

2011

    8.44        0.06        (0.29     (0.23     (0.05     —          (0.05     —          8.16        (2.82     1        0.64        1.38 (p)      1.38        47   

2010

    8.06        0.06        0.37        0.43        (0.05     —          (0.05     —          8.44        5.34        9        0.75        1.61 (p)      1.66        50   

2009

    8.85        0.08        (0.69     (0.61     (0.08     (0.10     (0.18     —          8.06        (6.35     9        1.11        1.58 (p)      1.77        69   

2008(q)

    9.66        0.04        (0.85     (0.81     (— )(h)      (— )(h)      (— )(h)      —          8.85        (8.39 )(d)      9        0.59        1.42 (p)      1.60        67   

Class Y

                             

2012

  $ 9.04      $ 0.08      $ 2.37      $ 2.45      $ (0.11   $ —        $ (0.11   $ —        $ 11.38        27.34   $ 3,124        1.02     1.16     1.16     47

2011

    9.37        0.12        (0.36     (0.24     (0.09     —          (0.09     —          9.04        (2.68     94        1.14        0.88 (p)      0.88        47   

2010

    8.94        0.10        0.43        0.53        (0.10     —          (0.10     —          9.37        5.88        149        1.19        1.11 (p)      1.14        50   

2009

    9.79        0.12        (0.75     (0.63     (0.12     (0.10     (0.22     —          8.94        (5.83     294        1.48        1.01 (p)      1.07        69   

2008

    13.91        0.13        (1.98     (1.85     (0.11     (2.16     (2.27     —          9.79        (15.56     9        1.13        0.92 (p)      1.10        67   

 

(a) Net investment income per share is based on average shares outstanding during the period.
(b) Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the adviser not absorbed a portion of expenses, total returns would have been lower.
(c) Class A commenced operations on November 2, 2011, Class C commenced operations on February 27, 2012 and Class R commenced operations on November 9, 2011 and Class Y commenced operations on November 1, 2011.
(d) Not annualized.
(e) Does not include expenses of investment companies in which the Fund invests.
(f) Ratios of expenses to average net assets excludes dividends and fees on short sales. Gross and net expense ratios would have been 6.80% and 2.43% for Class A, 7.45% and 3.08% for Class C, 6.95% and 2.58% for Class R, 6.45% and 2.08% for Class Y, respectively.
(g) Class commenced operations on January 13, 2012.
(h) Less than $0.005 per share or less than 0.005%.
(i) Ratios of expenses to average net assets excludes dividends and fees on short sales. Gross and net expense ratios would have been 4.01% and 2.01% for Class A, 4.66% and 2.48% for Class C, 4.16% and 2.16% for Class R, 3.66% and 1.66% for Class Y, respectively.
(j) Class commenced operations on December 1, 2011.
(k) Ratios of expenses to average net assets excludes dividends and fees on short sales. Gross and net expense ratios would have been 6.90% and 2.27% for Class A, 7.55% and 2.92% for Class C, 7.05% and 2.42% for Class R, 6.55% and 1.92% for Class Y, respectively.
(l) For the eight months ended September 30, 2011 (See Note 10).
(m) For the year ended January 31, 2011 (See Note 10).
(n) For period ended January 31, 2010. Fund commenced operations on March 31, 2009.
(o) Class commenced operations on February 24, 2012.
(p) Includes waiver of management fee with respect to the Fund’s investment in the Pyxis Money Market Fund II.
(q) Class commenced operations on January 29, 2008.

 

See accompanying Notes to Financial Statements  |  119


Table of Contents

FINANCIAL HIGHLIGHTS

 

  

 

For Years or Periods Ended September 30 Selected data for a share outstanding throughout each period is as follows:

 

         

 

Income from Investment Operations

    Less Distributions From                       Ratios and Supplemental Data        
    

Net

Asset

Value,
Beginning

of Period

   

Net

Investment
Income

(a)

   

Net Realized
and Unrealized

Gain (Loss) on

Investments

   

Total

from
Operations

   

Net

Investment
Income

   

Net

Realized
Gains

   

Total

Distributions

   

Redemption

Fees

   

Net

Asset

Value,

End

of Period

    Total
Return(b)
   

Net Assets,

End

of Period

(000)

   

Net

Investment
Income

   

Net

Expenses

    Gross
Expenses
    Portfolio
Turnover
Rate
 

Pyxis Dividend Equity Fund

  

     

Class A

                             

2012(c)

  $ 10.00      $ 0.11      $ 2.00      $ 2.11      $ (0.15   $ —        $ (0.15   $ (d)    $ 11.96        21.16 %(e)    $ 424        1.10     2.25     4.03     6 %(e) 

Class C

                             

2012(c)

  $ 10.00      $ 0.04      $ 1.44      $ 1.48      $ (0.08   $ —        $ (0.08   $ (d)    $ 11.40        14.89 %(e)    $ 771        0.45     2.90     4.68     6 %(e) 

Class Y

                             

2012(c)

  $ 10.00      $ 0.14      $ 1.44      $ 1.58      $ (0.18   $ —        $ (0.18   $ (d)    $ 11.40        15.90 %(e)    $ 9,911        1.45     1.90     3.68     6 %(e) 
                                                                                           
         

 

Income from Investment Operations

    Less Distributions From                       Ratios and Supplemental Data        
    

Net

Asset

Value,
Beginning

of Period

   

Net

Investment
Income/
(Loss)
(a)

   

Net Realized
and Unrealized

Gain (Loss) on

Investments

   

Total

from
Operations

    Net
Investment
Income
   

Net

Realized
Gains

    Total
Distributions
    Redemption
Fees
   

Net

Asset

Value,

End of

Period

    Total
Return(b)
   

Net Assets,

End

of Period

(000)

   

Net
Investment

Income/
(Loss)

    Net
Expenses
    Gross
Expenses
    Portfolio
Turnover
Rate
 

Pyxis Premier Growth Equity Fund

  

       

Class A

                             

2012

  $ 19.39      $ 0.03      $ 6.71      $ 6.74      $      $      $      $      $ 26.13        34.76   $ 127,028        0.14     1.22     1.31     16

2011

    19.45        (— )(d)      (0.06     (0.06                                 19.39        (0.31     109,321        (0.02     1.07 (f)      1.10        23   

2010

    18.45        (0.01     1.06        1.05        (0.05            (0.05            19.45        5.69        140,095        (0.08     1.00 (f)      1.00        21   

2009

    20.84        0.06        (1.27     (1.21     (0.01     (1.17     (1.18            18.45        (3.58     149,681        0.36        1.10 (f)      1.10        27   

2008

    27.15        0.01        (3.76     (3.75     (— )(d)      (2.56     (2.56            20.84        (14.92     162,122        0.06        1.07 (f)      1.07        30   

Class B

                             

2012

  $ 16.80      $ (0.12   $ 5.78      $ 5.66      $      $      $      $      $ 22.46        33.69   $ 110        (0.61 )%      1.97     2.06     16

2011

    16.97        (0.15     (0.02     (0.17                                 16.80        (1.00     210        (0.77     1.82 (f)      1.85        23   

2010

    16.20        (0.14     0.93        0.79        (0.02            (0.02            16.97        4.88        577        (0.89     1.78 (f)      1.79        21   

2009

    18.62        (0.06     (1.19     (1.25            (1.17     (1.17            16.20        (4.29     2,474        (0.46     1.85 (f)      1.85        27   

2008

    24.71        (0.15     (3.38     (3.53     (— )(d)      (2.56     (2.56            18.62        (15.55     6,115        (0.71     1.82 (f)      1.82        30   

Class C

                             

2012

  $ 16.82      $ (0.12   $ 5.80      $ 5.68      $      $      $      $      $ 22.50        33.77   $ 10,512        (0.61 )%      1.97     2.06     16

2011

    17.00        (0.15     (0.03     (0.18                                 16.82        (1.06     10,248        (0.77     1.82 (f)      1.85        23   

2010

    16.21        (0.14     0.93        0.79                                    17.00        4.87        13,770        (0.83     1.75 (f)      1.75        21   

2009

    18.62        (0.06     (1.18     (1.24            (1.17     (1.17            16.21        (4.23     14,378        (0.41     1.85 (f)      1.85        27   

2008

    24.72        (0.15     (3.39     (3.54     (— )(d)      (2.56     (2.56            18.62        (15.59     19,630        (0.70     1.82 (f)      1.82        30   

Class R

                             

2012

  $ 19.22      $ (0.03   $ 6.65      $ 6.62      $      $      $      $      $ 25.84        34.44   $ 233        (0.11 )%      1.47     1.56     16

2011

    19.33        (0.06     (0.05     (0.11                                 19.22        (0.57     171        (0.27     1.32 (f)      1.35        23   

2010

    18.39        (0.06     1.05        0.99        (0.05            (0.05            19.33        5.40        103        (0.31     1.23 (f)      1.24        21   

2009

    20.80        0.02        (1.26     (1.24            (1.17     (1.17            18.39        (3.76     9        0.10        1.35 (f)      1.35        27   

2008(g)

    22.19        (0.02     (1.37     (1.39     (— )(d)      (— )(d)      (— )(d)             20.80        (6.26 )(e)      9        (0.16     1.35 (f)      1.35        30   

Class Y

                             

2012

  $ 19.80      $ 0.09      $ 6.85      $ 6.94      $      $      $      $      $ 26.74        35.05   $ 25,083        0.39     0.97     1.06     16

2011

    19.81        0.05        (0.06     (0.01                                 19.80        (0.05     24,705        0.23        0.82 (f)      0.85        23   

2010

    18.78        0.04        1.08        1.12        (0.09            (0.09            19.81        5.94        36,848        0.19        0.74 (f)      0.74        21   

2009

    21.25        0.11        (1.31     (1.20     (0.10     (1.17     (1.27            18.78        (3.30     22,971        0.70        0.85 (f)      0.85        27   

2008

    27.57        0.07        (3.83     (3.76     (— )(d)      (2.56     (2.56            21.25        (14.71     5,531        0.29        0.82 (f)      0.82        30   
                                                                                           
         

 

Income from Investment Operations

    Less Distributions From                       Ratios and Supplemental Data        
    

Net

Asset

Value,
Beginning

of Period

    Net
Investment
Income/
(Loss)(a)
    Net Realized
and Unrealized
Gain (Loss) on
Investments
   

Total

from
Operations

    Net
Investment
Income
   

Net

Realized
Gains

    Total
Distributions
    Redemption
Fees
   

Net

Asset

Value,

End

of Period

   

Total

Return

(b)

   

Net

Assets,

End

of Period

(000)

   

Net
Investment

Income/
(Loss)

    Net
Expenses
    Gross
Expenses
    Portfolio
Turnover
Rate
 

Pyxis Small-Cap Equity Fund

  

       

Class A

                             

2012

  $ 10.07      $ (0.10   $ 2.91      $ 2.81      $      $      $      $      $ 12.88        27.91   $ 33,698        (0.86 )%      2.00     2.00     24

2011

    9.64        (0.07     0.50        0.43                                    10.07        4.46        31,155        (0.65     1.91 (f)      1.92        71   

2010

    8.49        (0.03     1.18        1.15                                    9.64        13.55        34,798        (0.33     1.81 (f)      1.97        42   

2009

    10.73        (0.04     (1.34     (1.38            (0.86     (0.86            8.49        (10.17     32,456        (0.56     2.14 (f)      2.20        51   

2008

    16.13        (d)      (2.43     (2.43     (— )(d)      (2.97     (2.97            10.73        (17.68     42,271        0.03        1.37 (f)      1.38        60   

 

120  |  See accompanying Notes to Financial Statements


Table of Contents

FINANCIAL HIGHLIGHTS

 

  
  

 

         

 

Income from Investment Operations

    Less Distributions From                       Ratios and Supplemental Data        
    

Net

Asset

Value,
Beginning
of Period

    Net
Investment
Income/
(Loss)
(a)
    Net Realized
and Unrealized
Gain (Loss) on
Investments
    Total
from
Operations
    Net
Investment
Income
    Net
Realized
Gains
    Total
Distributions
    Redemption
Fees
    Net
Asset
Value,
End
of Period
   

Total
Return

(b)

   

Net

Assets,
End

of Period

(000)

    Net
Investment
Income/
(Loss)
    Net
Expenses
    Gross
Expenses
    Portfolio
Turnover
Rate
 

Pyxis Small-Cap Equity Fund (Continued)

  

Class B

                             

2012

    $8.64        $(0.17     $2.50        $2.33        $—        $—        $—        $—          $10.97        27.12     $154        (1.61 )%      2.75     2.75     24

2011

    8.33        (0.14     0.45        0.31                             —          8.64        3.60        216        (1.40     2.66 (f)      2.67        71   

2010

    7.39        (0.07     1.01        0.94                             —          8.33        12.72        434        (0.98     2.59 (f)      2.70        42   

2009

    9.58        (0.08     (1.25     (1.33            (0.86     (0.86     —          7.39        (10.95     1,055        (1.23     2.89 (f)      2.95        51   

2008

    14.82        (0.08     (2.19     (2.27     (— )(d)      (2.97     (2.97     —          9.58        (18.26     2,957        (0.69     2.12 (f)      2.13        60   

Class C

                             

2012

    $8.59        $(0.17     $2.49        $2.32        $—        $—        $—        $—          $10.91        26.89     $2,947        (1.61 )%      2.75     2.75     24

2011

    8.29        (0.14     0.44        0.30                             —          8.59        3.62        2,587        (1.40     2.66 (f)      2.67        71   

2010

    7.35        (0.08     1.02        0.94                             —          8.29        12.79        2,832        (1.08     2.56 (f)      2.71        42   

2009

    9.53        (0.08     (1.24     (1.32            (0.86     (0.86     —          7.35        (10.90     2,839        (1.30     2.89 (f)      2.95        51   

2008

    14.76        (0.08     (2.18     (2.26     (— )(d)      (2.97     (2.97     —          9.53        (18.28     4,797        (0.72     2.12 (f)      2.14        60   

Class R

                             

2012

    $9.99        $(0.13     $2.93        $2.80        $—        $—        $—        $—          $12.79        27.93     $1        (1.11 )%      2.25     2.25     24

2011

    9.58        (0.10     0.51        0.41                             —          9.99        4.28        1        (0.90     2.16 (f)      2.17        71   

2010

    8.46        (0.05     1.17        1.12                             —          9.58        13.24        9        (0.55     2.03 (f)      2.19        42   

2009

    10.72        (0.06     (1.34     (1.40            (0.86     (0.86     —          8.46        (10.37     8        (0.84     2.39 (f)      2.45        51   

2008(g)

    11.58        (0.03     (0.83     (0.86     (— )(d)      (—     (— )(d)      —          10.72        (7.43 )(e)      9        (0.34     1.62 (f)      1.63        60   

Class Y

                             

2012

    $10.51        $(0.08     $3.05        $2.97        $—        $—        $—        $—          $13.48        28.26     $460        (0.61 )%      1.75     1.75     24

2011

    10.04        (0.05     0.52        0.47                             —          10.51        4.68        209        (0.40     1.66 (f)      1.67        71   

2010

    8.82        —          1.22        1.22                             —          10.04        13.83        198        (0.04     1.58 (f)      1.72        42   

2009

    11.06        (0.01     (1.37     (1.38            (0.86     (0.86     —          8.82        (9.83     1,035        (0.18     1.89 (f)      1.95        51   

2008

    16.50        0.04        (2.51     (2.47     (— )(d)      (2.97     (2.97     —          11.06        (17.50     3,694        0.36        1.12 (f)      1.12        60   

 

         

 

Income from Investment  Operations

    Less Distribution From                       Ratios and Supplemental Data        
    

Net

Asset
Value,
Beginning

of Period

    Net
Investment
Income/
(Loss)
(a)
    Net Realized
and Unrealized
Gain (Loss) on
Investments
   

Total

from
Operations

    Net
Investment
Income
    Net
Realized
Gains
    Total
Distributions
    Redemption
Fees
   

Net
Asset
Value,
End

of Period

   

Total

Return

(b)

   

Net Assets,
End

of Period

(000)

    Net
Investment
Income/
(Loss)
    Net
Expenses
    Gross
Expenses
    Portfolio
Turnover
Rate
 

Pyxis Global Equity Fund

  

                       

Class A

                             

2012

    $16.90        $ —   (d)      $3.37        $3.37        $—          $—          $—          $—          $20.27        19.94     $23,349        0.01     1.88     2.24     94

2011

    19.18        0.01        (2.26     (2.25     (0.03     —          (0.03     —          16.90        (11.75     22,813        0.03        1.53 (f)      1.72        64   

2010

    18.26        0.04        1.08        1.12        (0.20     —          (0.20     —          19.18        6.14        29,589        0.19        1.27 (f)      1.28        68   

2009

    21.26        0.17        (2.15     (1.98     (0.31     (0.71     (1.02     —          18.26        (8.00     30,544        1.12        1.70 (f)      1.70        60   

2008

    32.08        0.28        (7.54     (7.26     (0.12     (3.44     (3.56     —          21.26        (25.19     36,560        1.04        1.41 (f)      1.41        57   

Class B

                             

2012

    $15.12        $(0.13     $3.02        $2.89        $—          $—          $—          $—          $18.01        19.12     $4        (0.74 )%      2.63     2.99     94

2011

    17.25        (0.13     (2.00     (2.13     —          —          —          —          15.12        (12.35     20        (0.72     2.28 (f)      2.47        64   

2010

    16.57        (0.11     1.00        0.89        (0.21     —          (0.21     —          17.25        5.37        47        (0.67     2.09 (f)      2.09        68   

2009

    19.25        —          (1.89     (1.89     (0.08     (0.71     (0.79     —          16.57        (8.72     86        0.05        2.45 (f)      2.45        60   

2008

    29.48        0.06        (6.85     (6.79     —   (d)      (3.44     (3.44     —          19.25        (25.79     222        0.24        2.16 (f)      2.16        57   

 

(a) Net investment income per share is based on average shares outstanding during the period.
(b) Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the adviser not absorbed a portion of expenses, total returns would have been lower.
(c) Class A commenced operations on November 23, 2011, Class C commenced operations on November 15, 2011 and Class Y commenced operations on November 14, 2011.
(d) Less than $0.005 per share or less than 0.005%.
(f) Includes waiver of management fee with respect to the Fund’s investment in the Pyxis Money Market Fund II.
(g) Class commenced operations on January 29, 2008.

 

See accompanying Notes to Financial Statements.  |  121


Table of Contents

FINANCIAL HIGHLIGHTS

 

  
  

 

For Years or Periods Ended September 30 Selected data for a share outstanding throughout each period is as follows:

 

          Income from Investment Operations     Less Distributions From                       Ratios and Supplemental Data        
    

Net

Asset
Value,
Beginning
of Period

    Net
Investment
Income/
(Loss)
(a)
    Net Realized
and Unrealized
Gain (Loss) on
Investments
   

Total

from
Operations

    Net
Investment
Income
    Net
Realized
Gains
    Total
Distributions
    Redemption
Fees
    Net
Asset
Value,
End
of Period
    Total
Return(b)
    Net
Assets,
End
of Period
(000)
    Net
Investment
Income/(Loss
)
    Net
Expenses
    Gross
Expenses
    Portfolio
Turnover
Rate
 

Pyxis Global Equity Fund (Continued)

  

                       

Class C

                             

2012

  $ 15.30      $ (0.13   $ 3.04      $ 2.91      $      $      $      $      $ 18.21        19.02   $ 126        (0.74 )%      2.63     2.99     94

2011

    17.45        (0.13     (2.02     (2.15                                 15.30        (12.32     90        (0.72     2.28 (c)      2.47        64   

2010

    16.58        (0.09     0.98        0.89        (0.02            (0.02            17.45        5.39        127        (0.58     2.02 (c)      2.03        68   

2009

    19.38        0.01        (1.93     (1.92     (0.17     (0.71     (0.88            16.58        (8.74     195        0.05        2.45 (c)      2.45        60   

2008

    29.66        0.10        (6.93     (6.83     (0.01     (3.44     (3.45            19.38        (25.78     489        0.39        2.16 (c)      2.16        57   

Class R

                             

2012

  $ 16.93      $ (0.05   $ 3.41      $ 3.36      $      $      $      $      $ 20.29        19.85   $ 1        (0.24 )%      2.13     2.49     94

2011

    19.16        (0.04     (2.19     (2.23                                 16.93        (11.64     1        (0.22     1.78 (c)      1.97        64   

2010

    18.22        (0.01     1.08        1.07        (0.13            (0.13            19.16        5.88        8        (0.05     1.52 (c)      1.52        68   

2009

    21.21        0.14        (2.15     (2.01     (0.27     (0.71     (0.98            18.22        (8.24     7        0.92        1.95 (c)      1.95        60   

2008(d)

    25.98        0.28        (5.05     (4.77     (— )(e)      (— )(e)      (— )(e)             21.21        (18.36 )(f)      8        1.65        1.66 (c)      1.66        57   

Class Y

                             

2012

  $ 17.07      $ 0.05      $ 3.29      $ 3.34      $      $      $      $      $ 20.41        19.57   $ (g)      0.26     1.63     1.99     94

2011

    19.26        0.06        (2.17     (2.11     (0.08            (0.08            17.07        (11.02     (g)      0.28        1.28 (c)      1.47        64   

2010

    18.32        0.08        1.09        1.17        (0.23            (0.23            19.26        6.42        15,722        0.45        1.01 (c)      1.02        68   

2009

    21.35        0.21        (2.16     (1.95     (0.37     (0.71     (1.08            18.32        (7.73     15,435        1.38        1.45 (c)      1.45        60   

2008

    32.23        0.35        (7.59     (7.24     (0.20     (3.44     (3.64            21.35        (25.07     18,339        1.28        1.16 (c)      1.16        57   

 

          Income from Investment Operations     Less Distributions From                       Ratios and Supplemental Data        
    

Net

Asset
Value,
Beginning
of Period

    Net
Investment
Income/
(Loss)
(a)
    Net Realized
and Unrealized
Gain (Loss) on
Investments
    Total
from

Operations
    Net
Investment
Income
    Net
Realized
Gains
    Total
Distributions
    Redemption
Fees
    Net
Asset
Value,
End
of Period
    Total
Return(b)
    Net Assets,
End
of Period
(000)
    Net
Investment
Income/(Loss)
    Net
Expenses
    Gross
Expenses
    Portfolio
Turnover
Rate
 

Pyxis International Equity Fund

  

                       

Class A

                             

2012

  $ 10.47      $ 0.02      $ 1.63      $ 1.65      $ (0.13   $      $ (0.13   $      $ 11.99        16.37   $ 11,322        0.20     2.46     3.57     48

2011

    12.48        0.08        (1.97     (1.89     (0.12            (0.12            10.47        (15.67     12,057        0.59        1.68 (c)      1.68        41   

2010

    12.71        0.12        0.02        0.14        (0.37            (0.37            12.48        1.12        24,762        1.04        1.94 (c)      2.04        44   

2009

    16.20        0.23        (1.47     (1.24     (0.39     (1.86     (2.25            12.71        (3.55     33,160        2.17        1.53 (c)      1.77        60   

2008

    25.05        0.43        (6.59     (6.16     (0.23     (2.46     (2.69            16.20        (27.35     48,250        2.02        1.37 (c)      1.51        39   

Class B

                             

2012

  $ 9.53      $ (0.06   $ 1.50      $ 1.44      $      $      $      $      $ 10.97        15.49   $ 15        (0.55 )%      3.21     4.32     48

2011

    11.34        (0.02     (1.79     (1.81                                 9.53        (16.31     49        (0.15     2.43 (c)      2.43        41   

2010

    11.65        0.03        0.01        0.04        (0.35            (0.35            11.34        0.34        126        0.28        2.67 (c)      2.72        44   

2009

    14.97        0.13        (1.37     (1.24     (0.22     (1.86     (2.08            11.65        (4.28     399        1.27        2.28 (c)      2.52        60   

2008

    23.29        0.19        (6.03     (5.84     (0.02     (2.46     (2.48            14.97        (27.86     651        0.95        2.12 (c)      2.25        39   

Class C

                             

2012

  $ 9.54      $ (0.06   $ 1.50      $ 1.44      $ (0.07   $      $ (0.07   $      $ 10.91        15.66   $ 666        (0.55 )%      3.21     4.32     48

2011

    11.40        (0.02     (1.80     (1.82     (0.04            (0.04            9.54        (16.40     859        (0.15     2.43 (c)      2.43        41   

2010

    11.62        0.04        0.03        0.07        (0.29            (0.29            11.40        0.61        1,208        0.39        2.70 (c)      2.80        44   

2009

    15.04        0.14        (1.40     (1.26     (0.30     (1.86     (2.16            11.62        (4.29     1,194        1.41        2.28 (c)      2.52        60   

2008

    23.44        0.22        (6.09     (5.87     (0.07     (2.46     (2.53            15.04        (27.86     1,462        1.10        2.12 (c)      2.27        39   

Class R

                             

2012

  $ 10.46      $ (e)    $ 1.65      $ 1.65      $ (0.05   $      $ (0.05   $      $ 12.06        16.24   $ 1        (0.05 )%      2.71     3.82     48

2011

    12.46        0.05        (1.96     (1.91     (0.09            (0.09            10.46        (15.80     1        0.35        1.93 (c)      1.93        41   

2010

    12.68        0.10        0.02        0.12        (0.34            (0.34            12.46        0.82        8        0.82        2.19 (c)      2.30        44   

2009

    16.17        0.21        (1.47     (1.26     (0.37     (1.86     (2.23            12.68        (3.75     8        2.00        1.78 (c)      2.02        60   

2008(d)

    20.63        0.38        (4.84     (4.46     (— )(e)             (— )(e)             16.17        (21.62 )(f)      8        2.79        1.62 (c)      1.77        39   

Class Y

                             

2012

  $ 10.62      $ 0.05      $ 1.65      $ 1.70      $ (0.16   $      $ (0.16   $      $ 12.16        16.76   $ 593        0.45     2.21     3.32     48

2011

    12.65        0.11        (1.99     (1.88     (0.15            (0.15            10.62        (15.49     453        0.84        1.43 (c)      1.43        41   

2010

    12.88        0.15        0.02        0.17        (0.40            (0.40            12.65        1.34        4,849        1.27        1.69 (c)      1.78        44   

2009

    16.40        0.34        (1.56     (1.22     (0.44     (1.86     (2.30            12.88        (3.27     8,220        3.10        1.38 (c)      1.52        60   

2008

    25.33        0.46        (6.64     (6.18     (0.29     (2.46     (2.75            16.40        (27.19     8,872        2.13        1.12 (c)      1.26        39   

 

122  |  See accompanying Notes to Financial Statements.


Table of Contents

FINANCIAL HIGHLIGHTS

 

  

 

                            Less Distributions From                                            
    

Net

Asset

Value,

Beginning

of Period

   

Net

Investment

Income(a)

   

Net Realized

and Unrealized

Gain (Loss) on
Investments

   

Total

from

Operations

   

Net

Investment

Income

    Net
Realized
Gains
   

Total

Distributions

   

Net

Asset

Value,

End

of Period

   

Total

Return(b)

   

Net Assets,

End

of Period

(000)

   

Net

Investment

Income

   

Net

Expenses

   

Gross

Expenses

   

Portfolio

Turnover

Rate

 

Pyxis Total Return Fund

  

Class A

                           

2012

    $18.03        $0.19        $2.87        $3.06        $(0.24     $—        $(0.24     $20.85        17.01     $75,216        0.97     1.60     1.82     169

2011

    18.80        0.21        (0.87     (0.66     (0.11            (0.11     18.03        (3.51     79,574        1.07        1.42 (c)      1.46        177   

2010

    17.90        0.17        0.99        1.16        (0.26            (0.26     18.80        6.51        104,835        0.92        1.15 (c)      1.26        137   

2009

    20.16        0.26        (1.08     (0.82     (0.39     (1.05     (1.44     17.90        (2.60     105,256        1.66        1.08 (c)      1.13        144   

2008

    27.03        0.40        (4.54     (4.14     (0.44     (2.29     (2.73     20.16        (16.87     116,282        1.68        0.90 (c)      0.90        156   

Class B

                           

2012

    $17.30        $0.04        $2.77        $2.81        $—        $—        $—        $20.11        16.12     $139        0.22     2.35     2.57     169

2011

    18.07        0.06        (0.83     (0.77                          17.30        (4.21     349        0.32        2.17 (c)      2.21        177   

2010

    17.23        0.02        0.96        0.98        (0.14            (0.14     18.07        5.73        1,077        0.14        1.90 (c)      1.97        137   

2009

    19.36        0.14        (1.03     (0.89     (0.19     (1.05     (1.24     17.23        (3.37     4,772        0.91        1.83 (c)      1.88        144   

2008

    26.02        0.21        (4.36     (4.15     (0.22     (2.29     (2.51     19.36        (17.47     8,222        0.91        1.65 (c)      1.66        156   

Class C

                           

2012

    $16.63        $0.04        $2.65        $2.69        $(0.07     $—        $(0.07     $19.25        16.17     $6,965        0.22     2.35     2.57     169

2011

    17.37        0.06        (0.80     (0.74                          16.63        (4.20     8,183        0.32        2.17 (c)      2.21        177   

2010

    16.59        0.03        0.91        0.94        (0.16            (0.16     17.37        5.71        11,714        0.19        1.90 (c)      2.01        137   

2009

    18.76        0.13        (1.01     (0.88     (0.24     (1.05     (1.29     16.59        (3.33     10,841        0.90        1.83 (c)      1.88        144   

2008

    25.36        0.21        (4.24     (4.03     (0.28     (2.29     (2.57     18.76        (17.48     13,674        0.93        1.65 (c)      1.66        156   

Class R

                           

2012

    $18.02        $0.14        $2.88        $3.02        $(0.10     $—        $(0.10     $20.94        16.68     $1        0.72     1.85     2.07     169

2011

    18.79        0.16        (0.86     (0.70     (0.07            (0.07     18.02        (3.70     1        0.82        1.67 (c)      1.71        177   

2010

    17.87        0.12        0.99        1.11        (0.19            (0.19     18.79        6.25        9        0.66        1.41 (c)      1.52        137   

2009

    20.13        0.23        (1.09     (0.86     (0.35     (1.05     (1.40     17.87        (2.88     9        1.40        1.33 (c)      1.38        144   

2008(d)

    22.72        0.25        (2.84     (2.59     (— )(e)      (— )(e)      (— )(e)      20.13        (11.40 )(f)      9        1.67        1.15 (c)      1.15        156   

Class Y

                           

2012

    $18.24        $0.24        $2.90        $3.14        $(0.29     $—        $(0.29     $21.09        17.36     $217        1.22     1.35     1.57     169

2011

    19.03        0.27        (0.89     (0.62     (0.17            (0.17     18.24        (3.36     238        1.32        1.17 (c)      1.21        177   

2010

    18.10        0.21        1.01        1.22        (0.29            (0.29     19.03        6.81        5,070        1.16        0.90 (c)      1.00        137   

2009

    20.39        0.31        (1.10     (0.79     (0.45     (1.05     (1.50     18.10        (2.39     7,788        1.90        0.83 (c)      0.88        144   

2008

    27.31        0.47        (4.59     (4.12     (0.51     (2.29     (2.80     20.39        (16.65     5,571        1.96        0.65 (c)      0.65        156   

 

          Income from Investment Operations     Less Distributions From                       Ratios and Supplemental Data        
    

Net

Asset

Value,

Beginning

of Period

   

Net

Investment

Income(a)

   

Net Realized

and Unrealized

Gain (Loss) on
Investments

   

Total

from

Operations

   

Net

Investment

Income

    Net
Realized
Gains
   

Total

Distributions

   

Redemption

Fees

   

Net

Asset

Value,

End

of Period

   

Total

Return(b)

   

Net Assets,

End

of Period

(000)

   

Net

Investment

Income

   

Net

Expenses

   

Gross

Expenses

   

Portfolio

Turnover

Rate

 

Pyxis Tax-Exempt Fund

  

       

Class A

                             

2012

    $11.86        $0.32        $0.48        $0.80        $(0.32     $—        $(0.32     $—        $12.34        6.79     $33,747        2.62     1.14     1.18     26

2011

    11.97        0.34        (0.11     0.23        (0.34            (0.34            11.86        2.06        36,024        2.97        1.15 (c)      1.18        40   

2010

    11.79        0.41        0.18        0.59        (0.41            (0.41            11.97        5.14        40,049        3.49        0.86 (c)      0.63        28   

2009

    10.90        0.41        0.88        1.29        (0.40            (0.40            11.79        12.09        36,260        3.58        0.86 (c)      1.14        24   

2008

    11.41        0.43        (0.52     (0.09     (0.42     (— )(e)      (0.42            10.90        (0.84     30,972        3.72        0.87 (c)      1.12        28   

Class B

                             

2012

    $11.86        $0.23        $0.48        $0.71        $(0.24     $—        $(0.24     $—        $12.33        6.01     $2        1.87     1.89     1.93     26

2011

    11.96        0.26        (0.10     0.16        (0.26            (0.26            11.86        1.42        5        2.22        1.90 (c)      1.93        40   

2010

    11.79        0.31        0.18        0.49        (0.32            (0.32            11.96        4.27        22        2.80        1.61 (c)      1.57        28   

2009

    10.89        0.32        0.90        1.22        (0.32            (0.32            11.79        11.36        86        2.86        1.61 (c)      1.89        24   

2008

    11.41        0.33        (0.51     (0.18     (0.34     (— )(e)      (0.34            10.89        (1.67     158        2.99        1.62 (c)      1.89        28   

 

(a) Net investment income per share is based on average shares outstanding during the period.
(b) Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the adviser not absorbed a portion of expenses, total returns would have been lower.
(c) Includes waiver of management fee with respect to the Fund’s investment in the Pyxis Money Market Fund II.
(d) Class commenced operations on January 29, 2008.
(e) Less than $0.005 per share or less than 0.005%.
(f) Not annualized.
(g) Less than $1,000 of asset in share class.

 

See accompanying Notes to Financial Statements.  |  123


Table of Contents

FINANCIAL HIGHLIGHTS

 

  

 

For Years or Periods Ended September 30

Selected data for a share outstanding throughout each period is as follows:

 

         

 

Income from Investment  Operations

   

 

Less Distributions From

                     

 

Ratios and Supplemental Data

       
    

Net

Asset

Value,

Beginning

of Period

   

Net

Investment

Income(a)

   

Net Realized

and Unrealized

Gain (Loss) on

Investments

   

Total

from

Operations

   

Net

Investment

Income

    Net
Realized
Gains
   

Total

Distributions

   

Redemption

Fees

   

Net

Asset

Value,

End of Period

   

Total

Return(b)

   

Net

Assets,

End of Period

(000)

   

Net

Investment

Income

   

Net

Expenses

   

Gross

Expenses

   

Portfolio

Turnover

Rate

 

Pyxis Tax-Exempt Fund (Continued)

  

Class C

                             

2012

    $11.86        $0.23        $0.47        $0.70        $(0.23     $—        $(0.23     $—        $12.33        5.93     $1,728        1.87     1.89     1.93     26

2011

    11.96        0.26        (0.10     0.16        (0.26            (0.26            11.86        1.39        1,675        2.22        1.90 (c)      1.93        40   

2010

    11.78        0.33        0.17        0.50        (0.32            (0.32            11.96        4.33        2,699        2.68        1.60 (c)      1.24        28   

2009

    10.89        0.31        0.90        1.21        (0.32            (0.32            11.78        11.24        945        2.72        1.61 (c)      1.89        24   

2008

    11.41        0.34        (0.52     (0.18     (0.34     (— )(d)      (0.34            10.89        (1.68     208        2.96        1.62 (c)      1.88        28   

Class Y

                             

2012

    $12.83        $0.37        $0.51        $0.88        $(0.37     $—        $(0.37     $—        $13.34        6.97     $180        2.87     0.89     0.93     26

2011

    12.93        0.40        (0.11     0.29        (0.39            (0.39            12.83        2.39        179        3.22        0.90 (c)      0.93        40   

2010

    12.74        0.48        0.19        0.67        (0.48            (0.48            12.93        5.36        700        3.73        0.61 (c)      0.30        28   

2009

    11.78        0.45        0.97        1.42        (0.46            (0.46            12.74        12.34        507        3.63        0.61 (c)      0.71        24   

2008

    12.34        0.49        (0.56     (0.07     (0.49     (— )(d)      (0.49            11.78        (0.65     36        3.99        0.62 (c)      0.86        28   

 

         

 

Income from Investment  Operations

   

 

Less Distributions From

                     

 

Ratios and Supplemental Data

       
    

Net

Asset

Value,

Beginning

of Period

   

Net

Investment

Income(a)

   

Net Realized

and Unrealized

Gain (Loss) on

Investments

   

Total

from

Operations

   

Net

Investment

Income

    Net
Realized
Gains
    Return
Of
Capital
   

Total

Distributions

   

Redemption

Fees

   

Net

Asset

Value,

End of Period

   

Total

Return(b)

   

Net

Assets,

End of Period

(000)

   

Net

Investment

Income

   

Net

Expenses

   

Gross

Expenses

   

Portfolio

Turnover

Rate

 

Pyxis Fixed Income Fund

  

Class A

                               

2012

    $12.54        $0.20        $0.59        $0.79        $(0.27     $—        $(0.02     $(0.29     $—        $13.04        6.35     $202,060        1.59     1.13     1.14     350

2011

    12.26        0.37        0.31        0.68        (0.40                   (0.40            12.54        5.78        94,079        2.97        0.90 (c)      0.91        392   

2010

    11.71        0.36        0.63        0.99        (0.44                   (0.44            12.26        8.65        98,741        3.02        0.91 (c)      0.99        342   

2009

    11.44        0.44        0.26        0.70        (0.43                   (0.43            11.71        6.36        103,525        3.90        0.85 (c)      0.88        341   

2008

    11.84        0.50        (0.40     0.10        (0.50     (— )(d)             (0.50            11.44        0.73        115,933        4.19        0.84 (c)      0.85        467   

Class B

                               

2012

    $12.54        $0.11        $0.58        $0.69        $(0.17     $—        $(0.02     $(0.19     $—        $13.04        5.49     $120        0.84     1.88     1.89     350

2011

    12.26        0.27        0.32        0.59        (0.31                   (0.31            12.54        5.00        85        2.22        1.65 (c)      1.66        392   

2010

    11.71        0.31        0.59        0.90        (0.35                   (0.35            12.26        7.84        131        2.69        1.67 (c)      1.72        342   

2009

    11.44        0.35        0.27        0.62        (0.35                   (0.35            11.71        5.57        375        3.21        1.60 (c)      1.63        341   

2008

    11.84        0.41        (0.40     0.01        (0.41     (— )(d)             (0.41            11.44        (0.11     803        3.50        1.59 (c)      1.60        467   

Class C

                               

2012

    $12.56        $0.10        $0.59        $0.69        $(0.17     $—        $(0.02     $(0.19     $—        $13.06        5.48     $5,051        0.84     1.88     1.89     350

2011

    12.27        0.27        0.33        0.60        (0.31                   (0.31            12.56        4.99        846        2.22        1.65 (c)      1.66        392   

2010

    11.72        0.27        0.63        0.90        (0.35                   (0.35            12.27        7.93        933        2.25        1.66 (c)      1.74        342   

2009

    11.46        0.35        0.26        0.61        (0.35                   (0.35            11.72        5.47        915        3.12        1.60 (c)      1.63        341   

2008

    11.86        0.41        (0.40     0.01        (0.41     (— )(d)             (0.41            11.46        (0.02     922        3.44        1.59 (c)      1.60        467   

Class R

                               

2012

    $12.55        $0.16        $0.59        $0.75        $(0.23     $—        $(0.02     $(0.25     $—        $13.05        6.05     $2        1.34     1.38     1.39     350

2011

    12.26        0.33        0.34        0.67        (0.38                   (0.38            12.55        5.60        1        2.72        1.15 (c)      1.16        392   

2010

    11.71        0.33        0.63        0.96        (0.41                   (0.41            12.26        8.37        11        2.73        1.17 (c)      1.25        342   

2009

    11.45        0.41        0.25        0.66        (0.40                   (0.40            11.71        5.99        10        3.61        1.10 (c)      1.13        341   

2008(e)

    12.15        0.29        (0.70     (0.41     (0.29     (— )(d)             (0.29            11.45        (3.43 )(f)      10        3.70        1.09 (c)      1.11        467   

Class Y

                               

2012

    $12.52        $0.23        $0.60        $0.83        $(0.29     $—        $(0.03     $(0.32     $—        $13.03        6.62     $1,571        1.84     0.88     0.89     350

2011

    12.24        0.40        0.31        0.71        (0.43                   (0.43            12.52        6.04        1,072        3.22        0.65 (c)      0.66        392   

2010

    11.70        0.33        0.68        1.01        (0.47                   (0.47            12.24        8.81        2,686        3.36        0.67 (c)      0.75        342   

2009

    11.43        0.46        0.27        0.73        (0.46                   (0.46            11.70        6.63        8,545        4.15        0.60 (c)      0.63        341   

2008

    11.84        0.53        (0.41     0.12        (0.53     (— )(d)             (0.53            11.43        0.89        12,944        4.45        0.59 (c)      0.60        467   

 

124  |  See accompanying Notes to Financial Statements.


Table of Contents

FINANCIAL HIGHLIGHTS

 

  
  

 

         

 

Income from Investment  Operations

       

 

Less Distributions From

                     

 

Ratios and Supplemental Data

 
    

 

Net

Asset
Value,
Beginning
of Period

    Net
Investment
Income(a)
    Net Realized
and Unrealized
Gain (Loss) on
Investments
   

Total

from
Operations

         Net
Investment
Income
    Net
Realized
Gains
    Total
Distributions
    Redemption
Fees
    Net
Asset
Value,
End
of Period
    Total
Return(b)
    Net
Assets,
End
of Period
(000)
    Net
Investment
Income
    Net
Expenses
    Gross
Expenses
 

Pyxis Money Market Fund II

  

Retail Class

                             

2012

  $ 1.00      $      $      $        $      $ (— )(d)    $ (— )(d)    $      $ 1.00        0.01   $ 59,779        %(d)      0.18     0.68

2011

    1.00        (d)      (d)      (d)        (— )(d)      (— )(d)      (— )(d)             1.00        0.00        74,278        (d)      0.26        0.37   

2010

    1.00        (d)      (d)      (d)        (— )(d)             (— )(d)             1.00        0.00        116,230        (d)      0.29        0.43   

2009

    1.00        0.01               0.01          (0.01            (0.01            1.00        0.66        164,512        0.69        0.37        0.37   

2008

    1.00        0.03               0.03          (0.03            (0.03            1.00        3.05        203,595        3.07        0.41        0.41   

Institutional Class

                             

2012

  $ 1.00      $      $      $        $      $ (— )(d)    $ (— )(d)    $      $ 1.00        0.01   $ 15,523        %(d)      0.18     0.68

2011

    1.00        (d)      (d)      (d)        (— )(d)      (— )(d)      (— )(d)             1.00               8,534        (d)      0.26        0.37   

2010

    1.00        (d)      (d)      (d)        (— )(d)             (— )(d)             1.00        0.03        857,097        0.03        0.26        0.33   

2009

    1.00        0.01               0.01          (0.01            (0.01            1.00        0.75        895,432        0.72        0.29        0.29   

2008(e)

    1.00        0.01               0.01          (0.01            (0.01            1.00        1.10        682,828        2.04        0.29        0.29   

 

(a) Net investment income per share is based on average shares outstanding during the period.
(b) Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the adviser not absorbed a portion of expenses, total returns would have been lower.
(c) Includes waiver of management fee with respect to the Fund’s investment in the Pyxis Money Market Fund II.
(d) Less than $0.005 per share or less than 0.005%.
(e) Class commenced operations on January 29, 2008.
(f) Not annualized.

 

See accompanying Notes to Financial Statements.   |  125


Table of Contents

NOTES TO FINANCIAL STATEMENTS

 

  
September 30, 2012   

Pyxis Funds II

 

Note 1. Organization

Pyxis Funds II (formerly known as Highland Funds II) (the “Trust”) is a Massachusetts business trust organized on August 10, 1992. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. It comprises seventeen portfolios (each a “Fund” and collectively the “Funds”), although only the following thirteen are currently being offered: Pyxis Alpha Trend Strategies Fund (the “Alpha Trend Strategies Fund”), Pyxis Alternative Income Fund (the “Alternative Income Fund”), Pyxis Trend Following Fund (the “Trend Following Fund”), Pyxis Core America Equity Fund (formerly Highland Core Value Equity Fund) (the “Core America Equity Fund”), Pyxis Dividend Equity Fund (the “Dividend Equity Fund”), Pyxis Premier Growth Equity Fund (the “Premier Growth Equity Fund”), Pyxis Small-Cap Equity Fund (the “Small-Cap Equity Fund”), Pyxis Global Equity Fund (the “Global Equity Fund”), Pyxis International Equity Fund (the “International Equity Fund”), Pyxis Total Return Fund (the “Total Return Fund”), Pyxis Tax-Exempt Fund (the “Tax-Exempt Fund”), Pyxis Fixed Income Fund (the “Fixed Income Fund”) and Pyxis Money Market Fund II (the “Money Market Fund”). As of September 30, 2012, the Pyxis Energy and Materials Fund (the “Energy and Materials Fund”) is not being offered.

Fund Shares

Each Fund is authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share (each a “Share” and collectively, the “Shares”). Each Fund (other than the Trend Following Fund, Dividend Equity Fund, Tax-Exempt Fund and the Money Market Fund) currently offers four share classes to investors, namely Class A, Class C, Class R and Class Y Shares. The Trend Following Fund and the Dividend Equity Fund currently offers four share classes to investors but have only sold two and three, respectively, namely Class A and Class C Shares and Class A, Class C and Class Y shares, respectively. The Tax-Exempt Fund currently offers three share classes to investors, namely Class A, Class C and Class Y Shares, and the Money Market Fund currently offers two share classes to investors, namely the Retail Class and the Institutional Class Shares. As of January 29, 2007, Class B Shares were closed to new investments for all Funds that offered Class B Shares.

Class A Shares are sold with a front-end sales charge. Maximum sales load imposed on purchases of Class A Shares (as a percentage of offering price) is as follows:

 

                         Fund    %  

Alpha Trend Strategies Fund

     5.75   

Alternative Income Fund

     5.75   

Energy and Materials Fund

     5.75   

Trend Following Fund

     5.75   

Core America Equity Fund

     5.75   

Dividend Equity Fund

     5.75   

Premier Growth Equity Fund

     5.75   

Small-Cap Equity Fund

     5.75   

Global Equity Fund

     5.75   

International Equity Fund

     5.75   

Total Return Fund

     5.75   

 

                         Fund    %  

Tax-Exempt Fund

     4.25   

Fixed Income Fund

     4.25   

There is no front-end sales charge imposed on individual purchases of Class A Shares of $1 million or more. The front-end sales charge is also waived in other instances as described in the Funds’ prospectuses. Purchases of $1 million or more of Class A Shares at net asset value are subject to a 1.00% contingent deferred sales charge (“CDSC”) if redeemed within one year of purchase.

Class B and Class C Shares may be subject to a CDSC. Maximum CDSC imposed on redemptions of Class B Shares (as a percentage of redemption proceeds) within the first year are as follows:

 

                         Fund    %  

Core America Equity Fund

     4.00   

Premier Growth Equity Fund

     4.00   

Small-Cap Equity Fund

     4.00   

Global Equity Fund

     4.00   

International Equity Fund

     4.00   

Total Return Fund

     4.00   

Tax-Exempt Fund

     3.00   

Fixed Income Fund

     3.00   

The CDSC for redemptions of Funds that offer Class B Shares are as follows: within the second year: 3.00%; within the third year: 2.00%; within the fourth year: 1.00% and within the fifth year and thereafter: 0.00%.

The maximum CDSC imposed on redemptions of Class C Shares for all Funds is 1.00% within the first year of purchase and 0.00% thereafter.

No front-end or CDSC are assessed by the Trust with respect to the Retail Class and Institutional Class Shares of the Money Market Fund or Class R and Class Y Shares of all Funds.

Capital Contribution

On January 25, 2011, GE Asset Management Incorporated (“GEAM”), the former investment adviser (now the Sub-Adviser), contributed $2,845 of capital to the Global Equity Fund to mitigate the negative impact to Class Y Shareholders from a large redemption.

On May 5, 2011, BNY Mellon contributed $344 of capital to the Total Return Fund to mitigate the negative impact to Shareholders from an incorrect calculation of net asset value.

Note 2. Significant Accounting Policies

The following summarizes the significant accounting policies consistently followed by the Funds in the preparation of their financial statements.

Offering Costs

Certain costs were incurred in connection with the offering of the following Funds as disclosed in the table below. The costs

 

 

126  |  Annual Report


Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

associated have been capitalized and are being amortized on a straight-line basis over twelve months based on the commencement date of the Funds, stated below.

 

 Fund   Commencement Date   Original Offering Costs  

Alpha Trend Strategies Fund

  November 01, 2011     $100,733             

Alternative Income Fund

  January 13, 2012     56,705             

Energy and Materials Fund

  December 01, 2011     94,126             

Dividend Equity Fund

  November 14, 2011     109,695             

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions 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 revenue and expenses during the reporting period. Actual results may differ from those estimates.

Securities Valuation

The Funds utilize various methods to measure the fair value of most of its investments on a recurring basis. GAAP establishes a framework for measuring fair value and providing related disclosures. Broadly, the framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. It also establishes a three-level valuation hierarchy based upon observable and non-observable inputs.

Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:

Level 1 - Quoted prices for identical investments in active markets.

Level 2 - Quoted prices for similar investments in active markets; quoted prices for identical or similar investments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 - Significant inputs to the valuation model are unobservable.

Policies and procedures are maintained to value investments using the best and most relevant data available. In addition, pricing vendors are utilized to assist in valuing investments. Pyxis Capital, L.P., (formerly known as Highland Funds Asset Management, L.P.) (the “Investment Adviser” or “Pyxis”) per-

forms periodic reviews of the methodologies used by independent pricing services including price validation of individual securities.

Fair Value Measurement

The following section describes the valuation methodologies the Funds use to measure different financial investments at fair value.

A Fund’s portfolio securities are valued generally on the basis of market quotations. Equity securities generally are valued at the last reported sales price on the primary market in which they are traded. Portfolio securities listed on NASDAQ are valued using the NASDAQ Official Closing Price, Level 1 securities primarily include publicly-traded equity securities which may not necessarily represent the last sale price. If no sales occurred on the exchange or NASDAQ that day, the portfolio security will be valued at the mean between the most recently quoted bid and asked prices produced by the principal market makers. In those circumstances the Fund classifies the investment securities in Level 2.

Debt securities (other than short-term securities described below) generally are valued at an evaluated bid as reported by an independent pricing service. Municipal obligations are valued at the quoted bid prices when available. The pricing vendor uses various pricing models for each asset class that are consistent with what other market participants would use. The inputs and assumptions to the model of the pricing vendor are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and other market related data. Since many fixed income securities do not trade on a daily basis, the methodology of the pricing vendor uses available information as applicable such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. The pricing vendor considers all available market observable inputs in determining the evaluation for a security. Thus, certain securities may not be priced using quoted prices, but rather determined from market observable information. These investments are included in Level 2 and primarily comprise our portfolio of corporate fixed income, government, mortgage and asset-backed securities.

In the absence of a reliable price from such a pricing service, debt securities may be valued based on dealer supplied valuations or quotations. In these infrequent circumstances, pricing vendors may provide the Funds with valuations that are based on significant unobservable inputs, and in those circumstances we classify the investment securities in Level 3.

The Funds use non-binding broker quotes as the primary basis for valuation when there is limited, or no, relevant market activity for a specific investment or for other investments that share similar characteristics. The Funds have not adjusted the prices obtained. Investment securities priced using non-binding broker quotes are included in Level 3. As is the case with the primary pricing vendor, third-party brokers do not provide access to their proprietary valuation models, inputs and assumptions. Accordingly, Pyxis conducts internal reviews of pricing

 
Annual Report  |  127

 


Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

for all such investment securities periodically to ensure reasonableness of valuations used in the Funds’ financial statements. These reviews are designed to identify prices that appear stale, those that have changed significantly from prior valuations, and other anomalies that may indicate that a price may not be accurate. Based on the information available, Pyxis believes that the fair values provided by the brokers are representative of prices that would be received to sell the assets at the measurement date (exit prices).

All portfolio securities of the Money Market Fund and any short-term securities of sufficient credit quality held by any other Fund with remaining maturities of sixty days or less at the time of purchase are valued on the basis of amortized cost which approximates market value and these are included in Level 2.

A Fund’s written or purchased options are valued at the last sales price, or if no sales occurred that day, at the last reported bid price and those are also included in Level 2.

If prices are not readily available for a portfolio security, or if it is believed that a price for a portfolio security does not represent its fair value, the security may be valued using procedures approved by the Funds’ Board of Trustees that are designed to establish its “fair” value. These securities would be classified in Level 3. Those procedures require that the fair value of a security be established by the fair valuation committee. The fair valuation committee follows different protocols for different types of investments and circumstances. The fair value procedures may be used to value any investment of any Fund in the appropriate circumstances.

Foreign securities may be valued with the assistance of an independent fair value pricing service in circumstances where it is believed that they have been or would be materially affected by events occurring after the close of the portfolio security’s primary market and before the close of regular trading on the NYSE. In these circumstances the Fund classifies the investment securities in Level 2. This independent fair value pricing service uses a model to identify affected securities and portfolios taking into consideration various factors and the fair value of such securities may be something other than the last available quotation or other market price.

Portfolio securities may be valued using techniques other than market quotations, under the circumstances described above. The value established for a portfolio security may be different than what would be produced through the use of another methodology or if it had been priced using market quotations. Portfolio securities that are valued using techniques other than market quotations, including “fair valued” securities, may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. In addition, there is no assurance that the Funds could sell a portfolio security for the value established for it at any time and it is possible that the Funds would incur a loss because a portfolio security is sold at a discount to its established value.

Other financial investments are derivative instruments that are not reflected in Total Investments, such as futures, forwards, swaps, and written options contracts, which are valued based on fair value as discussed above.

The Funds use closing prices for derivatives included in Level 1, which are traded either on exchanges or liquid over-the counter markets. Derivative assets and liabilities included in Level 2 primarily represent interest rate swaps, cross-currency swaps and foreign currency and commodity forward and option contracts. Derivative assets and liabilities included in Level 3 primarily represent interest rate products that contain embedded optionality or prepayment features.

Fair value determinations are required for securities whose value is affected by a significant event that will materially affect the value of a domestic or foreign security and which occurs subsequent to the time of the close of the principal market on which such domestic or foreign security trades but prior to the calculation of the Fund’s net asset value (“NAV”).

At the end of each calendar quarter, management evaluates the Level 2 and 3 assets and liabilities for changes in liquidity, including but not limited to: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from third party services, and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the Level 1 and 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Fund’s investments may fluctuate from period to period. Additionally, the fair value of investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values the Fund may ultimately realize. Further, such investments may be subject to legal and other restrictions on resale or otherwise less liquid than publicly traded securities.

 

 

128  |  Annual Report


Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. Transfers in and out of levels are recognized at the value at the beginning of the period. The following tables present the Funds’ investments measured at fair value on a recurring basis at September 30, 2012:

 

     

Total

value at
September 30, 2012

   

Level 1
Quoted

Price

    Level 2
Significant
Observable
Inputs
     Level 3
Significant
Unobservable
Inputs
 

Alpha Trend Strategies Fund

         

Assets

         

Exchange Traded Funds*

   $ 3,280,396      $ 3,280,396      $       $   

Registered Investment Company

     548,248        548,248                  
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 3,828,644      $ 3,828,644      $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Alternative Income Fund

         

Assets

         

Exchange Traded Funds*

   $ 8,068,356      $ 8,068,356      $       $   

Registered Investment Company

     4,831,331        4,831,331                  
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total Assets

     12,899,687        12,899,687                  
  

 

 

   

 

 

   

 

 

    

 

 

 

Liabilities

         

Short Sales

     (2,771,100     (2,771,100               
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total Liabilities

     (2,771,100     (2,771,100               
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 10,128,587      $ 10,128,587      $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Energy and Materials Fund

         

Assets

         

Registered Investment Company

   $ 223,385      $ 223,385      $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 223,385      $ 223,385      $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Trend Following Fund

         

Assets

         

Exchange Traded Funds*

   $ 1,798,448      $ 1,798,448      $       $   

Registered Investment Company

     601,198        601,198                  
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 2,399,646      $ 2,399,646      $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Core America Equity Fund

         

Assets

         

Common Stock*

   $ 193,965,562      $ 193,965,562      $       $   

Other Investments

     3,283,279        3,206,664        76,615           

Registered Investment Company

     3,922,220        3,922,220                  
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total Assets

     201,171,061        201,094,446        76,615           
  

 

 

   

 

 

   

 

 

    

 

 

 

Liabilities

         

Other Financial Instruments

         

    Equity Contracts - Futures**

     (6,215     (6,215               
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total Liabilities

     (6,215     (6,215               
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 201,164,846      $ 201,088,231      $ 76,615       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Dividend Equity Fund

         

Assets

         

Common Stock*

   $ 10,074,034      $ 10,074,034      $       $   

Other Investments

     263,355        263,355                  

Registered Investment Company

     581,353        581,353                  
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 10,918,742      $ 10,918,742      $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

 

Annual Report   |  129


Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

     

Total

value at
September 30, 2012

   

Level 1

Quoted

Price

    Level 2
Significant
Observable
Inputs
     Level 3
Significant
Unobservable
Inputs
 

Premier Growth Equity Fund

         

Assets

         

Common Stock*

   $ 154,000,869      $ 154,000,869      $       $   

Other Investments

     11,190               11,190           

Registered Investment Company

     8,887,596        8,887,596                  
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total Assets

     162,899,655        162,888,465        11,190           
  

 

 

   

 

 

   

 

 

    

 

 

 

Liabilities

         

Other Financial Instruments

         

    Equity Contracts - Futures**

     (61,685     (61,685               
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total Liabilities

     (61,685     (61,685               
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 162,837,970      $ 162,826,780      $ 11,190       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Small-Cap Equity Fund

         

Assets

         

Common Stock*

   $ 35,498,701      $ 35,498,701      $       $   

Other Investments

     7,573               7,573           

Registered Investment Company

     1,873,757        1,873,757                  
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 37,380,031      $ 37,372,458      $ 7,573       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Global Equity Fund

         

Assets

         

Common Stock*

   $ 21,752,524      $ 21,752,524      $       $   

Preferred Stock

     447,677        447,677                  

Other Investments

     533,376        509,630        23,746           

Registered Investment Company

     696,787        696,787                  
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 23,430,364      $ 23,406,618      $ 23,746       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

International Equity Fund

         

Assets

         

Common Stock*

   $ 11,690,104      $ 11,690,104      $       $   

Preferred Stock*

     189,011        189,011                  

Other Investments

     14,383               14,383           

Registered Investment Company

     621,636        621,636                  
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total Assets

     12,515,134        12,500,751        14,383           
  

 

 

   

 

 

   

 

 

    

 

 

 

Liabilities

         

Other Financial Instruments

         

    Equity Contracts - Futures**

     (9,472     (9,472               
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total Liabilities

     (9,472     (9,472               
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 12,505,662      $ 12,491,279      $ 14,383       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total Return Fund

         

Assets

         

Domestic Equity*

   $ 30,949,499      $ 30,949,499      $       $   

Foreign Common Stock*

     13,283,632        13,283,632                  

Preferred Stock

     199,968        199,968                  

Agency Collateralized Mortgage Obligations

     170,579               170,579           

Agency Mortgage Backed

     7,816,505               7,816,505           

Asset Backed

     15,942               15,942           

Corporate Notes

     6,984,186               6,984,186           

Municipal Bonds and Notes

     154,998               154,998           

Non-Agency Collateralized Mortgage Backed Securities

     666,425               666,425           

Non-Agency Collateralized Mortgage Obligations

     50,766               50,766           

Sovereign Bonds

     571,727               571,727           

U.S. Treasuries

     7,963,665               7,963,665           

Other Investments

     4,486,481        4,276,432        210,049           

Registered Investment Company

     10,793,769        10,793,769                  

 

130  |  Annual Report


Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

     

Total

value at
September 30, 2012

   

Level 1
Quoted

Price

    Level 2
Significant
Observable
Inputs
     Level 3
Significant
Unobservable
Inputs
 

Other Financial Instruments

         

    Equity Contracts - Futures**

   $ 1,373      $ 1,373      $       $   

    Interest Rate Contracts - Futures**

     33,104        33,104                  
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total Assets

     84,142,619        59,537,777        24,604,842           
  

 

 

   

 

 

   

 

 

    

 

 

 

Liabilities

         

Other Financial Instruments

         

    Equity Contracts - Futures**

     (121,439     (121,439               

    Interest Rate Contracts - Futures**

     (22,717     (22,717               
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total Liabilities

     (144,156     (144,156               
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 83,998,463      $ 59,393,621      $ 24,604,842       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Tax-Exempt Fund

         

Assets

         

Municipal Bonds and Notes

   $ 35,376,016      $      $ 35,376,016       $   

Other Investments

     2,880               2,880           

Registered Investment Company

     485,121        485,121                  
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 35,864,017      $ 485,121      $ 35,378,896       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Fixed Income Fund

         

Assets

         

Agency Collateralized Mortgage Obligations

   $ 1,702,230      $      $ 1,702,230       $   

Agency Mortgage Backed

     30,236,512               30,236,512           

Asset Backed

     4,308,755               4,308,755           

Corporate Notes

     23,334,777               23,334,777           

Municipal Bonds and Notes

     572,473               572,473           

Non-Agency Collateralized Mortgage Backed Securities

     4,186,365               4,186,365           

Non-Agency Collateralized Mortgage Obligations

     14,002               14,002           

Sovereign Bonds

     1,881,760               1,881,760           

U.S. Government Agency

     6,515,231               6,515,231           

U.S. Treasuries

     122,206,984               122,206,984           

Other Investments

     750,141               750,141           

Registered Investment Company

     20,274,450        20,274,450                  

Other Financial Instruments

         

    Interest Rate Contracts - Futures**

     72,200        72,200                  
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total Assets

     216,055,880        20,346,650        195,709,230           
  

 

 

   

 

 

   

 

 

    

 

 

 

Liabilities

         

Other Financial Instruments

         

    Interest Rate Contracts - Futures**

     (36,846     (36,846               
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total Liabilities

     (36,846     (36,846               
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 216,019,034      $ 20,309,804      $ 195,709,230       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Money Market Fund

         

Assets

         

Certificates of Deposit

   $ 11,850,013      $      $ 11,850,013       $   

Commercial Paper

     14,697,681               14,697,681           

Corporate Notes

     2,049,657               2,049,657           

U.S. Government Agency

     22,396,890               22,396,890           

U.S. Treasuries

     14,471,429               14,471,429           

Repurchase Agreement

     6,500,000               6,500,000           

Registered Investment Company

     3,444,669        3,444,669                  
  

 

 

   

 

 

   

 

 

    

 

 

 

      Total

   $ 75,410,339      $ 3,444,669      $ 71,965,670       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

 

*See Investment Portfolio detail for Industry breakout.

**Includescumulative unrealized appreciation/(depreciation) of future contracts as reported in the Investment Portfolio.

 

Annual Report  |  131


Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

Certain foreign securities are fair valued by utilizing an external pricing service in the event of any significant market movements between the time the series valued such foreign securities and the earlier closing of foreign markets. Such fair valuations are categorized as Level 2 in the hierarchy. Significant market movements occurred at September 30, 2011 and therefore the Funds utilized the external pricing service model adjustments. As a result, securities still held at September 30, 2012 by the Global Equity Fund and International Equity Fund since the beginning of the period, were transferred from Level 2 into Level 1 with an end of period value of $9,182,639 and $9,098,265. The remaining Funds did not have any significant transfers in and out of Level 1 and Level 2 during the period.

Securities Transactions

Securities transactions are accounted for as of the trade date. Realized gains/(losses) on investments sold are recorded on the basis of identified cost for both financial statement and federal tax purposes.

Each Fund’s income, expenses (other than distribution fees) and realized and unrealized gains and losses are allocated proportionally each day among each Fund’s respective share classes based upon the relative net assets of each class share.

Repurchase Agreements

Certain Funds engage in repurchase agreement transactions with respect to instruments that are consistent with the Fund’s investment objective or policies. The Funds’ custodian takes possession of the collateral pledged for investments in repurchase agreements on behalf of the Funds. The Funds value the underlying collateral daily on a mark-to-market basis to determine that the value, including accrued interest, is at least equal to 102% for domestic securities and 105% for international securities of the repurchase price. In the event the seller defaults and the value of the security declines, or if the seller enters an insolvency proceeding, realization of the collateral by the Funds may be delayed or limited.

Foreign Currency

Accounting records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated to U.S. dollars at the prevailing rates of exchange at period end. Purchases and sales of securities, income receipts and expense payments denominated in foreign currencies are translated into U.S. dollars at the prevailing exchange rate on the respective dates of such transactions.

All assets and liabilities of the Funds initially expressed in foreign currency values are converted into U.S. dollars at the WM/Reuter exchange rate computed at 11:00 a.m., Eastern time.

The Funds do not isolate the portion of the results of operations resulting from changes in foreign exchange rates from the fluctuations arising from changes in market prices of securities during the period. Such fluctuations are included in net realized or unrealized gain or loss from investments. Net realized gains or losses on foreign currency transactions repre-

sent net gains or losses on sales and maturities of foreign currency contracts, disposition of foreign currencies, the difference between the amount of net investment income and withholding taxes accrued and the U.S. dollar amount actually received or paid, and gains or losses between the trade and settlement date on purchases and sales of foreign securities. Net unrealized foreign exchange gains and losses arising from changes in the value of other assets and liabilities (including foreign currencies and open foreign currency contracts) as a result of changes in foreign exchange rates are included as increases or decreases in unrealized appreciation/depreciation on foreign currency related transactions.

Derivatives

The Funds are subject to equity price risk, interest rate risk, and foreign currency exchange rate risk in the normal course of pursuing their investment objectives. The Funds enter into derivative transactions for the purpose of hedging against the effects of changes in the value of portfolio securities due to anticipated changes in market conditions, to gain market exposure for residual and accumulating cash positions, and for managing the duration of fixed-income investments.

Futures Contracts

A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date. Certain Funds invest in interest rate, financial and stock or bond index futures contracts subject to certain limitations. The Funds invest in futures contracts to manage their exposure to the stock and bond markets and fluctuations in currency values. Buying futures tends to increase a Fund’s exposure to the underlying instrument while selling futures tends to decrease a Fund’s exposure to the underlying instrument, or economically hedge other Fund investments. With futures contracts, there is minimal counterparty credit risk to the Funds since futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all traded futures, guarantees the futures against default. A Fund will not enter into a transaction involving futures for speculative purposes. A Fund’s risks in using these contracts include changes in the value of the underlying instruments, non-performance of the counterparties under the contracts’ terms and changes in the liquidity of the secondary market for the contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they principally trade.

Upon entering into a financial futures contract, the Funds are required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount, known as initial margin deposit. Subsequent payments, known as variation margins, are made or received by the Funds each day, depending on the daily fluctuation in the fair value of the underlying security. The Funds record an unrealized gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, the Funds may not achieve the anticipated benefits of the futures contracts and may incur a loss. The Funds recognize a realized gain or loss on the expiration or closing of a futures contract. Cash held as collateral for futures contracts is shown on the Statement of Assets and Liabilities as Restricted Cash for the International Equity Fund and Total

 
132  |  Annual Report   

 


Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

Return Fund. Securities held as collateral for futures contracts can be found on the Investment Portfolio.

For the year ended September 30, 2012, the average notional volume of derivative activity for the Funds is as follows:

 

 Fund    Average Notional
Volume Year
Ended 09/30/2012
     Notional Volume
as of 09/30/2012
 

Long Futures:

     

Core America Equity

     $    451,786         $    358,563   

Premier Growth Equity

     3,628,640         3,585,625   

Global Equity

     292,886           

International Equity

     181,948         342,148   

Total Return

     9,271,093         9,742,627   

Fixed Income

     17,957,014         16,058,594   

Short Futures:

     

Premier Growth Equity

     271,280           

Global Equity

     94,991           

International Equity

     57,963           

Total Return

     7,030,059         7,150,328   

Fixed Income

     14,465,837         14,027,375   

Short Sales

The Funds may sell securities short. A short sale is a transaction in which a Fund sells a security it does not own in anticipation that the market price of that security will decline. When a Fund makes a short sale, it must borrow the security sold short from a broker-dealer and deliver it to the buyer upon conclusion of the transaction. A Fund may have to pay a fee to borrow particular securities and is often obligated to pay any dividends or other payments received on such borrowed securities. Cash held as collateral for short sales is classified as restricted cash on the Statement of Assets and Liabilities. Securities held as collateral for short sales are shown on the Investment Portfolio for the Pyxis Alternative Income Fund.

Options

Certain Funds purchase and write options, subject to certain limitations. The Funds may invest in options contracts to manage their exposure to the stock and bond markets and fluctuations in foreign currency values. Writing puts and buying calls tend to increase a Fund’s exposure to the underlying instrument while buying puts and writing calls tend to decrease a Fund’s exposure to the underlying instrument, or economically hedge other Fund investments. A Fund will not enter into a transaction involving options for speculative purposes. A Fund’s risks in using these contracts include changes in the value of the underlying instruments, non-performance of the counterparties under the contracts’ terms and changes in the liquidity of the secondary market for the contracts. Options are valued at the last sale price, or if no sales occurred on that day, at the last quoted bid price.

When a Fund writes an option, the amount of the premium received is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Funds on the expiration date as realized gains from investments. The difference between the premium and the amount

paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium is less than the amount paid for the closing purchase, as a realized loss. When an option is exercised, the proceeds from the sale of the underlying security or the cost basis of the securities purchased are adjusted by the original premium received or paid. For the year ended September 30, 2012, none of the Funds invested in options.

When-Issued Securities and Forward Commitments

Each of the Funds may purchase or sell securities on a when-issued or forward commitment basis. These transactions are arrangements in which the Funds purchase and sell securities with payment and delivery scheduled a month or more after entering into the transactions. The price of the underlying securities and the date when these securities will be delivered and paid for are fixed at the time the transaction is negotiated. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract. In connection with such purchases, the Funds maintain cash or liquid assets in an amount equal to purchase commitments for such underlying securities until settlement date. For sales commitments, the Funds maintain equivalent deliverable securities as “cover” for the transaction. Unsettled commitments are valued at current market value of the underlying security. Daily fluctuations in the value of such contracts are recorded as unrealized gains or losses. The Funds will not enter into such commitments for the purpose of investment leverage. As of September 30, 2012, the Total Return Fund and Fixed Income Fund each hold securities on a when-issued basis. These securities are detailed in each Fund’s Investment Portfolio.

Forward Foreign Currency Exchange Contracts

Certain Funds enter into forward foreign currency exchange contracts to facilitate transactions in foreign denominated securities and to manage the Funds’ currency exposure. Forward foreign currency exchange contracts are valued at the mean between the bid and the offered forward rates as last quoted by a recognized dealer. The aggregate principal amounts of the contracts are not recorded in the Funds’ financial statements. Such amounts appear under the caption Forward Foreign Currency Contracts in the Investment Portfolio. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (or liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains or losses on foreign currency related transactions. The Funds’ risks in using these contracts include changes in the value of foreign currency or the possibility that the counterparties do not perform under the contracts’ terms. When a Fund enters into a forward foreign currency exchange contract, it is required to segregate cash or liquid securities with its custodian in an amount equal to the value of the Fund’s total assets committed to the consummation of the forward contract. If the value of the segregated securities declines, additional cash or securities is segregated so that the value of the account will equal the amount of the Fund’s commitment with respect to the contract. For the year ended September 30, 2012,

 
   Annual Report   |  133

 


Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

none of the funds invested in forward foreign currency exchange contracts.

Investments in Foreign Markets

Investments in foreign markets involve special risks and considerations not typically associated with investing in the United States. These risks include revaluation of currencies, high rates of inflation, restrictions on repatriation of income and capital, and adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls, tariffs and taxes, subject to delays in settlements, and their prices may be more volatile.

The Funds may be subject to capital gains and repatriation taxes imposed by certain countries in which they invest. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based upon net investment income, net realized gains and net unrealized appreciation as income and/or capital gains are earned.

U.S. Federal Income Tax Status

The Funds intend to comply with all sections of the Internal Revenue Code of 1986, as amended (the “Code”) applicable to regulated investment companies, including the distribution of substantially all of their taxable net investment income, tax-exempt income, and net realized capital gains to their shareholders. Therefore, no provision for federal income tax has been made. Each Fund is treated as a separate taxpayer for federal income tax purposes.

Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (current and prior three tax years), and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

Distributions to Shareholders

Tax-Exempt Fund, Fixed Income Fund, and Money Market Fund declare investment income dividends daily and pay them monthly. Dividend Equity Fund and Alternative Income Fund declare and pay investment income dividends monthly. All other Funds declare and pay dividends from investment income annually. All Funds declare and pay net realized capital gains in excess of capital loss carryforwards distributions annually.

Income Recognition

Corporate actions (including cash dividends) are recorded on the ex-dividend date, net of applicable withholding taxes, except for certain foreign corporate actions, which are recorded as soon after ex-dividend date as such information becomes available. Interest income is recorded on the accrual basis.

Accretion of discount and amortization of premium on taxable bonds are computed to the call or maturity date, whichever is shorter, using the effective yield method. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates.

Expenses

Fund specific expenses are allocated to the Fund that incurs such expense and pro rata across share classes. Expenses, other than those incurred by a specific Fund, are allocated pro rata among Funds and share classes. Such expenses may include custodial fees, legal and accounting fees, printing costs and registration fees. Certain class specific expenses (such as distribution and shareholder servicing fees) are allocated to the class that incurs such expense.

Short-Term Trading (Redemption) Fees

Shares held in the Global Equity Fund and International Equity Fund less than 90 days and in the Alpha Trend Strategies Fund, Alternative Income Fund, Dividend Equity Fund, Energy and Materials Fund and Trend Following Fund less than 60 days are subject to a short-term trading fee equal to 2.00% of the proceeds of the redeemed shares. These fees, which are retained by the respective Fund, are accounted for as an addition to paid-in capital. The redemption fee has currently been suspended for the Global Equity Fund and International Equity Fund. It may be reinstated at any time without prior notice.

 

     Redemption Fee Amount  
 Fund    Class A      Class C      Class R      Class Y  

Alpha Trend Strategies

     $1,914         $—         $590         $6,860   

Alternative Income

     864         12         419         2,237   

Trend Following

     20                           

Dividend Equity

     29         50                 715   
 

 

134  |  Annual Report


Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

Note 3. U.S. Federal Income Tax Information

The character of income and gains to be distributed is determined in accordance with income tax regulations which may differ from U.S. GAAP. These differences include (but are not limited to) investments organized as partnerships for tax purposes, foreign taxes, investments in futures, losses deferred to off-setting positions, tax treatment of organizational start-up costs, losses deferred due to wash sale transactions, tax treatment of net investment loss and distributions in excess of net investment income, dividends deemed paid upon shareholder redemption of fund shares and tax attributes from fund reorganizations. Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations. These reclassifications have no impact on net investment income, realized gains or losses, or net asset value of the Funds. The calculation of net investment income per share in the Financial Highlights table excludes these adjustments.

The reclassifications for the year or period ended September 30, 2012, were as follows:

 

      Undistributed
Net Investment
Income
    Accumulated
Net Realized
Loss
    Paid In
Capital
 

Alpha Trend Strategies Fund

   $ 29,641      $ (2,975   $ (26,666

Alternative Income Fund

     36,210               (36,210

Energy and Materials Fund

     23,219               (23,219

Trend Following Fund

     21,146        (1,012,946     991,800   

Core America Equity Fund

     (17,219     (3,829,984     3,847,203   

Dividend Equity Fund

     64,640        (6,664     (57,976

Small-Cap Equity Fund

     19,699               (19,699

Global Equity Fund

     (11,433     24,053        (12,620

International Equity Fund

     788        17,404        (18,192

Total Return Fund

     (28,470     28,470          

Fixed Income Fund

     (135,683     (2,605,596     2,741,279   

Money Market Fund

     3        41        (44

At September 30, 2012, the most recent tax year end, components of distributable earnings on a tax basis is as follows:

 

 Fund    Undistributed
Income
     Undistributed
Long-Term
Capital Gains
     Undistributed
Tax Exempt
Income
     Accumulated
Capital and
Other Losses
    Net Tax
Appreciation/
(Depreciation)*
 

Alpha Trend Strategies Fund

   $ 41,598         $       —         $       —       $        $         (73,973

Alternative Income Fund

     71,870                         (263,148     (168,206

Energy and Materials Fund

     349,163                                  

Trend Following Fund

                             (465,016     61,144   

Core America Equity Fund

     244,231                         (6,016,696     23,986,077   

Dividend Equity Fund

     50,665                                1,109,665   

Premier Growth Equity Fund

     200,843                         (515,265     41,687,424   

Small-Cap Equity Fund

             2,528,613                 (329,192     3,252,984   

Global Equity Fund

                             (6,467,395     2,294,246   

International Equity Fund

                                 (14,386,114     553,981   

Total Return Fund

     751,625                         (7,528,760     4,355,179   

Tax-Exempt Fund

                     78,151         (557,646     3,477,459   

Fixed Income Fund

                             (2,356,170     2,153,516   

Money Market Fund

                             (21,834       

 

* Any differences between book-basis and tax-basis net unrealized appreciation/(depreciation) are primarily due to deferral of losses from wash sale, and other adjustments.

As of September 30, 2012, the most recent tax year end, the following Funds have capital loss carryovers as indicated below. The capital loss carryover is available to offset future realized capital gains to the extent provided in the Code and regulations promulgated thereunder. To the extent that these carryover losses are used to offset future capital gains, it is probable that the gains so offset will not be distributed to shareholders because they would be taxable as ordinary income.

 

      2016      2017     2018      2019      No Expiration
Short Term*
     No Expiration
Long Term*
     Total  

Trend Following Fund

   $       $      $       $       $ 169,921       $       $ 169,921   

Core America Equity Fund

             2,803,683 **      3,213,013                                 6,016,696   

Premier Growth Equity Fund

                    435,857                                 435,857   

 

  
   Annual Report   |  135


Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

      2016      2017      2018      2019     

No Expiration

Short Term*

    

No Expiration

Long Term*

    Total  

Global Equity Fund

   $       $       $ 5,960,966       $       $       $      $ 5,960,966   

International Equity Fund

             1,249,332         11,097,436         1,384,765                        13,731,533   

Total Return Fund

                     7,528,760                                7,528,760   

Tax-Exempt Fund

     168,126         291,901         97,619                                557,646   

Fixed Income Fund

                                             2,356,170 ***      2,356,170   

 

* Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
** Capital loss acquired due to Core America Equity Fund’s merger with U.S. Equity Fund on September 28, 2012 (See Note 10).
*** Capital loss acquired due to Fixed Income Fund’s merger with Short Term Government Fund and Government Securities Fund on September 28, 2012 (See Note 10).

 

During the year ended September 30, 2012, the Core America Equity Fund, the Premier Growth Equity Fund, the Small-Cap Equity Fund, the Global Equity Fund, the International Equity, the Total Return Fund, the Tax-Exempt Fund and Fixed Income Fund utilized capital carryforwards in the amount of $1,920,522, $7,602,791, $1,039,571, $944,768, $72,047, $3,066,036, $209,858 and $2,618,640, respectively.

The tax composition of distributions paid during the years or periods ended September 30, 2012 and September 30, 2011 (unless otherwise indicated) were as follows:

 

    Distributions paid from:  
 Fund   Exempt
Interest
    Ordinary
Income*
    Long-Term
Capital Gains
    Return of
Capital**
 

Alpha Trend Strategies Fund

       

2012

  $      $      $      $   

Alternative Income Fund

       

2012

           434,374                 

Energy and Materials Fund

       

2012

           21,348                 

Trend Following Fund

       

2012

           17,796        48,183          

2011***

                           

1/31/11

           76,655        29,835          

Core America Equity Fund

       

2012

           326,921                 

2011

           269,463                 

Dividend Equity Fund

       

2012

           155,825                 

Premier Growth Equity Fund

       

2012

                           

2011

                           

Small-Cap Equity Fund

       

2012

                           

2011

                           
    Distributions paid from:  
 Fund   Exempt
Interest
    Ordinary
Income*
    Long-Term
Capital Gains
    Return of
Capital**
 

Global Equity Fund

       

2012

  $      $      $      $   

2011

           112,799                 

International Equity Fund

       

2012

           156,149                 

2011

           286,130                 

Total Return Fund

       

2012

           1,063,431                 

2011

           628,676                 

Tax-Exempt Fund

       

2012

    954,950        1,882                 

2011

    1,134,855        12,378                 

Fixed Income Fund

       

2012

           1,915,462        8,748        180,400   

2011

           3,246,163                 

Money Market Fund

       

2012

           9,459                 

2011

           15,665                 

 

* For tax purposes, short-term capital gains distributions, if any, are considered ordinary income distributions.
** Additional information will be distributed on Form 1099 at the end of the calendar year.
*** For the eight month period ended September 30, 2011.

Unrealized appreciation and depreciation at September 30, 2012, based on cost of investments for U.S. federal income tax purposes was:

 

 Fund   Gross
Appreciation
    Gross
Depreciation
    Net
Appreciation/
(Depreciation)
    Cost  

Alpha Trend Strategies Fund

  $ 87,797      $ (161,770   $ (73,973   $ 3,902,617   

Alternative Income Fund

    161,818        (309,127     (147,309     13,046,996   
 

 

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NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

 Fund   Gross
Appreciation
    Gross
Depreciation
    Net
Appreciation/
(Depreciation)
    Cost  

Energy and Materials Fund

  $      $      $      $ 223,385   

Trend Following Fund

    65,402        (4,258     61,144        2,338,502   

Core America Equity Fund

    28,981,482        (4,995,405     23,986,077        177,184,984   

Dividend Equity Fund

    1,189,139        (79,474     1,109,665        9,809,077   

Premier Growth Equity Fund

    45,909,797        (4,222,373     41,687,424        121,212,231   

Small-Cap Equity Fund

    5,471,872        (2,218,888     3,252,984        34,127,047   

Global Equity Fund

    2,373,844        (80,297     2,293,547        21,136,817   

International Equity Fund

    1,327,667        (766,092     561,575        11,953,559   

Total Return Fund

    6,583,031        (2,226,047     4,356,984        79,751,158   

Tax-Exempt Fund

    3,477,852        (393     3,477,459        32,386,558   

Fixed Income Fund

    4,703,308        (2,549,792     2,153,516        213,830,164   

Money Market Fund

                         75,410,339   

Under current laws, certain capital losses realized after October 31 may be deferred (and certain ordinary losses after January 1st may be deferred) and treated as occurring on the first day of the following fiscal year. For the fiscal year ended September 30, 2012, the Funds elected to defer the following losses incurred from November 1, 2011 through September 30, 2012:

 

 Fund  

Long-Term

Realized
Capital Losses

    Short-Term
Realized
Capital Losses
    Ordinary
Losses
 

Alternative Income Fund

  $      $ 263,148      $   

Trend Following Fund

    18,192        210,811        66,092   

Premier Growth Equity Fund

           79,408          

Small-Cap Equity Fund

                  329,192   

Global Equity Fund

           493,570        12,859   

International Equity Fund

    294,023        360,558          

Money Market Fund

           21,834          

Note 4. Derivatives Transactions

Shown below are the derivative contracts entered into by the Fund, summarized by primary risk exposure, as they appear on the Statements of Assets and Liabilities.

 

 Fund   Asset Derivative
Fair Value(1)*
 

Liability Derivative 

Fair Value*

Core America Equity Fund

       

    Equity Contracts

    $       $ (6,215 )

Premier Growth Equity Fund

       

    Equity Contracts

              (61,685 )

International Equity Fund

       

    Equity Contracts

              (9,472 )
 Fund   Asset Derivative
Fair Value(1)*
 

Liability Derivative 

Fair Value*

Total Return Fund

       

    Equity Contracts

    $ 1,373       $ (121,439 )

    Interest Rate Contracts

      33,104         (22,717 )

Fixed Income Fund

       

    Interest Rate Contracts

      72,200         (36,846 )

 

(1) Statement of Assets and Liabilities location: Variation margin receivable.
* Includes cumulative unrealized appreciation/(depreciation) of futures contracts as reported in the Investment Portfolio and within the components of the net assets section of the Statements of Assets and Liabilities. Only the current day’s variation margin is reported within the receivables and/or payables of the Statements of Assets and Liabilities.

Shown below are the effects of derivative instruments on the Funds’ Statements of Operations, summarized by primary risk exposure.

 

 Fund   Net Realized
Gain/(Loss) on
Derivatives(1)
 

Net Change in Unrealized 

Appreciation/(Depreciation) 

on Derivatives(2)

Core America Equity Fund

       

    Equity Contracts

    $ 57,781       $ 1,887  

Premier Growth Equity Fund

       

    Equity Contracts

      667,089         27,376  

Global Equity Fund

       

    Equity Contracts

      121,903         (3,482 )

International Equity Fund

       

    Equity Contracts

      (7,211 )       (12,436 )

Total Return Fund

       

    Equity Contracts

      822,383         (69,846 )

    Interest Rate Contracts

      (541,617 )       176,989  

Fixed Income Fund

       

    Interest Rate Contracts

      (1,491,185 )       365,200  

 

(1) Statement of Operations location: Realized gain (loss) on future contracts.
(2) Statement of Operations location: Net increase (decrease) in unrealized appreciation (depreciation) on future contracts.

Note 5. Security Lending

Each Fund may make secured loans of its portfolio securities amounting to not more than one-third of the value of its total assets, thereby realizing additional income. The risks in lending portfolio securities, as with other extensions of credit, consist of possible delays in recovery of the securities or possible loss of rights in the collateral should the borrower fail financially and possible investment losses in the investment of collateral. Pursuant to the Fund’s securities lending policies, securities loans are made to unaffiliated broker-dealers pursuant to agreements requiring that loans be continuously secured by collateral in cash or short-term debt obligations at least equal at all times to the value of the securities subject to the loan. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The borrower pays to a Fund

 

 

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Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

an amount equal to any interest or dividends received on securities subject to the loan. The Fund retains all or a portion of the interest received on investment of the cash collateral or receives a fee from the borrower. At September 30, 2012, Total Return Fund held collateral in cash and securities in the amount of $930,866 and $4,743,769, respectively. Fixed Income Fund held collateral in cash and securities in the amount of $770,473 and $19,280,066, respectively. All other Funds held collateral in cash.

 

 Fund   Security Lending
market value
 

Security Lending 

collateral

Alternative Income Fund

    $ 4,022,000       $ 4,125,000  

Trend Following Fund

      653,650         677,825  

Core America Equity Fund

      712,437         729,648  

Dividend Equity Fund

      491,756         500,515  

Small-Cap Equity Fund

      4,493,548         4,647,969  

Global Equity Fund

      870,552         918,956  

Total Return Fund

      5,515,593         5,674,635  

Fixed Income Fund

      19,538,017         20,050,539  

Note 6. Line of Credit

The Funds entered into a $25,000,000 unsecured credit agreement with The Bank of New York Mellon (the “Credit Agreement”) to be used for temporary purposes to facilitate portfolio liquidity. Each of the Funds, with the exception of the Trend Following Fund, has access to the facility, but aggregate borrowings may not exceed $25,000,000. Interest is charged to the Funds based on their borrowings at a rate equal to the greater of the (a) Federal Funds Effective Rate; (b) Overnight LIBOR; (c) or one-month LIBOR, plus 1.25%. In addition, the Funds have agreed to pay commitment fee expenses of 0.12% on the undrawn amounts, which are included in Other on the Statement of Operations. As of September 30, 2012, the Funds did not utilize the line of credit.

Note 7. Fees and Compensation Paid to Affiliates

Investment Advisory and Administration Fees

Pyxis serves as the investment adviser to each Fund. For its investment advisory and administrative services, each Fund pays Pyxis a monthly fee, computed and accrued daily, based on an annual rate of the Funds’ Average Daily Managed Assets. Average Daily Managed Assets of the Fund means the average daily value of the total assets of the Fund less all accrued liabilities of the Fund (other than the aggregate amount of any outstanding borrowings constituting financial leverage).

The table below shows each Fund’s contractual advisory fee with Pyxis for the year ended September 30, 2012:

 

 Fund  

Annual Fee Rate 

to Pyxis

Alpha Trend Strategies Fund

      1.80 %

Alternative Income Fund

      1.80 %*

Energy and Materials Fund

      1.00 %

Trend Following Fund

      1.80 %**

Core America Equity Fund

      0.55 %
 Fund  

Annual Fee Rate 

to Pyxis

Dividend Equity Fund

      1.00 %***

Premier Growth Equity Fund

      0.60 %

Small-Cap Equity Fund

      0.95 %

Global Equity Fund

      0.75 %

International Equity Fund

      0.80 %

Total Return Fund

      0.50 %

Tax-Exempt Fund

      0.35 %

Fixed Income Fund

      0.35 %

Money Market Fund

      0.25 %****

 

* Pyxis has voluntarily undertaken to reduce its advisory fee and/or subsidize certain expenses. This voluntary management fee reduction and/or expense subsidy may be modified or discontinued by Pyxis at any time without prior notice.
** Pyxis has contractually agreed to reduce its advisory fee and/or subsidize certain expenses of the Fund through May 31, 2013 to the extent that the Fund’s annual operating expenses exceed 2.25% with respect to Class A shares, 2.90% with respect to Class C shares, 2.40% with respect to Class R shares and 1.90% with respect to Class Y shares. After May 31, 2013, this management fee reduction and/or expense subsidy may be modified or discontinued by Pyxis at any time.
*** Pyxis has contractually undertaken to reduce its advisory fee and/or subsidize certain expenses of the Fund through January 31, 2014 to the extent that the annual operating expenses exceed 1.35% with respect to Class A shares, 2.00% with respect to Class C shares, 2.50% with respect to Class R shares and 1.00% with respect to Class Y shares.
**** Pyxis has voluntarily undertaken to reduce its advisory fee and/or subsidize certain expenses of the Fund to the extent necessary to maintain a minimum annualized net yield of 0.00% for all share classes. This voluntary management fee reduction and/or expense subsidy may be modified or discontinued by Pyxis at any time without prior notice. There can be no assurance that this fee reduction will be sufficient to avoid any loss.

To the extent Pyxis waives its fee or reimburses expenses to satisfy the contractual limitation set forth above (the “cap”), it may seek repayment of a portion or all of such amounts at any time within three fiscal years after the fiscal year in which such amounts were waived or reimbursed, subject to the cap. There can be no assurance that this fee reduction will be sufficient to avoid any loss. On September 30, 2012, the amounts subject to possible future recoupment under the Trend Following Fund’s expense limitation are $98,009 expiring in 2014 and $169,482 expiring in 2015.

For Alpha Trend Strategies Fund, Alternative Income Fund, Energy and Materials Fund and Dividend Equity Fund, Pyxis provides administrative services for a monthly administration fee, computed and accrued daily, at an annual rate of 0.20% of each Fund’s Average Daily Managed Assets. During the period ended September 30, 2012, Pyxis waived $7,384, $15,711, $5,469 and $15,127 in administrative fees for Alpha Trend Strategies Fund, Alternative Income Fund, Energy and Materials Fund and Dividend Equity Fund, respectively. This administration fee waiver is voluntary and is subject to termination at any time by Pyxis without notice.

Sub-Advisory Fees

GEAM is the sub-adviser of each Fund, except for Alpha Trend Strategies Fund, Alternative Income Fund, Dividend Equity Fund, Energy and Materials Fund, Trend Following Fund and

 

 

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NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

Small-Cap Equity Fund. The Alpha Trend Strategies Fund and Alternative Income Fund are sub-advised by Anchor Capital Management Group, Inc. The Dividend Equity Fund is sub-advised by Brookmont Capital Management, LLC. The Energy and Materials Fund is sub-advised by Pyxis. The Trend Following Fund is sub-advised by Incline Analytics LLC. The Small-Cap Equity Fund is sub-advised by Palisade Capital Management, LLC (“Palisade”) and Champlain Investment Partners, LLC (“Champlain”). Pyxis is responsible for allocating the assets for Small-Cap Equity Fund among the two sub-advisers. Pyxis pays each sub-adviser an investment sub-advisory fee out of the advisory fee that it receives from the respective Fund.

Distribution and Shareholder Servicing Fees

Each Fund, except for the Money Market Fund, has a distribution and shareholder service plan (each a “Plan” and collectively the “Plans”) pursuant to Rule 12b-1 under the 1940 Act. The Plans require the payment of a monthly service fee to BNY Mellon Distributors LLC, formerly known as BNY Mellon Distributors Inc. (the “Underwriter”) at an annual rate of 0.25% of the average daily net assets attributable to Class A, Class B, Class C and Class R shares of the Funds. In addition, the Plans also require the payment of a monthly distribution fee to the Underwriter at an annual rate of 0.10% of the average daily net assets attributable to Class A shares for the Alpha Trend Strategies Fund, Alternative Income Fund, Dividend Equity Fund, Energy and Materials Fund and Trend Following Fund. The Plans also require the payment of a monthly distribution fee to the Underwriter at an annual rate of 0.75% of the average daily net assets attributable to Class B and Class C shares and 0.25% of the average daily net assets attributable to Class R shares. Currently Class Y shares are not subject to a 12b-1 fee.

The Underwriter received $16,956 of front end sales charges from the sale of Class A shares and $6,244 in contingent deferred sales charges from the redemption of Class B and Class C shares of the Funds.

Fees Paid to Officers and Trustees

Each Trustee who is not an “interested person” of the Fund as defined in the 1940 Act (the “Independent Trustees”) receives an annual retainer of $150,000 payable in quarterly installments and allocated among each portfolio in the Pyxis Fund Complex based on relative net assets. The “Pyxis Fund Complex” consists of all of the registered investment companies advised by the Investment Adviser and its affiliated advisers as of the date of this report.

The Funds pay no compensation to its one interested Trustee or any of its officers, all of whom are employees of the Investment Adviser.

Note 8. Investment Transactions

Purchases and Sales of Securities

The cost of purchases and the proceeds from sales of investments, other than short-term securities and short-term options, for the year ended September 30, 2012, were as follows:

    U.S. Government Securities       Other Securities
 Fund   Purchases   Sales        Purchases   Sales

Alpha Trend Strategies Fund

    $       $         $ 59,684,140       $ 56,459,443  

Alternative Income Fund

                        115,874,516         102,941,635  

Energy and Materials Fund

                        5,265,220         5,600,841  

Trend Following Fund

                        31,717,023         36,572,476  

Core America Equity Fund*

                        21,199,500         26,761,261  

Dividend Equity Fund

                        9,719,917         498,857  

Premier Growth Equity Fund

                        23,461,557         52,393,457  

Small-Cap Equity Fund

                        8,570,234         15,892,194  

Global Equity Fund

                        21,915,989         26,057,874  

International Equity Fund

                        6,187,468         8,784,684  

Total Return Fund

      84,868,521         86,183,754           52,017,685         73,572,848  

Tax-Exempt Fund

                        9,232,108         9,331,821  

Fixed Income Fund*

      286,117,904         284,858,125           43,804,243         58,351,267  

 

* The cost of purchases excludes securities received from the Reorganization. (see Note 10).

Redemption in Kind

The GE Money Market Fund (currently known as Pyxis Money Market Fund II) had a redemption in kind on February 4, 2011, which resulted in a redemption of $580,106,723. The redemption was comprised of securities and cash in the amount of $449,659,995 and $130,446,728, respectively.

Note 9. Beneficial Interest

The number of shareholders each owning 5% or more of a Fund are listed below. The total percentage of a Fund held by such shareholders as well as percentage of a Fund held by certain directly and indirectly wholly-owned subsidiaries of the Investment Adviser and their affiliates (“Pyxis Affiliates”) at September 30, 2012 were:

 

 

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Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

    5% or Greater Shareholders
 Fund   Number   % of Fund Held 

Alpha Trend Strategies Fund

      1         5 %

Alternative Income Fund

      4         36 %

Energy and Materials Fund

      2         96 %

Trend Following Fund

      3         21 %

Dividend Equity Fund

      2         80 %

Premier Growth Equity Fund

      1         10 %

Total Return Fund

      1         5 %

Tax-Exempt Fund

      2         34 %

Money Market Fund

      1         21 %

Investment activities of these shareholders could have a material impact on the Funds

Note 10. Reorganization

On July 7, 2011, the Board of Trustees approved an agreement and plan of reorganization which provided for the transfer of all of the assets and liabilities of the Incline Capital Trend Following Fund (“Predecessor Fund”) into the Trend Following Fund (the “Reorganization”). The Trend Following Fund was created in anticipation of the Reorganization. Shareholders of the Predecessor Fund approved the Reorganization at a joint meeting held on September 23, 2011. The tax-free Reorganization was completed on September 26, 2011. The financial statements and historical information contained in the Financial Highlights and footnotes for the Trend Following Fund reflect the Predecessor Fund’s information.

 

 Trend Following Fund   

Net

Assets

   Shares
Outstanding
   Conversion
Ratio

Class A

   $8,937,978    850,495    1.0000
        

In June 2012, the Adviser undertook a comprehensive evaluation of the fund lineup as part of a broader evaluation of the Adviser’s business. Factors taken into consideration for each fund included, but were not limited to: performance relative to peers, benchmark and investment objective, market demand for the strategy, the Adviser’s ability to grow the portfolio in order to realize economies of scale and the Adviser’s ability to provide the strategy in a manner that is sufficiently differentiated from peers to provide a sustainable advantage.

Based on this review, the Adviser recommended the reorganization of funds that were not achieving the desired results with respect to the primary factors described above. The Adviser decided to consolidate these funds into other funds currently within the fund lineup to take advantage of lower costs (through economies of scale and lowered management fee) and more compelling strategies, portfolio managers, and performance.

On September 14, 2012, the Board of Trustees approved an agreement and plan of reorganization which provided for (i) the transfer of all of the assets and liabilities of the Pyxis U.S. Equity Fund into the Pyxis Core America Equity Fund, and (ii) the transfer of all of the assets and liabilities of the Pyxis Government Securities Fund and Pyxis Short-Term Government Fund into the Pyxis Fixed Income Fund. The tax-free reorganization was completed on September 28, 2012.

 

 

      Class A      Class B      Class C      Class R      Class Y  

U.S. Equity Fund
(before reorganization)*

              

Shares

     6,132,623         1,263         81,350         39         114,864   

Net Assets

   $ 163,434,133       $ 32,186       $ 2,021,107       $ 1,064       $ 3,055,407   

Net Asset Value

   $ 26.65       $ 25.48       $ 24.84       $ 26.97       $ 26.60   

Core America Fund
(before reorganization)

              

Shares

     3,062,498         2,958         149,501         101         6,045   

Net Assets

   $ 31,344,823       $ 28,686       $ 1,421,629       $ 1,050       $ 68,788   

Net Asset Value

   $ 10.24       $ 9.70       $ 9.51       $ 10.33       $ 11.38   

Core America Fund
(after reorganization)

              

Shares issued (U.S. Equity Fund)

     15,968,115         3,319         212,545         103         268,531   

Net Asset Value

   $ 10.24       $ 9.70       $ 9.51       $ 10.33       $ 11.38   

Shares Outstanding

     19,030,613         6,277         362,046         204         274,576   

Net Assets

   $ 194,778,956       $ 60,872       $ 3,442,736       $ 2,114       $ 3,124,195   

Conversion Ratios

              

U.S. Equity Fund

     2.6038         2.6275         2.6127         2.6110         2.3378   

 

* Unrealized appreciation before the Reorganization was $21,075,031.

 

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Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)

 

  
September 30, 2012    Pyxis Funds II

 

      Class A      Class B      Class C      Class R      Class Y  

Government Securities Fund (before reorganization)*

              

Shares

     9,222,757         4,168         47,242                   

Net Assets

   $ 82,280,456       $ 37,307       $ 425,448                   

Net Asset Value

   $ 8.92       $ 8.95       $ 9.01                   

Short-Term Government Fund (before reorganization)*

              

Shares

     2,622,924         6,114         265,143         88         49,175   

Net Assets

   $ 30,182,854       $ 70,192       $ 3,044,669       $ 1,008       $ 564,429   

Net Asset Value

   $ 11.51       $ 11.48       $ 11.48       $ 11.51       $ 11.48   

Fixed Income Fund (before reorganization)

              

Shares

     6,870,265         939         121,089         86         77,275   

Net Assets

   $ 89,596,842       $ 12,229       $ 1,580,935       $ 1,123       $ 1,006,543   

Net Asset Value

   $ 13.04       $ 13.04       $ 13.06       $ 13.05       $ 13.03   

Fixed Income Fund (after reorganization)

              

Shares issued (Government Securities Fund)

     6,306,262         2,860         32,564         77         43,318   

Shares issued (Short-Term Government Fund)

     2,313,320         5,381         233,044                   

Net Asset Value

   $ 13.04       $ 13.04       $ 13.06       $ 13.05       $ 13.03   

Shares Outstanding

     15,489,847         9,180         386,697         163         120,593   

Net Assets

   $ 202,060,152       $ 119,728       $ 5,051,052       $ 2,131       $ 1,570,972   

Conversion Ratios

              

Government Securities Fund

     0.6838         0.6862         0.6893                   

Short-Term Government Fund

     0.8820         0.8801         0.8789         0.8817         0.8809   

 

* Unrealized appreciation before the Reorganization was $525,402 and $ 449,057, respectively.

Assuming the acquisition had been completed on October 1, 2011, the Fund’s results of operations for the year ended September 30, 2012 would have been as follows:

 

      Core America
Equity Fund
     Fixed Income
Fund
 

Net investment income (loss)

   $ 1,759,268       $ 2,031,829   

Net realized and unrealized gain (loss) on investments

     48,171,414         5,377,448   

Net increase in net assets from operations

     49,930,682         7,409,277   

 

Note 11. New Accounting Pronouncements

In December 2011, FASB issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities”. ASU No. 2011-11 requires disclosures to make financial statements that are prepared under U.S. GAAP more comparable to those prepared under IFRS’s. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of assets and liabilities as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, ASU No. 2011-11 requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. New disclosures are required for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is evaluating the impact of ASU No. 2011-11 on the financial statements and disclosures.

Note 12. Subsequent Events

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued, and has determined that there were no subsequent events.

 

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

  

Board of Trustees and Shareholders of Pyxis Funds II:

We have audited the accompanying statements of assets and liabilities, including the portfolio of investments, of the Pyxis Alpha Trend Strategies Fund, Pyxis Alternative Income Fund, Pyxis Energy and Materials Fund, Pyxis Core America Equity Fund, Pyxis Dividend Equity Fund, Pyxis Premier Growth Equity Fund, Pyxis Small-Cap Equity Fund, Pyxis Global Equity Fund, Pyxis International Equity Fund, Pyxis Total Return Fund, Pyxis Tax-Exempt Fund, Pyxis Fixed Income Fund, and the Pyxis Money Market Fund II (collectively the “Funds”), each a fund constituting the Pyxis Funds II Trust, as of September 30, 2012, 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 periods in the two-year period then ended, the statement of cash flows for the period then ended for the Pyxis Alternative Income Fund, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We also audited the accompanying statement of assets and liabilities, including the investment portfolio, of the Pyxis Trend Following Fund, one of the funds constituting the Pyxis Investment Trust, as of September 30, 2012, statement of operations for the year then ended, the statement of changes in net assets for each of the years or periods in the two-year period then ended, and the financial highlights for the each of the years or periods in the two-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. The statement of changes in net assets for the year ended January 31, 2011, and the financial highlights for the years or periods prior to February 1, 2011, were audited by other independent registered public accountants whose report thereon dated March 28, 2011, expressed an unqualified opinion on those statements.

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, 2012, by correspondence with custodian, brokers or transfer agent, or by other appropriate auditing procedures. 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 each of the aforementioned funds of the Pyxis Funds II Trust as of September 30, 2012, the results of their operations, the changes in their net assets, the cash flow activity of the Pyxis Alternative Income Fund, and the financial highlights for the years or periods presented, in conformity with U.S. generally accepted accounting principles.

 

LOGO

Boston, Massachusetts

November 21, 2012

 

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Table of Contents

ADDITIONAL INFORMATION (unaudited)

 

  

September 30, 2012

 

  

Pyxis Funds II

 

Tax Information

For the fiscal year ended September 30, 2012, the following Funds are designating the following items with regard to earnings for the year.

 

      Long-Term
Capital Gain
Designation
   Tax Exempt
Income
  Qualified
Dividends and
Corporate
Dividends
Received
Deduction
  Qualifying
Dividend
Income
(15% tax
rate for
QDI)

Alpha Trend Strategies Fund

     $          0.00 %       0.00 %       0.00 %

Alternative Income Fund

                0.00 %       5.97 %       4.17 %

Energy and Materials Fund

                0.00 %       10.19 %       12.47 %

Trend Following Fund

       48,183          0.00 %       0.00 %       0.00 %

Core America Equity Fund

                0.00 %       100.00 %       100.00 %

Dividend Equity Fund

                0.00 %       98.24 %       100.00 %

Premier Growth Equity Fund

                0.00 %       0.00 %       0.00 %

Small-Cap Equity Fund

       2,528,613          0.00 %       0.00 %       0.00 %

Global Equity Fund

                0.00 %       0.00 %       0.00 %

International Equity Fund(1)

                0.00 %       0.00 %       100.00 %

Total Return Fund

                0.00 %       51.34 %       100.00 %

Tax Exempt Fund

                99.8 %       0.00 %       0.00 %

Fixed Income Fund

       8,748          0.00 %       0.00 %       0.00 %

Money Market Fund

                0.00 %       0.00 %       0.00 %

 

(1) For fiscal year ended 2012, the International Equity Fund intends to pass through a foreign tax credit to the shareholders. Total amount of foreign source income is $376,503. Total amount of foreign tax credit is $19,675.

 

Additional Portfolio Information

The Investment Adviser and its affiliates manage other accounts, including registered and private funds and individual accounts. Although investment decisions for the Funds are made independently from those of such other accounts, the Investment Adviser may, consistent with applicable law, make investment recommendations to other clients or accounts that may be the same or different from those made to the Funds, including investments in different levels of the capital structure of a company, such as equity versus senior loans, or that take contrary provisions in multiple levels of the capital structure. The Investment Adviser has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, this may create situations where a client could be disadvantaged because of the investment activities conducted by the Investment Adviser for other client accounts. When the Funds and one or more of such other accounts are prepared to invest in, or desires to dispose of, the same security, available investments or opportunities for each will be allocated in a manner believed by the Investment Adviser to be equitable to the Funds and such other accounts. The Investment Adviser also may aggregate orders to purchase and sell securities for the Funds and such other accounts. Although the Investment Adviser believes that, over time, the potential benefits of participating in volume transactions and negotiating lower transaction costs should benefit all accounts including the Funds, in some cases these activities may adversely affect the price paid or received by the

Funds or the size of the position obtained or disposed of by the Funds.

Disclosure of Fund Expenses

As a shareholder of the Fund you incur transaction and ongoing expenses. Transaction expenses including sales charges on purchase payments, reinvested dividends (or other distributions), and redemption fees directly reduce the investment return of the Fund. Ongoing costs include portfolio management fees, distribution and service fees, professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in U.S. dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended September 30, 2012.

Actual Expenses: The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, 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 given for your class under the heading “Expenses paid during the period.”

 

 

Annual Report  |  143


Table of Contents

ADDITIONAL INFORMATION (unaudited) (continued)

 

  
September 30, 2012    Pyxis Funds II

 

Hypothetical Example for Comparison Purposes: The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.

Please note that the expenses shown in the table do not reflect any transaction costs, such as sales charges or redemption fees.

 

      Beginning
Account
Value
10/01/11
    Ending
Account
Value
09/30/12
    Annualized
Expense
Ratio
(1)
  Expenses
Paid During
the period
(2)
  Actual
Returns
for Period

Alpha Trend Strategies Fund

Actual Fund Return

    Class A

   $ 1,000.00      $ 964.00      2.35%*   $  9.46   -3.60%

    Class C

     1,000.00        961.00      3.00%*      2.65   -3.90%

    Class R

     1,000.00        964.10      2.50%*      9.59   -3.59%

    Class Y

     1,000.00        966.10      2.00%*      8.17   -3.39%

Hypothetical 5% Return (before expenses)

    Class A

   $ 1,000.00      $ 1,013.25      2.35%   $11.83   5.00%

    Class C

     1,000.00        1,010.00      3.00%     15.08   5.00%

    Class R

     1,000.00        1,012.50      2.50%     12.58   5.00%

    Class Y

     1,000.00        1,015.00      2.00%     10.08   5.00%

Alternative Income Fund

Actual Fund Return

    Class A

   $ 1,000.00      $ 1,003.00      1.99%*   $  4.30   0.30%

    Class C

     1,000.00        1,001.20      2.53%*      5.46   0.12%

    Class R

     1,000.00        1,001.90      2.14%*      4.62   0.19%

    Class Y

     1,000.00        1,004.40      1.64%*      3.55   0.44%

Hypothetical 5% Return (before expenses)

    Class A

   $ 1,000.00      $ 1,015.05      1.99%   $10.02   5.00%

    Class C

     1,000.00        1,012.35      2.53%     12.73   5.00%

    Class R

     1,000.00        1,014.30      2.14%     10.78   5.00%

    Class Y

     1,000.00        1,016.80      1.64%      8.27   5.00%

Energy and Materials Fund

 

Actual Fund Return

    Class A

   $ 1,000.00      $ 1,070.90      2.25%*   $  7.77   7.09%

    Class C

     1,000.00        1,067.00      2.90%*      9.99   6.70%

    Class R

     1,000.00        1,069.00      2.40%*      8.28   6.90%

    Class Y

     1,000.00        1,072.00      1.90%*      6.56   7.20%

Hypothetical 5% Return (before expenses)

    Class A

   $ 1,000.00      $ 1,013.75      2.25%   $11.33   5.00%

    Class C

     1,000.00        1,010.50      2.90%     14.58   5.00%

    Class R

     1,000.00        1,013.00      2.40%     12.08   5.00%

    Class Y

     1,000.00        1,015.50      1.90%      9.57   5.00%

Trend Following Fund

Actual Fund Return

    Class A

   $ 1,000.00      $ 982.10      2.25%   $11.15   -1.79%

    Class C

   $ 1,000.00        978.90      2.90%     14.35   -2.11%
      Beginning
Account
Value
10/01/11
    Ending
Account
Value
09/30/12
    Annualized
Expense
Ratio
(1)
  Expenses
Paid During
the period
(2)
  Actual
Returns
for Period

Trend Following Fund (continued)

Hypothetical 5% Return (before expenses)

    Class A

   $ 1,000.00      $ 1,013.75      2.25%   $11.33   5.00%

    Class C

   $ 1,000.00        1,010.50      2.90%     14.58   5.00%

Core America Equity Fund

Actual Fund Return

    Class A

   $ 1,000.00      $ 1,012.90      1.42%   $  7.15   1.29%

    Class B

     1,000.00        1,008.30      2.17%     10.90   0.83%

    Class C

     1,000.00        1,008.50      2.17%     10.90   0.85%

    Class R

     1,000.00        1,011.80      1.67%      8.40   1.18%

    Class Y

     1,000.00        1,013.40      1.17%      5.89   1.34%

Core America Equity Fund

Hypothetical 5% Return (before expenses)

    Class A

   $ 1,000.00      $ 1,017.90      1.42%   $  7.16   5.00%

    Class B

     1,000.00        1,014.15      2.17%     10.93   5.00%

    Class C

     1,000.00        1,014.15      2.17%     10.93   5.00%

    Class R

     1,000.00        1,016.65      1.67%      8.42   5.00%

    Class Y

     1,000.00        1,019.15      1.17%      5.91   5.00%

Dividend Equity Fund

Actual Fund Return

    Class A

   $ 1,000.00      $ 1,047.70      2.25%   $  8.06   4.77%

    Class C

     1,000.00        1,044.50      2.90%     11.18   4.45%

    Class Y

     1,000.00        1,050.10      1.90%      7.40   5.01%

Hypothetical 5% Return (before expenses)

    Class A

   $ 1,000.00      $ 1,013.75      2.25%   $11.33   5.00%

    Class C

     1,000.00        1,010.50      2.90%     14.58   5.00%

    Class Y

     1,000.00        1,015.50      1.90%      9.57   5.00%

Premier Growth Equity Fund

Actual Fund Return

    Class A

   $ 1,000.00      $ 1,052.80      1.24%   $  6.36   5.28%

    Class B

     1,000.00        1,048.60      1.99%     10.19   4.86%

    Class C

     1,000.00        1,049.00      1.99%     10.19   4.90%

    Class R

     1,000.00        1,051.30      1.49%      7.64   5.13%

    Class Y

     1,000.00        1,054.00      0.99%      5.08   5.40%

Hypothetical 5% Return (before expenses)

    Class A

   $ 1,000.00      $ 1,018.80      1.24%   $  6.26   5.00%

    Class B

     1,000.00        1,015.05      1.99%     10.02   5.00%

    Class C

     1,000.00        1,015.05      1.99%     10.02   5.00%

    Class R

     1,000.00        1,017.55      1.49%      7.52   5.00%

    Class Y

     1,000.00        1,020.05      0.99%      5.00   5.00%

Small-Cap Equity Fund

Actual Fund Return

    Class A

   $ 1,000.00      $ 998.40      2.05%   $10.24   -0.16%

    Class B

     1,000.00        994.60      2.80%     13.96   -0.54%

    Class C

     1,000.00        993.60      2.80%     13.96   -0.64%

    Class R

     1,000.00        998.40      2.30%     11.49   -0.16%

    Class Y

     1,000.00        999.30      1.80%      9.00   -0.07%
 

 

144  |  Annual Report


Table of Contents

ADDITIONAL INFORMATION (unaudited) (continued)

 

  
September 30, 2012    Pyxis Funds II

 

      Beginning
Account
Value
10/01/11
    Ending
Account
Value
09/30/12
    Annualized
Expense
Ratio
(1)
  Expenses
Paid During
the period
(2)
  Actual
Returns
for Period

Small-Cap Equity Fund (continued)

   

Hypothetical 5% Return (before expenses)

   

    Class A

   $ 1,000.00      $ 1,014.75      2.05%   $10.33   5.00%

    Class B

     1,000.00        1,011.00      2.80%     14.08   5.00%

    Class C

     1,000.00        1,011.00      2.80%     14.08   5.00%

    Class R

     1,000.00        1,013.50      2.30%     11.58   5.00%

    Class Y

     1,000.00        1,016.00      1.80%       9.07   5.00%

Global Equity Fund

  

     

Actual Fund Return

  

     

    Class A

   $ 1,000.00      $ 985.90      1.86%   $  9.23   -1.41%

    Class B

     1,000.00        983.10      2.61%     12.94   -1.69%

    Class C

     1,000.00        982.20      2.61%     12.93   -1.78%

    Class R

     1,000.00        985.90      2.11%     10.48   -1.41%

    Class Y

     1,000.00        984.10      1.61%       7.99   -1.59%

Hypothetical 5% Return (before expenses)

   

    Class A

   $ 1,000.00      $ 1,015.70      1.86%   $  9.37   5.00%

    Class B

     1,000.00        1,011.95      2.61%     13.13   5.00%

    Class C

     1,000.00        1,011.95      2.61%     13.13   5.00%

    Class R

     1,000.00        1,014.45      2.11%     10.63   5.00%

    Class Y

     1,000.00        1,016.95      1.61%       8.12   5.00%

International Equity Fund

   

Actual Fund Return

  

     

    Class A

   $ 1,000.00      $ 997.50      2.58%   $12.88   -0.25%

    Class B

     1,000.00        993.70      3.33%     16.60   -0.63%

    Class C

     1,000.00        993.60      3.33%     16.60   -0.64%

    Class R

     1,000.00        996.70      2.83%     14.13   -0.33%

    Class Y

     1,000.00        998.40      2.33%     11.64   -0.16%

Hypothetical 5% Return (before expenses)

 

    Class A

   $ 1,000.00      $ 1,012.10      2.58%   $12.98   5.00%

    Class B

     1,000.00        1,008.35      3.33%     16.72   5.00%

    Class C

     1,000.00        1,008.35      3.33%     16.72   5.00%

    Class R

     1,000.00        1,010.85      2.83%     14.23   5.00%

    Class Y

     1,000.00        1,013.35      2.33%     11.73   5.00%

Total Return Fund

  

     

Actual Fund Return

   

    Class A

   $ 1,000.00      $ 1,017.60      1.69%   $  8.52   1.76%

    Class B

     1,000.00        1,013.60      2.44%     12.28   1.36%

    Class C

     1,000.00        1,014.20      2.44%     12.29   1.42%

    Class R

     1,000.00        1,016.50      1.94%       9.78   1.65%

    Class Y

     1,000.00        1,018.80      1.44%       7.27   1.88%

Hypothetical 5% Return (before expenses)

   

    Class A

   $ 1,000.00      $ 1,016.55      1.69%   $  8.52   5.00%

    Class B

     1,000.00        1,012.80      2.44%     12.28   5.00%

    Class C

     1,000.00        1,012.80      2.44%     12.28   5.00%

    Class R

     1,000.00        1,015.30      1.94%       9.77   5.00%

    Class Y

     1,000.00        1,017.80      1.44%       7.26   5.00%
      Beginning
Account
Value
10/01/11
    Ending
Account
Value
09/30/12
    Annualized
Expense
Ratio
(1)
  Expenses
Paid During
the period
(2)
  Actual
Returns
for Period

Tax-Exempt Fund

   

Actual Fund Return

   

    Class A

   $ 1,000.00      $ 1,038.90      1.20%   $  6.12   3.89%

    Class B

     1,000.00        1,035.50      1.95%       9.92   3.55%

    Class C

     1,000.00        1,035.20      1.95%       9.92   3.52%

    Class Y

     1,000.00        1,039.70      0.95%       4.84   3.97%

Hypothetical 5% Return (before expenses)

 

    Class A

   $ 1,000.00      $ 1,019.00      1.20%   $  6.06   5.00%

    Class B

     1,000.00        1,015.25      1.95%       9.82   5.00%

    Class C

     1,000.00        1,015.25      1.95%       9.82   5.00%

    Class Y

     1,000.00        1,020.25      0.95%       4.80   5.00%

Fixed Income Fund

  

     

Actual Fund Return

  

     

    Class A

   $ 1,000.00      $ 1,035.80      1.18%   $  6.01   3.58%

    Class B

     1,000.00        1,031.20      1.93%       9.80   3.12%

    Class C

     1,000.00        1,031.20      1.93%       9.80   3.12%

    Class R

     1,000.00        1,034.00      1.43%       7.27   3.40%

    Class Y

     1,000.00        1,036.30      0.93%       4.73   3.63%

Hypothetical 5% Return (before expenses)

   

    Class A

   $ 1,000.00      $ 1,019.10      1.18%   $  5.96   5.00%

    Class B

     1,000.00        1,015.35      1.93%       9.72   5.00%

    Class C

     1,000.00        1,015.35      1.93%       9.72   5.00%

    Class R

     1,000.00        1,017.85      1.43%       7.21   5.00%

    Class Y

     1,000.00        1,020.35      0.93%       4.70   5.00%

Money Market Fund

  

     

Actual Fund Return

   

Retail

          

Class

   $ 1,000.00      $ 1,000.00      0.17%   $  0.85   0.00%

Institutional

          

Class

     1,000.00        1,000.00      0.17%       0.85   0.00%

Hypothetical 5% Return (before expenses)

 

Retail

          

Class

   $ 1,000.00      $ 1,024.15      0.17%   $  0.86   5.00%

Institutional

          

Class

     1,000.00        1,024.15      0.17%       0.86   5.00%

 

* Expenses excludes dividends and fees on short sales. Net expense ratios including dividends and fees on short sales is 2.44% for Class A, 3.09% for Class C, 2.50% for Class R and 2.09% for Class Y for the Alpha Trend Strategies Fund. Net expense ratio would have been 2.04% for Class A, 2.58% for Class C, 2.19% for Class R and 1.69% for Class Y for the Alternative Income Fund. Net expense ratio would have been 2.28% for Class A, 2.93% for Class C, 2.40% for Class R and 1.93% for Class Y for the Energy and Materials Fund.

 

(1) Annualized, based on the Fund’s most recent fiscal half-year expenses.

 

(2) Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days (183) in the fiscal half-year, then divided by 366.
 

 

Annual Report  |  145


Table of Contents

ADDITIONAL INFORMATION (unaudited) (continued)

 

  
September 30, 2012    Pyxis Funds II

 

Approval of Pyxis Funds II Advisory and Sub-Advisory Agreements

The Trust has retained the Investment Adviser to manage the assets of each Fund pursuant to investment advisory agreements between the Investment Adviser and each such Fund (the “Advisory Agreements”). The Trust has also retained the following sub-advisers (the “Sub-Advisers” and, together with the Investment Adviser, the “Advisers”) to serve as sub-advisers to certain Funds pursuant to sub-advisory agreements (each, a “Sub-Advisory Agreement” and, together with the Advisory Agreements, the “Agreements”) between the Investment Adviser and the relevant Sub-Adviser with respect to the appropriate Fund: GE Asset Management, Inc., on behalf of Pyxis Money Market Fund II, Pyxis Premier Growth Equity Fund, Pyxis Tax Exempt Fund, Pyxis Core America Equity Fund, Pyxis Fixed Income Fund, Pyxis Global Equity Fund, Pyxis Total Return Fund; Palisade Capital Management, LLC, on behalf of Pyxis Small Cap Equity Fund; Anchor Capital Management Group, Inc., on behalf of Pyxis Alpha Trend Strategies Fund and Pyxis Alternative Income Fund; Highland Capital Management, L.P., on behalf of Pyxis Energy and Materials Fund; Incline Capital, LLC, on behalf of Pyxis Trend Following Fund; Brookmont Capital, LLC, on behalf of Pyxis Dividend Equity Fund. The Agreements have been approved by the Funds’ Board of Trustees, including a majority of the Independent Trustees.

Following an initial two-year term, each of the Agreements continues in effect from year-to-year, provided such continuance is specifically approved at least annually by the vote of holders of at least a majority of the outstanding shares of the Fund or by the Board of Trustees and, in either event, by a majority of the Independent Trustees of the Fund casting votes in person at a meeting called for such purpose.

At a meeting held on September 14, 2012, the Board of Trustees, including the Independent Trustees, most recently approved, for a one-year period commencing December 31, 2012, (a) the continuance of the Agreements with respect to Pyxis Money Market Fund II, Pyxis Premier Growth Equity Fund, Pyxis Small Cap Equity Fund, Pyxis Tax-Exempt Fund, Pyxis Core America Equity Fund, Pyxis Fixed Income Fund, Pyxis Global Equity Fund, Pyxis Total Return Fund, Pyxis Energy and Materials Fund, Pyxis Trend Following Fund and Pyxis Dividend Equity Fund; (b) the continuance of the Advisory Agreements for Pyxis Alpha Trend Strategies Fund and Pyxis Alternative Income Fund; and (c) new Sub-Advisory Agreements, in substantially the same form and with substantially the same terms as the current Sub-Advisory Agreements, for Pyxis Alpha Trend Strategies Fund and Pyxis Alternative Income Fund. As part of its review process, the Board of Trustees requested, through Fund counsel and its independent legal counsel, and received from the Advisers, various information and written materials in connection with meetings of the Board of Trustees held on August 28, 2012 and September 14, 2012, including: (1) information regarding the financial soundness of the Advisers and the profitability of the Agreements to the Advis-

ers; (2) information on the advisory and compliance personnel of the Advisers, including compensation arrangements; (3) information on the internal compliance procedures of the Advisers; (4) comparative information showing how the Funds’ proposed fees and anticipated operating expenses compare to those of other registered investment companies and private funds that follow investment strategies similar to those of the Funds; (5) information on the investment performance of the Funds, including comparisons of the Funds’ performance against that of other registered investment companies and private funds that follow investment strategies similar to those of the Funds; (6) information regarding brokerage and portfolio transactions; and (7) information on any legal proceedings or regulatory audits or investigations affecting the Advisers. The Trustees also relied on information provided in connection with the initial approval of the Agreements, as well as new information specifically relating to changes from such time, and information provided at periodic meetings of the Trustees over the course of the year. The Trustees reviewed various factors discussed in independent counsel’s legal memorandum, the detailed information provided by the Investment Adviser and Sub-Advisers and other relevant information and factors. The Trustees’ conclusions as to the approval of the Agreements were based on a comprehensive consideration of all information provided to the Trustees without any single factor being dispositive in and of itself. Some of the factors that figured particularly in the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors.

The nature, extent, and quality of the services to be provided by the Advisers

The Board of Trustees considered the portfolio management services to be provided by the Advisers under the Agreements and the activities related to portfolio management, including use of technology, research capabilities, and investment management staff. The Board of Trustees discussed the relevant experience and qualifications of the personnel providing advisory services, including the background and experience of the members of each Fund’s portfolio management team. The Trustees reviewed the management structure, assets under management and investment philosophies and processes of the Advisers. The Trustees also reviewed and discussed information regarding the Advisers’ compliance policies and procedures. With regard to Funds for which the Investment Adviser has retained a Sub-Adviser, the Trustees considered the services provided by the Investment Adviser with respect to the supervision of the respective Sub-Advisers, including the performance of periodic detailed analysis and review of the performance by the Sub-Adviser of its obligations to the Fund, including, without limitation, a review of each Sub-Adviser’s investment performance in respect of each applicable Fund; preparation and presentation of periodic reports to the Trustees regarding the investment performance of each Sub-Adviser and other information regarding each Sub-Adviser;

 

 

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ADDITIONAL INFORMATION (unaudited) (continued)

 

  
September 30, 2012    Pyxis Funds II

 

review and consideration of any changes in the personnel of the Sub-Adviser responsible for performing the Sub-adviser’s obligations and making appropriate reports to the Trustees; review and consideration of any changes in the ownership or senior management of each Sub-Adviser and making appropriate reports to the Trustees; performing periodic in-person or telephonic diligence meetings with representatives of each Sub-Adviser; and preparing recommendations with respect to the continued retention of any Sub-Adviser or the replacement of any Sub-Adviser. The Trustees concluded that the Advisers had the quality and depth of personnel and investment methods essential to performing their duties under the Agreements, and that the nature and the quality of such advisory services were satisfactory.

The Advisers’ Historical Performance in Managing the Funds

The Board of Trustees reviewed the historical performance of the Advisers and the Funds’ portfolio management teams in managing the Funds over various time periods and reflected on previous discussions regarding matters bearing on the Advisers’ performance at their meetings throughout the year. With respect to the Funds, the Trustees discussed relative performance and contrasted the performance of the Funds and their respective portfolio management teams versus that of the Funds’ peers, as represented by certain other registered investment companies that follow investment strategies similar to the Funds as well as comparable indices. With respect to each Fund, the Trustees concluded that the Fund’s performance or other relevant factors supported the renewal of the Agreement(s) relating to that Fund. In the case of each Fund that had performance that lagged that of a relevant peer group for certain (although not necessarily all) periods, the Trustees concluded that other factors relevant to performance supported renewal of the Agreements. These factors included one or more of the following: (1) that underperformance was attributable, to a significant extent, to investment decisions (such as security selection or sector allocation) by the Advisers that was reasonable and consistent with the Fund’s investment objective and policies; (2) that the Fund’s more recent performance was competitive when compared to relevant performance benchmarks or peer groups; and (3) the Fund or a particular share class had a limited operating history.

The costs of the services to be provided by the Investment Adviser and the profits to be realized by the Investment Adviser and its affiliates from the relationship with the Funds

The Board of Trustees also gave substantial consideration to the fees payable under the Agreements, the expenses the Advisers incur in providing advisory services and the profitability to the Advisers of managing the Funds, including: (1) information regarding the financial condition of the Advisers; (2) information regarding the total fees and payments received by the Advisers for their services and whether such fees are appropriate given economies of scale and other considerations; (3) information on the advisory and compliance personnel of the Advisers, including compensation arrangements; (4)  compara-

tive information showing (a) the fees payable under the Agreements versus the investment advisory fees of certain registered investment companies and private pooled vehicles that follow investment strategies similar to those of the Funds and (b) the expense ratios of the Funds versus the expense ratios of certain registered investment companies and private pooled vehicles that follow investment strategies similar to those of the Funds; (5) the relative amount of time and resources expended by the Advisers to manage particular strategies and, in the case of the Investment Adviser, in supervising the Sub-Advisers, including the responsibilities of the Investment Adviser to review each Sub-Adviser’s performance of its obligations to the Fund(s), including, without limitation, reviewing each Sub-Adviser’s investment performance in respect of each applicable Fund; reviewing and considering any changes in the personnel of the Sub-Adviser responsible for performing the Sub-adviser’s obligations to the Fund(s); reviewing and considering any changes in the ownership or senior management of each Sub-Adviser; performing periodic in-person or telephonic diligence meetings with representatives of each Sub-Adviser; preparing recommendations with respect to the continued retention of any Sub-Adviser or the replacement of any Sub-Adviser and preparing and presenting periodic reports to the Trustees regarding the foregoing supervisory activities in respect of each Sub-Adviser and other information regarding each Sub-Adviser as appropriate; (6) information regarding the total fees and payments received and the related amounts waived and/or reimbursed by the Investment Adviser for providing administrative services to the Funds under separate agreements and whether such fees are appropriate and, with respect to the Advisory Agreements, (7) the fact that the fees payable to the Investment Adviser would be reduced by amounts payable to Sub-Advisers for a given period. The Trustees also considered the so-called “fall-out benefits” to the Advisers with respect to the Funds, such as the reputational value of serving as Adviser or Sub-Adviser to the relevant Funds, potential fees paid to the Advisers’ affiliates by a Fund or portfolio companies for services provided, including administrative services provided to the Funds by the Investment Adviser pursuant to separate agreements, and the benefits of research made available to the Advisers by reason of brokerage commissions (if any) generated by the Funds’ securities transactions. After such review, the Trustees determined that the anticipated profitability rates to the Investment Adviser and Sub-Advisers with respect to the Agreements were fair and reasonable. The Trustees also took into consideration the amounts waived and/or reimbursed, if any, where expense caps or advisory fee waivers had been implemented.

The extent to which economies of scale would be realized as the Fund grows and whether fee levels reflect these economies of scale for the benefit of shareholders

The Board of Trustees considered the respective asset levels of the Funds, the information provided by the Advisers relating to their costs and information comparing the fee rates charged by the Advisers with fee rates charged by other unaffiliated

 

 

  Annual Report  |  147


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ADDITIONAL INFORMATION (unaudited) (continued)

 

  
September 30, 2012    Pyxis Funds II

 

investment advisers to their clients. The Trustees concluded that the fee structures are reasonable, and appropriately should result in a sharing of economies of scale in view of the information provided by the Advisers. The Board determined to continue to review ways, and the extent to which, economies of scale might be shared between the applicable Adviser and/or Sub-adviser on the one hand and shareholders of the Funds on the other.

Following a further discussion of the factors above and the merits of the Agreements and their various provisions, it was noted that in considering the approval of the Agreements, no single factor was determinative to the decision of the Board of Trustees. Rather, after weighing all of the factors and reasons discussed above, the Trustees, including the Independent Trustees, unanimously agreed that the Agreements, including the advisory and sub-advisory fees to be paid to the Advisers are fair and reasonable to the Funds in light of the services that the Advisers provide, the expenses that they incur and the reasonably foreseeable asset levels of the Funds.

 

 

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Table of Contents

ADDITIONAL INFORMATION (unaudited) (continued)

 

  
September 30, 2012    Pyxis Funds II

 

Trustees and Officers

The Board of Trustees (the “Board”) provides broad oversight over the operations and affairs of the Funds and protects the interests of shareholders. The Board has overall responsibility to manage and control the business affairs of the Funds, including the complete and exclusive authority to establish policies regarding the management, conduct and operation of the Funds’ business. The names and dates of birth of the Trustees and officers of the Funds, the year each was first elected or appointed to office, their principal business occupations during the last five years, the number of funds overseen by each Trustee and other directorships or trusteeships they hold are shown below. The business address for each Trustee and officer of the Funds is c/o Pyxis Capital, L.P., 200 Crescent Court, Suite 700, Dallas, TX 75201.

 

Name and

Date of Birth

  

Position(s)

with Fund

  

Term of

Office and
Length of

Time Served

  

Principal

Occupation(s)

During Past

Five Years

 

Number of
Portfolios in
Pyxis Fund
Complex

Overseen

by Trustee1

 

Other
Directorships/
Trusteeships

Held

  

Experience,

Qualifications,

Attributes, Skills for
Board Membership

      Independent Trustees       
Timothy K. Hui     (6/13/1948)    Trustee    Indefinite Term; Trustee since inception in 2006    Dean of Educational Resources since July 2012 and from July 2006 to January 2008, Vice President from February 2008 to June 2012, and Assistant Provost for Graduate Education from July 2004 to June 2006 at Cairn University.   20   None    Significant experience on this and/or other boards of directors/trustees; administrative and managerial experience; legal training and practice.
Scott F. Kavanaugh     (1/27/1961)    Trustee and Chairman of the Board    Indefinite Term; Trustee since inception in 2006    Vice-Chairman, President and Chief Executive Officer at Keller Financial Group since September 2007; Chairman and Chief Executive Officer at First Foundation Bank since September 2007; Vice Chairman, President, Chief Operating Officer and Chief Executive Officer of First Foundation, Inc. (holding company) since September 2007; and private investor since February 2004.   20   None    Significant experience on this and/or other boards of directors/trustees; significant executive experience including current and past service as chairman and chief executive officer of a bank; other financial industry and banking experience.

 

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ADDITIONAL INFORMATION (unaudited) (continued)

 

  
September 30, 2012    Pyxis Funds II

 

Trustees and Officers

 

Name and

Date of Birth

   Position(s)
with Fund
  

Term of

Office and
Length of

Time Served

  

Principal

Occupation(s)

During Past

Five Years

 

Number of
Portfolios in
Pyxis Fund
Complex

Overseen

by Trustee1

 

Other
Directorships/
Trusteeships

Held

  

Experience,

Qualifications,
Attributes, Skills for
Board Membership

      Independent Trustees       
James F. Leary     (3/9/1930)    Trustee    Indefinite Term; Trustee since inception in 2006    Managing Director, Benefit Capital Southwest, Inc. (a financial consulting firm) since January 1999.   20   Board Member of Capstone Group of Funds (7 portfolios)    Significant experience on this and/or other boards of directors/trustees; significant executive experience including past service as chief financial officer of an operating company.
Bryan A. Ward     (2/4/1955)    Trustee    Indefinite Term; Trustee since inception in 2006    Senior Manager, Accenture, LLP (a consulting firm) since January 2002.   20   None    Significant experience on this and/or other boards of directors/trustees; significant managerial and executive experience as a management consultant.
Ethan Powell(2)     (6/20/1975)    Trustee, Executive Vice President and Secretary    Indefinite Term; Trustee and Executive Vice President since June 2012; Secretary since November 2010    Chief Product Strategist since 2012; Senior Retail Fund Analyst of Highland Capital Management, L.P. from 2007 to 2012 and of Pyxis from its inception to 2012; Secretary of the funds in the Pyxis Fund Complex since November 2010; Manager in the Merger and Acquisitions Division of Ernst & Young from 1999 to 2007.   20   None    Significant experience in the financial industry; significant executive experience including current and past service as an officer of the funds in the Pyxis Fund complex; significant administrative and managerial experience.

 

1. The “Pyxis Fund Complex” consists of all of the registered investment companies overseen by the Board and advised by the Adviser or an affiliated person of the Adviser as of the date of this report.

 

2. Mr. Powell is deemed to be an “interested person” of the Funds under the 1940 Act because of his position with the Adviser.

 

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ADDITIONAL INFORMATION (unaudited) (continued)

 

  
September 30, 2012    Pyxis Funds II

 

Trustees and Officers

 

Name and

Date of Birth

  

Position(s)

with Fund

  

Term of

Office and

Length of

Time Served

  

Principal Occupation(s)

During Past Five Years

Officers

Brian Mitts

(8/26/1970)

  

Treasurer (Principal Accounting Officer and Principal

Financial

Officer)

   Indefinite Term, Treasurer since November 2010    Chief Operations Officer since 2012; Senior Retail Fund Analyst of Highland Capital Management, L.P. from 2007 to 2012 and of Pyxis from its inception to 2012; Principal Accounting Officer and Treasurer of the funds in the Pyxis Fund Complex since November 2010; Manager of Financial Reporting at HBK Investments (a hedge fund) from 2005 to 2007.

Ethan Powell

(6/20/1975)

   Trustee, Executive Vice President and Secretary    Indefinite Term; Trustee and Executive Officer since June 2012; Secretary since November 2010    Chief Product Strategist of Pyxis since 2012; Senior Retail Fund Analyst of Highland Capital Management, L.P. from 2007 to 2012 and of Pyxis from its inception to 2012; Secretary of the funds in the Pyxis Fund Complex since November 2010; Manager in the Merger and Acquisitions Division at Ernst & Young from 1999 to 2007.

Alan Head

(8/5/1973)

  

Chief

Compliance Officer

   Indefinite Term; Chief Compliance Officer since January 2012    Compliance Director at Highland Capital Management, L.P. and Chief Compliance Officer at NexBank Securities, Inc. (an affiliated broker-dealer) since November 2010; Vice President, Manager of Reporting and Research from May 2008 to September 2010 and Compliance Manager from August 2005 to May 2008 at Capital Institutional Services.

 

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IMPORTANT INFORMATION ABOUT THIS REPORT

 

  

 

Investment Adviser

Pyxis Capital, L.P.

200 Crescent Court, Suite 700

Dallas, TX 75201

 

Sub-Advisers

Anchor Capital Management Group, Inc.

15 Enterprise, Suite 450

Aliso Viejo, California 92656

 

Brookmont Capital Management, LLC

2000 McKinney Avenue, Suite 810

Dallas, Texas 75201

 

GE Asset Management Incorporated

3001 Summer Street

P.O. Box 7900

Stamford, CT 06904

 

Palisade Capital Management, LLC

One Bridge Plaza

Fort Lee, NJ 07024

 

Champlain Investment Partners, LLC

346 Shelburne Road, 6th Floor

Burlington, VT 05401

 

Incline Analytics, LLC

4790 Caughlin Parkway, Suite 214

Reno, NV 89519

 

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

4400 Computer Drive

Westborough, MA 01581

 

Underwriter

Foreside Funds Distributors LLC

400 Berwyn Park

899 Cassatt Road, 1st Floor

Berwyn, PA 19312

 

Custodian

The Bank of New York Mellon

One Wall Street

New York, NY 10286

 

Independent Registered Public

Accounting Firm

KPMG LLP

Two Financial Center

60 South Street

Boston, MA 02111

 

Fund Counsel

Ropes & Gray LLP

Prudential Tower

800 Boylston Street

Boston, MA 02199-3600

 

 

This report has been prepared for shareholders of Pyxis Alpha Trend Strategies Fund, Pyxis Alternative Income Fund, Pyxis Energy and Materials Fund, Pyxis Trend Following Fund, Pyxis Core America Equity Fund, Pyxis Dividend Equity Fund, Pyxis Premier Growth Equity Fund, Pyxis Small-Cap Equity Fund, Pyxis Global Equity Fund, Pyxis International Equity Fund, Pyxis Total Return Fund, Pyxis Tax-Exempt Fund, Pyxis Fixed Income Fund and Pyxis Money Market Fund II (collectively, the “Funds”). The Funds mail one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 1-877-665-1287 to request that additional reports be sent to you.

 

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities, and the Funds’ proxy voting records for the most recent 12-month period ended June 30, are available (i) without charge, upon request, by calling 1-877-665-1287 and (ii) on the Securities and Exchange Commission’s website at http://www.sec.gov.

 

The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov and also may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the Public Reference Room may be obtained by calling 1-800-SEC-0330. Shareholders may also obtain the Form N-Q by visiting the Funds’ website at www.pyxisais.com.

 

The Statements of Additional Information include additional information about the Funds’ Trustees and are available upon request without charge by calling 1-877-665-1287.

 

|  153


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LOGO

4400 Computer Drive

Westborough, MA 01581-1722

 

 

 

Pyxis Funds II

Annual Report, September 30, 2012

 

 

www.pyxisais.com

HLC-PFII-AR-09/12


Table of Contents

Pyxis Natural Resources Fund

 

 

Annual Report

September 30, 2012

 

 


Table of Contents

Pyxis Natural Resources Fund

Shareholder Letter

September 30, 2012

The Pyxis Natural Resources Fund (the “Fund”) is a feeder fund that invests substantially all of its assets in the Ascendant Natural Resources Fund (the “Master Fund”) which began trading on October 5, 2011. The Master Fund invests at least 80% of portfolio assets in stocks of companies involved in natural resource industries, including oil & gas, precious metals, agriculture, timber and other “hard asset” commodities. The Master Fund’s proprietary process is built on a bottom up, quantitative approach to investment research and security selection. Although the process is primarily quantitative, the most attractive opportunities are evaluated for qualitative considerations before portfolios are constructed or sell decisions are made.

Since inception through September 30, 2012 the Master Fund returned 2.59%. Top performing industries were Refining and Marketing, Fertilizers and Agriculture, and Diversified Metals and Mining. Detractors to returns were holdings in the Metal and Glass Containers, Gold, and Paper Products industries.

The Fund is designed to give investors exposure to a broad group of natural resource equities as well as a few specific commodity exposures gained indirectly through funds, ETF’s or ETN’s. Political, fiscal, and monetary policy risks often impact the outlook for natural resources and the companies who produce them. The Master Fund is constantly looking for the most attractively valued stocks in these sectors/industries that have strong earnings potential. Given the current environment the Master Fund likes precious metals and small-mid cap exploration and production companies for near term capital gain exposure.

The Fund’s adviser and Board of Directors are currently evaluating the strategic options for the Fund. During this time, the Fund is not accepting new investors.

Regards,

Pyxis Natural Resources Fund

 

1


Table of Contents

Pyxis Natural Resources Fund

PORTFOLIO REVIEW

September 30, 2012 (Unaudited)

The Fund’s performance figures* for the period ending September 30, 2012, compared to its benchmarks:

 

     Inception**-
September 30,
2012
 

Pyxis Natural Resources Fund Class Y Shares

     (0.84 )% 

S&P North American Natural Resource Sector Index

     (1.16 )% 

 

* The performance data quoted here represents past performance. The performance comparison includes reinvestment of all dividends and distributions. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would have to pay on Fund distributions or on the redemption of the Fund shares. Performance figures for periods greater than 1 year are annualized. The Fund’s total annual operating expenses, including underlying funds, is 2.12% for Class Y share per the March 20, 2012 prospectus. For performance information current to the most recent month-end, please call toll free (877) 665-1287.

 

** Commencement of operations is March 21, 2012.

S&P North American Natural Resource Sector Index is an equity benchmark that represents U.S. traded securities across a broadly defined North American Natural Resource sector. S&P Indices uses GICS® to determine a company’s classification. The index is modified-capitalization weighted, where a stock’s weight is capped at a level determined on a sector basis.

Comparison of the Change in Value of a $10,000 Investment

 

LOGO

 

2


Table of Contents

Pyxis Natural Resources Fund

PORTFOLIO REVIEW (Continued)

September 30, 2012 (Unaudited)

Top Asset Class/Industry Sector +

 

     Percent of
Net Assets
 

Energy

     69.1

Basic Materials

     14.1

Exchange Traded Funds - Commodity

     6.1

Financial

     5.9

Industrial

     3.7

Other, Cash & Cash Equivalents

     1.1
  

 

 

 
     100.0
  

 

 

 

 

+ Represents holdings of the Ascendant Natural Resources Master Fund.

 

3


Table of Contents

PYXIS NATURAL RESOURCES FUND

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2012

 

ASSETS

  

Investment in Ascendant Natural Resources Master Fund (“Master Fund”)

   $ 99   
  

 

 

 

TOTAL ASSETS

     99   
  

 

 

 

NET ASSETS

   $ 99   
  

 

 

 

Net Assets Consist Of:

  

Paid in capital [$0 par value, unlimited shares authorized]

     100   

Accumulated net realized loss from security transactions

     (3

Net unrealized appreciation of investments

     2   
  

 

 

 

NET ASSETS

   $ 99   
  

 

 

 

Net Asset Value Per Share:

  

Class Y Shares:

  

Net Assets

   $ 99.13   

Shares of beneficial interest outstanding

     8.43   
  

 

 

 

Net asset value (Net Assets ÷ Shares Outstanding), offering price and redemption price per share

   $ 11.77   
  

 

 

 

 

See accompanying notes to financial statements   4


Table of Contents

PYXIS NATURAL RESOURCES FUND

STATEMENT OF OPERATIONS

For the Period Ended September 30, 2012 *

 

INVESTMENT INCOME

  

Dividend income allocated from the Master Fund

   $ 1   

Less: Foreign withholding taxes

     —     

Interest income allocated from the Master Fund

     —     

Expenses Allocated from the Master Fund

     (1
  

 

 

 

TOTAL INVESTMENT INCOME

     —     
  

 

 

 

EXPENSES

  

Investment advisory fees

     —     

Transfer agent fees

     9,404   

Professional fees

     5,000   

Registration fees

     4,400   

Administrative services fees

     —     

Accounting services fees

     —     

Printing and postage expenses

     —     

Custodian fees

     —     

Trustees fees and expenses

     —     

Insurance expense

     —     

Other expenses

     —     
  

 

 

 

TOTAL EXPENSES

     18,804   

Less: Fees waived by the Advisor

     (18,804
  

 

 

 

NET EXPENSES

     —     
  

 

 

 

NET INVESTMENT LOSS

     —     
  

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

  

Net realized loss from security transactions allocated from the Master Fund

     (3
  

 

 

 

Net change in unrealized appreciation of:

  

Investments allocated from the Master Fund

     2   
  

 

 

 
     2   
  

 

 

 

NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS

     (1
  

 

 

 

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

   $ (1
  

 

 

 

 

* The Pyxis Natural Resources Fund commenced operations on March 21, 2012

 

See accompanying notes to financial statements   5


Table of Contents

PYXIS NATURAL RESOURCES FUND

STATEMENT OF CHANGES IN NET ASSETS

 

     Period Ended
September 30
2012**
 

FROM OPERATIONS

  

Net investment loss

   $ —     

Net realized loss from security transactions

     (3

Net change in unrealized appreciation of investments

     2   
  

 

 

 

Net increase in net assets resulting from operations

     (1
  

 

 

 

FROM SHARES OF BENEFICIAL INTEREST

  

Proceeds from shares sold:

  

Class Y

     100   
  

 

 

 

Net increase in net assets resulting from shares of beneficial interest

     100   
  

 

 

 

TOTAL INCREASE IN NET ASSETS

     99   

NET ASSETS

  

Beginning of Period

     —     
  

 

 

 

End of Period*

   $ 99   
  

 

 

 

*Includes undistributed net investment income of:

   $ —     
  

 

 

 

SHARE ACTIVITY

  

Class Y:

  

Shares Sold

     8.43   
  

 

 

 

Net increase in shares of beneficial interest outstanding

     8.43   
  

 

 

 

 

** The Pyxis Natural Resources Fund commenced operations on March 21, 2012

 

See accompanying notes to financial statements   6


Table of Contents

PYXIS NATURAL RESOURCES FUND

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout The Period

 

     Period Ended
September 30,
 

Class Y Shares

   2012 (1)  

Net asset value, beginning of period

   $ 11.87   
  

 

 

 

Activity from investment operations:

  

Net investment loss (2)

     —     

Net realized and unrealized loss on investments

     (0.10
  

 

 

 

Total from investment operations

     (0.10
  

 

 

 

Net asset value, end of period

   $ 11.77   
  

 

 

 

Total return (3)

     (0.84 %)(7) 
  

 

 

 

Net assets, at end of period (000s)

   $ 99      (8)
  

 

 

 

Ratio of gross expenses to average net assets (4)(6)

     38,189.25 % (5) 

Ratio of net expenses to average net assets (6)

     1.90 % (5) 

Ratio of net investment loss to average net assets (6)

     0.00 % (5) 

Portfolio Turnover Rate (9)

     92 % (7)

 

(1) The Pyxis Natural Resources Fund’s Class Y shares commenced operations on March 21, 2012.
(2) Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period.
(3) Total returns shown exclude the effect of applicable sales charges.
(4) Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the Advisor.
(5) Annualized.
(6) Does not include the expenses of other investment companies in which the Fund invests except for the Master Fund.
(7) Not annualized.
(8) Actual net assets, not truncated.
(9) Calculated based on investment activity of Ascendant Natural Resources Master Fund.

 

See accompanying notes to financial statements   7


Table of Contents

PYXIS NATURAL RESOURCES FUND

NOTES TO FINANCIAL STATEMENTS

September 30, 2012

 

1. ORGANIZATION

The Pyxis Natural Resources Fund (the “Fund”) is a non-diversified series of shares of beneficial interest of Pyxis Funds II (the “Trust”), a statutory trust organized under the laws of the State of Massachusetts on August 10, 1992, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Fund’s investment objective is to seek growth of capital.

The Fund is a “feeder” fund that currently invests all of its assets in the Ascendant Natural Resources Master Fund, a series of Northern Lights Fund Trust (the “Master Fund”), which has the same investment objective and strategies as the Fund. Generally all investments are made at the Master Fund level. This structure is sometimes called a “master-feeder” structure. The Fund’s investment results will correspond directly to the investment results of the Master Fund. As of September 30, 2012, the Fund’s proportionate interest in the net assets of the Master Fund was 0%.

The performance of the Fund is directly affected by the performance of the Master Fund. The financial statements of the Master Fund, including its Portfolio Holdings, are attached to this report and should be read in conjunction with the Fund’s financial statements.

The Fund currently offers Class A, Class C, Class R and Class Y shares. Class C, Class R and Class Y shares are offered at net asset value. Class A shares are offered at net asset value plus a maximum sales charge of 5.75%. Each class represents an interest in the same assets of the Fund and classes are identical except for differences in their sales charge structures and ongoing service and distribution charges. All classes of shares have equal voting privileges except that each class has exclusive voting rights with respect to its service and/or distribution plans. The Fund’s income, expenses (other than class specific distribution fees) and realized and unrealized gains and losses are allocated proportionately each day based upon the relative net assets of each class.

 

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the Fund in preparation of the financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

Securities valuation – The Fund records its investment in the Master Fund at fair value, which generally represents its proportionate ownership of the Members’ Capital of the Master Fund. Valuation of the investments of the Master Fund is further discussed in Note 2 to its financial statements which are attached herein.

 

8


Table of Contents

PYXIS NATURAL RESOURCES FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

September 30, 2012

 

The Fund utilizes various methods to measure the fair value of all of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Fund has the ability to access.

Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of September 30, 2012 for the Fund’s assets measured at fair value:

 

Assets    Level 1      Level 2    Level 3      Total  

Investment in the Master Fund

     $—         $99      $—           $99   

Total

     $—         $99      $—           $99   

There were no transfers into or out of Level 1 and Level 2 during the current period presented. It is the Fund’s policy to record transfers into or out of Level 1 and Level 2 at the end of the reporting period.

The Fund did not hold any Level 3 securities during the period.

 

9


Table of Contents

PYXIS NATURAL RESOURCES FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

September 30, 2012

 

Security transactions and related income – The Fund records its proportionate share of the Master Fund’s income, expenses, and realized and unrealized gains and losses. Income and expenses that are directly attributable to the Fund are recorded on an accrual basis as earned or as incurred.

Dividends and distributions to shareholders – Dividends from net investment income, if any, are declared and paid quarterly. Distributable net realized capital gains, if any, are declared and distributed annually. Dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either temporary (e.g., deferred losses) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends and distributions to shareholders are recorded on ex-dividend date.

Federal Income Taxes – The Fund intends to continue to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no provision for Federal income tax is required. The 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 Fund’s 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 (none), or expected to be taken in the Fund’s 2012 tax returns. The Fund identified its major tax jurisdictions as U.S. Federal, Massachusetts and foreign jurisdictions where the Fund makes significant investments; however, the Fund is 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.

Indemnification – The Trust indemnifies its officers and trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the risk of loss due to these warranties and indemnities appears to be remote.

 

3. INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH AFFILIATES

The business activities of the Fund are overseen by the Board, which is responsible for the overall management of the Fund. Pyxis Capital, L.P. serves as the Fund’s Investment Advisor (the “Advisor”).

Pursuant to an Advisory Agreement with the Fund, the Advisor, under the oversight of the Board, directs the daily operations of the Fund and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Advisor, the Fund pays the Advisor a management fee, computed and accrued daily and paid monthly, at an annual rate of 0.30% of the Fund’s average daily managed assets and an administrative fee of 0.20% of the Fund’s average daily managed assets, computed and accrued daily. Under the terms of the Master Fund Advisory Agreement, the Ascendant Advisors, LLC is entitled to

 

10


Table of Contents

PYXIS NATURAL RESOURCES FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

September 30, 2012

receive, on a monthly basis, an annual advisory fee equal to 0.85% of the Ascendant Natural Resources Master’s Fund’s average daily assets, making the total combined annual fee the Adviser receives from the Natural Resources Fund, master and feeder, 1.35%.

Pyxis and Ascendant have agreed to a voluntarily waive a portion of advisory and administration fees or reimburse the Fund for other expenses to the extent necessary so that the total expenses incurred by the Fund (excluding front-end or contingent deferred loads, brokerage fees and commissions, acquired fund fees and expenses, borrowing costs such as interest and dividend expense on securities sold short, or extraordinary expenses, such as litigation, not incurred in the ordinary course of the Fund’s business) do not exceed 2.25% per annum for Class A average daily net assets, 2.90% per annum of Class C average daily net assets, 2.40% per annum for Class R average daily net assets and 1.90% per annum for Class Y average daily net assets. As of September 30, 2012, the Advisor has $18,804 of waived/reimbursed expenses.

The Board has adopted a Distribution Plan and Agreement pursuant to Rule 12b-1 under the 1940 Act (the “Plan”). The Plan provides that a monthly service and/or distribution fee is calculated by the Fund at annual rates of 0.35%, 1.00% and 0.50% of the average daily net assets attributable to Class A, Class C and R shares, respectively, and is paid to BNY Mellon Distributors LLC (the “Underwriter”), to provide compensation for ongoing distribution-related activities or services and/or maintenance of the Fund’s shareholder accounts, not otherwise required to be provided by the Advisor. The Plan is a compensation plan, which means that compensation is provided regardless of 12b-1 expenses incurred.

 

4. TAX COMPONENTS OF CAPITAL

As of September 30, 2012, the components of accumulated earnings/(deficit) on a tax basis were as follows:

 

Undistributed

Ordinary

Income

     Undistributed
Long-Term
Gains
     Capital Loss
Carry
Forwards
    Post October
& Late Year
Losses
     Unrealized
Appreciation/
(Depreciation)
     Total
Accumulated
Earnings/(Deficits)
 
$ —         $ —         $ (3   $ —         $ 2       $ (1

At September 30, 2012, the Fund had capital loss carry forwards for federal income tax purposes available to offset future capital gains as follows:

 

Short-Term

     Long-Term      Total     

Expiration

$ 3       $ —         $ 3       Non-Expiring

 

5. CONTROL OWNERSHIP

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a Fund creates presumption of control of the Fund, under Section 2(a) 9 of the Act. As of September 30, 2012, Pyxis Capital, L.P. held approximately 100% of the voting securities of Class Y shares.

 

11


Table of Contents

PYXIS NATURAL RESOURCES FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

September 30, 2012

 

6. NEW ACCOUNTING PRONOUNCEMENTS

In December 2011, FASB issued ASU No. 2011-11 related to disclosures about offsetting assets and liabilities. The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The ASU is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The guidance requires retrospective application for all comparative periods presented. Management is currently evaluating the impact this amendment may have on the Fund’s financial statements.

 

7. SUBSEQUENT EVENTS

The Fund is required to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the Statement of Assets and Liabilities. For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Fund is required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made. Management has determined that there were no subsequent events to report through the issuance of these financial statements.

The Fund’s adviser and Board of Directors are currently evaluating the strategic options for the Fund. During this time, the Fund is not accepting new investors.


Table of Contents

Report of Independent Registered Public Accounting Firm

Board of Trustees and Shareholders of

Pyxis Funds II:

We have audited the accompanying statement of assets and liabilities of the Pyxis Natural Resources Fund (the “Fund”), a fund constituting the Pyxis Funds II Trust, as of September 30, 2012, and the related statement of operations, the statement of changes in net assets, and the financial highlights for the period from March 21, 2012 (commencement of operations) to September 30, 2012. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit 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, 2012, by correspondence with custodian, brokers or transfer agent, or by other appropriate auditing procedures. 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 audit provides 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 Pyxis Natural Resources Fund as of September 30, 2012, the results of its operations, the changes in net assets, and the financial highlights for the period presented, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

November 29, 2012

 

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PYXIS NATURAL RESOURCES FUND

EXPENSE EXAMPLES

September 30, 2012 (Unaudited)

As a shareholder of the Pyxis Natural Resources Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases of shares; (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Pyxis Natural Resources Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2012 through September 30, 2012.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The “Hypothetical” line in the table below provides information about hypothetical account values and hypothetical expenses based on the Pyxis Natural Resources Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the 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. Therefore, 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.

 

Actual    Beginning
Account Value

4/1/12
     Ending
Account Value
9/30/12
     Expenses Paid
During Period*
4/1/12 –  9/30/12
     Expense Ratio
During Period**
4/1/12 – 9/30/12
 

Class Y

   $ 1,000.00       $ 987.40       $ 9.44         1.90
Hypothetical (5% return before expenses)    Beginning
Account  Value

4/1/12
     Ending
Account Value
9/30/12
     Expenses Paid
During  Period*
4/1/12 –  9/30/12
     Expense Ratio
During  Period**
4/1/12 – 9/30/12
 

Class Y

   $ 1,000.00       $ 1,015.50       $ 9.57         1.90

 

* Expenses are equal to the average account value over the period, multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the period (183) divided by the number of days in the fiscal year (366).
** Annualized.

 

14


Table of Contents

PYXIS NATURAL RESOURCES FUND

SUPPLEMENTAL INFORMATION (Unaudited)

September 30, 2012

Approval of Investment Advisory Agreement and Participation Agreement for the Natural Resources Fund

The Natural Resources Fund (for the purposes of this section, the “Fund”) has retained Pyxis (the “Investment Adviser”) to manage its assets pursuant to an Investment Advisory Agreement between Pyxis Funds II (the “Trust”), on behalf of the Fund, and the Investment Adviser (the “Advisory Agreement”). Additionally, in connection with the Fund’s operation as a “feeder” fund that invests substantially all of its assets in the Ascendant Natural Resources Master Fund (the “Master Fund”), the Trust, on behalf of the Fund, has entered into a participation agreement (the “Participation Agreement”) with the Investment Adviser and Ascendant Advisors, LLC (“Ascendant”), the investment adviser to the Master Fund. Pursuant to the Participation Agreement, Ascendant has agreed to waive a portion of its management fees to be charged to the Master Fund to the extent necessary to maintain the Fund’s total expense ratios at specified levels, among other things. The Advisory Agreement and Participation Agreement have been approved by the Fund’s Board of Trustees, including a majority of the Independent Trustees.

Following an initial term of two years, the Advisory Agreement continues in effect from year-to-year provided such continuance is specifically approved at least annually by the vote of holders of at least a majority of the outstanding shares of the Fund, or by the Board of Trustees, and, in either event, by a majority of the Independent Trustees of the Fund casting votes in person at a meeting called for such purpose. Following an initial term of two years, the Participation Agreement is automatically renewed every year upon approval of the board of trustees of the Master Fund of the investment advisory agreement between the Master Fund and Ascendant, and approval of the Board of Trustees of the Fund of the Advisory Agreement. The Board of Trustees, including the Independent Trustees, approved the Advisory Agreement and Participation Agreement at a meeting held on September 9, 2011. As part of its review process, the Board of Trustees requested, through Fund counsel and the Board of Trustees’ independent legal counsel, and received from the Investment Adviser and Ascendant written and oral information, including: (1) information regarding the financial soundness of each of the Investment Adviser and Ascendant; (2) information on the advisory and compliance personnel of the Investment Adviser and Ascendant, including compensation arrangements; (3) information on the internal compliance procedures of the Investment Adviser and Ascendant; (4) comparative information showing how the Fund’s respective proposed fees and anticipated operating expenses compare to those of (a) other registered investment companies and private funds that follow investment strategies similar to those of the Fund and (b) other private and registered pooled investment vehicles or accounts managed by the Investment Adviser and Ascendant, as well as the performance of such vehicles and accounts; (5) information regarding brokerage and portfolio transactions; and (6) information on legal proceedings or regulatory audits or investigations affecting the Investment Adviser or Ascendant. The Trustees reviewed various factors discussed in the legal memorandum from the Independent Trustees’ independent legal counsel, the detailed information provided by the Investment Adviser and Ascendant and other information and factors they deemed relevant.

The Trustees considered information about the Fund and the Master Fund, as well as information about a separate feeder fund managed by Ascendant that also invests substantially all of its assets

 

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Table of Contents

PYXIS NATURAL RESOURCES FUND

SUPPLEMENTAL INFORMATION (Unaudited) (Continued)

September 30, 2012

in the Master Fund (the “Ascendant Feeder Fund”). The Trustees’ conclusions as to the approval of the Advisory Agreement and the Participation Agreement were based on comprehensive consideration of all information provided to the Trustees, without any single factor being dispositive in and of itself. Some of the factors that figured particularly in the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, giving different weight to various factors.

The nature, extent, and quality of the services to be provided by the Investment Adviser and Ascendant

The Board of Trustees considered the portfolio management to be provided by the Investment Adviser under the Advisory Agreement to the Fund and by Ascendant to the Master Fund and the activities related to portfolio management, including use of technology, research capabilities, and investment management staff. The Board of Trustees discussed the experience and qualifications of the personnel who will be overseeing the provision of advisory services to be provided by personnel of the Investment Adviser and Ascendant. The Trustees reviewed the management structure, expected assets under management and investment philosophies and processes of the Investment Adviser and Ascendant. The Trustees also reviewed and/or discussed the Investment Adviser’s and Ascendant’s compliance policies and procedures. The Board of Trustees also considered the administrative services to be provided by the Investment Adviser under a separate administration agreement (the “Administration Agreement”), including compliance and accounting services. The Trustees concluded that each of the Investment Adviser and Ascendant had the quality and depth of personnel and investment methods essential to performing its respective duties under the Advisory Agreement and the Participation Agreement, and that the nature and the quality of such advisory services were satisfactory.

The costs of the services to be provided by the Investment Adviser and Ascendant and the profits and other benefits to be realized by the Investment Adviser and Ascendant and their respective affiliates from the relationship with the Fund

The Board of Trustees gave substantial consideration to the fees payable under the Advisory Agreement and the Participation Agreement, including: (1) information regarding the financial condition of the Investment Adviser and Ascendant; (2) information regarding the total fees and payments to be received by the Investment Adviser from the Fund, and those to be received by the Master Fund from Ascendant, and whether such fees are appropriate given economies of scale and other considerations; (3) information on the advisory and compliance personnel of the Investment Adviser and Ascendant, including compensation arrangements; (4) information on the internal compliance procedures of the Investment Adviser and Ascendant; (5) information regarding brokerage and portfolio transactions; (6) information on any legal proceedings or regulatory audits or investigation affecting the Investment Adviser and any affecting Ascendant; (7) comparative information showing (a) the fees payable under the Advisory Agreement versus the investment advisory fees of certain registered investment companies and private pooled vehicles that follow investment strategies similar to those of the Fund, and (b) the expected expense ratios of the Fund versus the expense ratios of certain registered investment companies and private pooled vehicles that follow investment strategies similar to those of the Fund. In this

 

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Table of Contents

PYXIS NATURAL RESOURCES FUND

SUPPLEMENTAL INFORMATION (Unaudited) (Continued)

September 30, 2012

regard, the Trustees noted that the Investment Adviser proposed to monitor the performance of the Fund in a manner akin to the Investment Adviser’s monitoring of a sub-advisory relationship and to ensure compliance with applicable rules and regulations, as well as monitoring whether it continued to be appropriate to invest in the Master Fund. The Investment Adviser noted that it did not manage other registered investment companies or private pooled investment vehicles that follow investment strategies similar to those of the Fund. The Trustees also considered the so-called “fall-out benefits” to the Adviser and to Ascendant with respect to the Fund, such as the reputational value of serving as the Adviser to the Fund and potential fees paid to the Adviser’s or Ascendant’s affiliates by the Fund or the Master Fund for services provided. The Trustees also considered the administrative fees payable by the Fund to the Investment Adviser under the Administration Agreement, and noted the significant services to be received, such as compliance, accounting and operational services and furnishing office space and facilities for the Fund, and the provision of personnel satisfactory to the Board of Trustees to serve as officers of the Fund, and that these services would be beneficial to the Fund. After reviewing these and related factors, the Trustees determined that the fees payable to the Investment Adviser under the Advisory Agreement, and the fees payable to Ascendant under the Participation Agreement, represent fair and reasonable compensation in light of the services being provided by the Investment Adviser to the Fund, and by Ascendant to the Fund, through its advisory services to the Master Fund.

The extent to which economies of scale would be realized as the Fund grows and whether fee levels reflect these economies of scale for the benefit of shareholders

The Board of Trustees considered the effective fees under the Advisory Agreement and the Participation Agreement as a percentage of assets at different asset levels, and possible economies of scale to the Investment Adviser and Ascendant. The Trustees considered the anticipated asset level of the Fund, the information provided by the Investment Adviser and Ascendant relating to estimated costs, and information comparing the fee rates to be charged by the Investment Adviser with fee rates charged by other unaffiliated investment advisers to their clients. The Trustees considered whether breakpoints in the fee under the Advisory Agreement and the Participation Agreement would be appropriate with respect to the Fund in light of the Fund’s anticipated assets and current fee structure, including any waivers, and determined not to recommend any breakpoints for the Fund at this time, given the Fund’s anticipated size and the proposed fee arrangements with Ascendant. The Trustees concluded that the fee structures are reasonable, and appropriately should result in a sharing of economies of scale for the future in view of the information provided by the Investment Adviser and Ascendant. The Trustees noted that the relatively low projected assets of the Fund implied that economies of scale would not be recognized by the Adviser and Ascendant in the short run.

Following a further discussion of the factors deemed material, including those described above and the merits of each of the Advisory Agreement and Participation Agreement and its various provisions, the Board of Trustees, including all of the Independent Trustees, determined that each of the Advisory Agreement and Participation Agreement, including the advisory fees to be paid to the Investment Adviser under the Advisory Agreement and the fee arrangement under the Participation Agreement, respectively, are fair and reasonable to the Fund, and unanimously voted to approve each of the Advisory Agreement and Participation Agreement for an initial term of two years from the date of its execution.

 

17


Table of Contents

PYXIS NATURAL RESOURCES FUND

TRUSTEE AND OFFICERS (Unaudited)

September 30, 2012

The Board of Trustees (the “Board”) provides broad oversight of the operations and affairs of the Funds and protects the interests of shareholders. The Board has overall responsibility to manage and control the business affairs of the Funds, including the complete and exclusive authority to establish policies regarding the management, conduct and operation of the Funds’ business. The names and dates of birth of the Trustees and officers of the Funds, the year each was first elected or appointed to office, their principal business occupations during the last five years, the number of funds overseen by each Trustee and other directorships or trusteeships they hold are shown below. The business address for each Trustee and officer of the Funds is c/o Pyxis Capital, L.P., 200 Crescent Court, Suite 700, Dallas, Texas 75201.

 

Name and

Date of Birth

 

Position(s)

with the

Fund

 

Term of

Office

and Length

of Time

Served

 

Principal
Occupation(s)
During Past

Five Years

 

Number of
Portfolios n

Pyxis Fund

Complex

Overseen by
Trustee1

 

Other

Directorships/
Trusteeships

Held

 

Experience,
Qualifications,
Attributes, Skills

for Board
Membership

INDEPENDENT TRUSTEES
Timothy K. Hui (6/13/1948)   Trustee   Indefinite Term; Trustee since inception in 2006   Dean of educational Resources since July 2012 and from July 2006 to January 2008, Vice President from February 2008 to June 2012, and Assistant Provost for Graduate Education from July 2004 to June 2006 at Cairn University.   20   None   Significant experience on this and/or other boards of directors/trustees; administrative and managerial experience; legal training and practice.
Scott F. Kavanaugh (1/27/1961)   Trustee and Chairman of the Board   Indefinite Term; Trustee since inception in 2006; Chairman of the Board since June 2012   Vice- Chairman, President and Chief Executive Officer at Keller Financial Group since September 2007; Chairman and Chief Executive Officer at First   20   None   Significant experience on this and/or other boards of directors/trustees; significant executive experience including current and past service as chairman and chief executive officer of a bank; other financial industry and banking experience.

 

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PYXIS NATURAL RESOURCES FUND

TRUSTEE AND OFFICERS (Unaudited) (Continued)

September 30, 2012

 

Name and

Date of Birth

 

Position(s)

with the

Fund

 

Term of

Office

and Length

of Time

Served

 

Principal
Occupation(s)
During Past

Five Years

 

Number of
Portfolios n

Pyxis Fund

Complex

Overseen by
Trustee1

 

Other

Directorships/
Trusteeships

Held

 

Experience,
Qualifications,
Attributes, Skills

for Board
Membership

      Foundation Bank since September 2007; Vice- Chairman, President, Chief Operating Officer and Chief Executive Officer of First Foundation, Inc. (holding company) since September 2007; and private investor since February 2004.      
James F. Leary (3/9/1930)   Trustee   Indefinite Term; Trustee since inception in 2006   Managing Director, Benefit Capital Southwest, Inc. (a financial consulting firm) since January 1999.   20   Board Member of Capstone Group of Funds (7 portfolios)   Significant experience on this and/or other boards of directors/trustees; significant executive experience including past service as chief financial officer of an operating company; audit committee financial expert.
Bryan A. Ward (2/4/1955)   Trustee   Indefinite Term; Trustee since inception in 2006   Senior Manager, Accenture, LLP (a consulting firm) since January 2002.   20   None   Significant experience on this and/or other boards of directors/trustees; significant managerial and executive experience; significant experience as a management consultant

 

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Table of Contents

PYXIS NATURAL RESOURCES FUND

TRUSTEE AND OFFICERS (Unaudited) (Continued)

September 30, 2012

 

Name and

Date of Birth

 

Position(s)

with the

Fund

 

Term of

Office

and Length

of Time

Served

 

Principal
Occupation(s)
During Past

Five Years

 

Number of
Portfolios n

Pyxis Fund

Complex

Overseen by
Trustee1

 

Other

Directorships/
Trusteeships

Held

 

Experience,
Qualifications,
Attributes, Skills

for Board
Membership

INTERESTED TRUSTEE
Ethan Powell2 (6/20/1975)   Trustee; Executive Vice President and Secretary   Indefinite Term; Trustee and Executive Vice President since June 2012; Secretary since November 2010   Senior Retail Fund Analyst of Highland Capital Management, L.P. since 2007 and of Pyxis since its inception and Secretary of the funds in the Pyxis Fund Complex since November 2010; Manager in the Merger and Acquisitions Division at Ernst &Young from 1999 to 2007.   20   None   Significant experience in the financial industry; Significant executive experience including current and past service as an officer of funds in the Pyxis Fund Complex; significant administrative and managerial experience.

 

OFFICERS

Name and

Date of Birth

 

Position(s)

with the Fund

 

Term of Office and

Length of

Time Served

 

Principal Occupation(s)

During Past Five Years

Brian Mitts (8/26/1970)   Treasurer (Principal Accounting Officer and Principal Financial Officer)   Indefinite Term; Treasurer since November 2010   Senior Retail Fund Analyst of Highland Capital Management, L.P. since 2007 and Pyxis since its inception; Principal Accounting Officer and Treasurer of the funds in the Pyxis Fund Complex since November 2010; Manager of Financial Reporting at HBK Investments (a hedge fund) from 2005 to 2007.
Ethan Powell (6/20/1975)   Trustee; Executive Vice President and Secretary   Indefinite Term; Trustee and Executive Vice President since June 2012; Secretary since November 2010   Senior Retail Fund Analyst of Highland Capital Management, L.P. since 2007 and Pyxis since its inception; and Secretary of the funds in the Pyxis Fund Complex since November 2010; Manager in the Merger and Acquisitions Division at Ernst & Young from 1999 to 2007.

 

20


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PYXIS NATURAL RESOURCES FUND

TRUSTEE AND OFFICERS (Unaudited) (Continued)

September 30, 2012

 

Name and

Date of Birth

 

Position(s)

with the Fund

 

Term of Office and

Length of

Time Served

 

Principal Occupation(s)

During Past Five Years

        Alan Head (8/5/1973)   Chief Compliance Officer   Indefinite Term; Chief Compliance Officer since January 2012   Compliance Director at Highland Capital Management, L.P. and Chief Compliance Officer of NexBank Securities, Inc. (an affiliated broker-dealer) since November 2010; Vice President, Manager of Reporting and Research from May 2008 to September 2010 and Compliance; Manager from August 2005 to May 2008 at Capital Institutional Services.

 

1 The “Pyxis Fund Complex” consists of all of the registered investment companies overseen by the Board and advised by the Adviser or an affiliated person of the Adviser as of the date of this report.
2 Mr. Powell is deemed to be an “interested person” of the Funds under the Investment Company Act of 1940 because of his position with Pyxis Capital, L.P.

 

21


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PROXY VOTING POLICY

Information regarding how each Fund voted proxies relating to portfolio securities for the most recent twelve month period ended June 30 as well as a description of the policies and procedures that each Fund uses to determine how to vote proxies is available without charge, upon request, by calling 1-877-665-1287 or by referring to the Security and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

PORTFOLIO HOLDINGS

Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available 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 (1-800-SEC-0330). The information on Form N-Q is available without charge, upon request, by calling 1-877-665-1287.

INVESTMENT ADVISOR AND ADMINISTRATOR

Pyxis Capital, L.P.

200 Crescent Court. Suite 700

Dallas, TX 75201


Table of Contents

 

LOGO

ASCENDANT NATURAL RESOURCES MASTER FUND

Annual Report

September 30, 2012

www.ascendantfunds.com

1 (855) 527-2363


Table of Contents

Ascendant Natural Resources Master Fund

PORTFOLIO OF INVESTMENTS

September 30, 2012

 

Shares

        Value  
   COMMON STOCKS - 92.8%   
   CHEMICALS - 3.7%   

652

   CF Industries Holdings, Inc.    $ 144,900   
     

 

 

 
   MACHINERY-DIVERSIFIED - 2.1%   

990

   Deere & Co.      81,665   
     

 

 

 
   MINING - 10.5%   

2,250

   AngloGold Ashanti Ltd.      78,862   

2,327

   Freeport-McMoRan Copper & Gold, Inc.      92,103   

1,738

   Goldcorp, Inc.      79,687   

1,665

   Newmont Mining Corp.      93,257   

3,900

   Yamana Gold, Inc.      74,529   
     

 

 

 
        418,438   
     

 

 

 
   OIL & GAS - 53.3%   

1,192

   Anadarko Petroleum Corp.      83,345   

1,249

   Apache Corp.      108,001   

3,567

   BP PLC - ADR      151,098   

2,972

   Canadian Natural Resources Ltd.      91,508   

1,237

   Chevron Corp.      144,185   

461

   CNOOC Ltd. - ADR      93,459   

1,811

   ConocoPhillips      103,553   

4,963

   Denbury Resources, Inc. *      80,202   

2,037

   Diamond Offshore Drilling, Inc.      134,055   

1,418

   EOG Resources, Inc.      158,887   

1,147

   Exxon Mobil Corp.      104,893   

11,344

   Halcon Resources Corp. *      83,152   

2,374

   HollyFrontier Corp.      97,975   

3,004

   Imperial Oil Ltd.      138,274   

2,779

   Marathon Oil Corp.      82,175   

1,237

   Noble Energy, Inc.      114,682   

1,035

   Occidental Petroleum Corp.      89,072   

1,395

   Royal Dutch Shell PLC      96,827   

4,906

   Suncor Energy, Inc.      161,162   
     

 

 

 
        2,116,505   
     

 

 

 
   OIL & GAS SERVICES - 11.1%   

382

   Core Laboratories NV      46,405   

2,217

   Halliburton Co.      74,691   

4,468

   Helix Energy Solutions Group, Inc. *      81,630   

1,969

   National Oilwell Varco, Inc.      157,737   

1,001

   Oil States International, Inc. *      79,539   
     

 

 

 
        440,002   
     

 

 

 

 

See accompanying notes to financial statements   1


Table of Contents

Ascendant Natural Resources Master Fund

PORTFOLIO OF INVESTMENTS (Continued)

September 30, 2012

 

Shares

        Value  
   PACKAGING & CONTAINERS - 1.6%   

1,789

   Packaging Corp. of America    $ 64,941   
     

 

 

 
   PIPELINES - 4.6%   

1,451

   Enterprise Products Partners LP      77,774   

1,204

   Plains All American Pipeline LP      106,193   
     

 

 

 
        183,967   
     

 

 

 
   REITS - 5.9%   

2,329

   Rayonier, Inc.      114,144   

4,546

   Weyerhaeuser Co.      118,832   
     

 

 

 
        232,976   
     

 

 

 
   TOTAL COMMON STOCKS (Cost $3,435,817)      3,683,394   
     

 

 

 
   EXCHANGE TRADED FUNDS - 6.1%   
   COMMODITY FUNDS - 6.1%   

2,433

   iShares Silver Trust *      81,457   

945

   SPDR Gold Shares *      162,559   
     

 

 

 
   TOTAL EXCHANGE TRADED FUNDS (Cost $232,667)      244,016   
     

 

 

 
   SHORT-TERM INVESTMENT - 1.7%   
   MONEY MARKET FUND - 1.7%   

65,539

   Dreyfus Cash Management, to yield 0.24% ** (Cost $65,539)      65,539   
     

 

 

 
   TOTAL INVESTMENTS - 100.6% (Cost $3,734,023) (a)    $ 3,992,949   
   LIABILITIES IN EXCESS OF OTHER ASSETS - (0.6)%      (22,796 ) 
     

 

 

 
   MEMBERS’ CAPITAL - 100.0%    $ 3,970,153   
     

 

 

 

 

(a) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $3,750,669 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

 

Unrealized Appreciation:

   $ 276,268   

Unrealized Depreciation:

     (33,988
  

 

 

 

Net Unrealized Appreciation:

   $ 242,280   
  

 

 

 

 

* Non-Income producing security.
** Money market fund; interest rate reflects seven-day effective yield on September 30, 2012.

ADR - American Depositary Receipt

REITS - Real Estate Investment Trusts

 

See accompanying notes to financial statements   2


Table of Contents

ASCENDANT NATURAL RESOURCES MASTER FUND

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2012

 

ASSETS

  

Investment in Securities (identified cost $3,734,023)

   $     3,992,949   

Receivable for securities sold

     156,872   

Contribution receivable

     12,000   

Dividends and interest receivable

     3,974   

Prepaid expenses and other assets

     118   
  

 

 

 

TOTAL ASSETS

     4,165,913   
  

 

 

 

LIABILITIES

  

Payable for investments purchased

     163,851   

Due to custodian

     11,610   

Fees payable to other affiliates

     2,916   

Investment advisory fees payable

     2,703   

Accrued expenses and other liabilities

     14,680   
  

 

 

 

TOTAL LIABILITIES

     195,760   
  

 

 

 

MEMBERS’ CAPITAL

   $ 3,970,153   
  

 

 

 

MEMBERS’ CAPITAL

   $ 3,970,153   
  

 

 

 

 

See accompanying notes to financial statements   3


Table of Contents

ASCENDANT NATURAL RESOURCES MASTER FUND

STATEMENT OF OPERATIONS

For the Period Ended September 30, 2012*

 

INVESTMENT INCOME

  

Dividends

   $ 32,593   

Interest

     79   
  

 

 

 

TOTAL INVESTMENT INCOME

     32,672   
  

 

 

 

EXPENSES

  

Investment advisory fees

     14,219   

Professional fees

     49,853   

Administrative services fees

     17,614   

Printing and postage expenses

     4,156   

Custodian fees

     3,528   

Trustees fees and expenses

     2,575   

Compliance officer fees

     2,231   

Insurance expense

     68   

Other expenses

     1,146   
  

 

 

 

TOTAL EXPENSES

     95,390   
  

 

 

 

NET INVESTMENT LOSS

     (62,718
  

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

  

Net realized loss from security transactions

     (106,886

Net change in unrealized appreciation of investments

     258,926   
  

 

 

 

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS

     152,040   
  

 

 

 

NET INCREASE IN MEMBERS’ CAPITAL RESULTING FROM OPERATIONS

   $ 89,322   
  

 

 

 

 

* The Ascendant Natural Resources Master Fund commenced operations on March 20, 2012

 

See accompanying notes to financial statements   4


Table of Contents

ASCENDANT NATURAL RESOURCES MASTER FUND

STATEMENT OF CHANGES IN MEMBERS’ CAPITAL

 

     Period Ended
September 30,
2012*
 

INCREASE (DECREASE) IN MEMBERS’ CAPITAL FROM OPERATIONS

  

Net investment loss

   $ (62,718

Net realized loss from security transactions

     (106,886

Net change in unrealized appreciation of investments

     258,926   
  

 

 

 

Net increase in Members’ Capital resulting from operations

     89,322   
  

 

 

 

CONTRIBUTIONS/WITHDRAWALS

  

Contributions

     4,148,481   

Withdrawals

     (267,650
  

 

 

 

Net Contributions (Withdrawals)

     3,880,831   
  

 

 

 

TOTAL INCREASE IN MEMBERS’ CAPITAL

     3,970,153   

MEMBERS’ CAPITAL

  

Beginning of period

     —     
  

 

 

 

End of period

   $ 3,970,153   
  

 

 

 

 

* The Ascendant Natural Resources Master Fund commenced operations on March 20, 2012

 

See accompanying notes to financial statements   5


Table of Contents

ASCENDANT NATURAL RESOURCES MASTER FUND

FINANCIAL HIGHLIGHTS

 

     Period Ended
September  30,
2012 (1)
 

Total return (2)

     2.59
  

 

 

 

Members’ Capital, at end of period (000s)

   $ 3,970   
  

 

 

 

Ratio of net expenses to average Members’ Capital (3)

     5.70 %(4) 

Ratio of net investment loss to average Members’ Capital (3)

     (3.75 )%(4) 

Portfolio Turnover Rate

     92 %(2) 

 

(1) Ascendant Natural Resources Master Fund commenced operations on March 20, 2012.
(2) Not annualized.
(3) Does not include the expenses of other investment companies in which the Fund invests.
(4) Annualized.

 

See accompanying notes to financial statements   6


Table of Contents

ASCENDANT NATURAL RESOURCES MASTER FUND

NOTES TO FINANCIAL STATEMENTS

September 30, 2012

 

1. ORGANIZATION

The Ascendant Natural Resources Master Fund (the “Master Fund”) is a diversified series of shares of beneficial interest of Northern Lights Fund Trust (the “Trust”), a statutory trust organized under the laws of the State of Delaware on January 19, 2005, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Master Fund’s investment objective is to seek growth of capital.

The Master Fund operates under a “master/feeder fund” structure and, accordingly, certain of its investors are other investment funds (referred to as “Feeder Funds”) investing all or a substantial portion of their assets in the Master Fund. At September 30, 2012, Ascendant Natural Resources Fund, and Pxyis Natural Resources Fund are the only investors invested in the Master Fund, and own 100% and 0.0% of the members’ capital of the Master Fund, respectively. For federal income tax purposes, the Master Fund is treated as a partnership, and each investor in the Master Fund is treated as the owner of its proportionate share of the members’ capital, income, expenses, and realized and unrealized gains and losses of the Master Fund. Accordingly, as a “pass-through” entity, the Master Fund pays no income dividends or capital gain distributions.

 

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the Master Fund in preparation of the financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

Securities valuation – Securities listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the exchange on the business day the value is being determined, or in the case of securities listed on NASDAQ at the NASDAQ Official Closing Price (“NOCP”). In the absence of a sale such securities shall be valued at the last bid price on the day of valuation. Debt securities (other than short-term obligations) are valued each day by an independent pricing service approved by the Board of Trustees (the “Board”) based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type, indications as to values from dealers, and general market conditions or market quotations from a major market maker in the securities. Investments valued in currencies other than the U.S. dollar are converted to U.S. dollars using exchange rates obtained from pricing services. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase, are valued at amortized cost. Investments in open-end investment companies are valued at net asset value.

In unusual circumstances, instead of valuing securities in the usual manner, securities may be valued at their fair market value as determined in good faith by the Trust’s Fair Value Committee and in accordance with the Trust’s Portfolio Securities Valuation Procedures (the “Procedures”). The Board

 

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ASCENDANT NATURAL RESOURCES MASTER FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

September 30, 2012

will review the fair value method in use for securities requiring a fair market value determination at least quarterly. The Procedures consider, among others, the following factors to determine a security’s fair value: the nature and pricing history (if any) of the security; whether any dealer quotations for the security are available; and possible valuation methodologies that could be used to determine the fair value of the security.

The Master Fund utilizes various methods to measure the fair value of all of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Master Fund has the ability to access.

Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Master Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of September 30, 2012 for the Master Fund’s assets measured at fair value:

 

  8


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ASCENDANT NATURAL RESOURCES MASTER FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

September 30, 2012

Ascendant Natural Resources Master Fund

 

Assets *    Level 1      Level 2      Level 3      Total  

Common Stocks

   $ 3,683,394       $ —         $ —         $ 3,683,394   

Exchange Traded Funds

     244,016         —           —           244,016   

Short-Term Investments

     65,539         —           —           65,539   

Total

   $ 3,992,949       $ —         $ —         $ 3,992,949   

There were no transfers into or out of Level 1 and Level 2 during the current period presented. It is the Fund’s policy to record transfers into or out of Level 1 and Level 2 at the end of the reporting period.

The Fund did not hold any Level 3 securities during the period.

 

* See Portfolio of Investments for industry classification.

Security transactions and related income – Security transactions are accounted for on trade date. Interest income is recognized on an accrual basis. Discounts are accreted and premiums are amortized on securities purchased over the lives of the respective securities. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

Federal Income Taxes – The Master Fund is treated as a partnership for Federal income tax purposes and therefore is not subject to Federal income tax. For income tax purposes, each person who has purchased interests in the Master Fund (each a “Member”, together the “Members”) will be treated as a partner of the Master Fund and, as such, will be taxed upon its distributive share of each item of the Master Fund’s income, gain, loss, deductions and credits for each taxable year of the Master Fund ending with or within each Member’s taxable year. The 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 Master Fund’s 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 (none), or expected to be taken in the Master Fund’s 2012 tax returns. The Master Fund identified its major tax jurisdictions as U.S. Federal, Nebraska and foreign jurisdictions where the Master Fund makes significant investments; however, the Master Fund is 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.

Expenses – Expenses of the Trust that are directly identifiable to a specific fund are charged to that fund. Expenses, which are not readily identifiable to a specific fund, are allocated in such a manner as deemed equitable (as determined by the Board), taking into consideration the nature and type of expense and the relative sizes of the funds in the Trust.

Indemnification – The Trust indemnifies its Officers and trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Master Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Master Fund that have not yet occurred. However, based on experience, the risk of loss due to these warranties and indemnities appears to be remote.

 

  9


Table of Contents

ASCENDANT NATURAL RESOURCES MASTER FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

September 30, 2012

 

3. INVESTMENT TRANSACTIONS

For the period ended September 30, 2012, cost of purchases and proceeds from sales of portfolio securities, other than short-term investments and U.S. Government securities, amounted to $3,912,259 and $2,867,848, respectively.

 

4. INVESTMENT ADVISORY AGREEMENT / TRANSACTIONS WITH AFFILIATES

The business activities of the Fund are overseen by the Board, which is responsible for the overall management of the Fund. Ascendant Advisors, LLC serves as the Fund’s Investment Advisor (the “Advisor”). The Fund has employed Gemini Fund Services, LLC (“GFS”) to provide administration, fund accounting, and transfer agent services. A Trustee and certain officers of the Fund are also officers of GFS, and are not paid any fees directly by the Fund for serving in such capacities.

Pursuant to an Advisory Agreement with the Fund, the Advisor, under the oversight of the Board, directs the daily operations of the Fund and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Advisor, the Fund pays the Advisor a management fee, computed and accrued daily and paid monthly, at an annual rate of 0.85% of the Fund’s average daily net assets.

During the period ended September 30, 2012, AWM Services, LLC, a registered broker/dealer and an affiliate of the Fund executed trades on behalf of the Fund. AWM Services, LLC received $7,168 in brokerage commissions.

Trustees- Effective April 1, 2012, with the approval of the Board, the Fund pays its pro rata share of a total fee of $21,500 per quarter for the Northern Lights Fund Trust to each Trustee who is not affiliated with the Trust or Advisor. Previously, the Fund paid its pro rata share of a total fee of $17,500 per quarter for the Northern Lights Fund Trust to each Trustee who is not affiliated with the Trust or Advisor. The Fund pays the chairperson of the Audit committee and the Lead Independent Trustee a pro rata share of an additional $2,000 per quarter. The “interested persons” who serve as Trustees of the Trust receive no compensation for their services as Trustees. None of the executive officers receive compensation from the Trust.

Pursuant to separate servicing agreements with GFS, the Fund pays GFS customary fees for providing administration, fund accounting, transfer agency and custody administration services to the Fund. GFS provides a Principal Executive Officer and a Principal Financial Officer to the Fund.

In addition, certain affiliates of GFS provide ancillary services to the Fund as follows:

Northern Lights Compliance Services, LLC (“NLCS”)- NLCS, an affiliate of GFS, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from the Fund.

 

10


Table of Contents

ASCENDANT NATURAL RESOURCES MASTER FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

September 30, 2012

Gemcom, LLC (“Gemcom”)- Gemcom, an affiliate of GFS, provides EDGAR conversion and filing services as well as print management services for the Fund on an ad-hoc basis. For the provision of these services, Gemcom receives customary fees from the Fund.

 

5. NEW ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in GAAP and the International Financial Reporting Standards (“IFRSs”)”. ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and IFRSs. ASU No. 2011-04 is effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years.

In December 2011, FASB issued ASU No. 2011-11 related to disclosures about offsetting assets and liabilities. The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The ASU is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The guidance requires retrospective application for all comparative periods presented.

Management is currently evaluating the impact this amendment may have on the Fund’s financial statements.

 

6. SUBSEQUENT EVENTS

The Fund is required to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the Statement of Assets and Liabilities. For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Fund is required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made. Management has determined that there were no subsequent events to report through the issuance of these financial statements.

 

11


Table of Contents

 

LOGO

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of Ascendant Natural Resources Master Fund and

Board of Trustees of Northern Lights Fund Trust

We have audited the accompanying statement of assets and liabilities of Ascendant Natural Resources Master Fund, a series of shares of beneficial interest of Northern Lights Fund Trust (the “Fund”), including the portfolio of investments, as of September 30, 2012, and related statement of operations, the statement of changes in net assets, and the financial highlights for the period March 20, 2012 (commencement of operations) through September 30, 2012. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit 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, 2012 by correspondence with the custodian and broker. 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 audit provides 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 Ascendant Natural Resources Master Fund, as of September 30, 2012, and the results of its operations, the changes in its net assets and its financial highlights for the period March 20, 2012 through September 30, 2012, in conformity with accounting principles generally accepted in the United States of America.

 

LOGO

BBD, LLP

Philadelphia, Pennsylvania

November 29, 2012

 

12


Table of Contents

ASCENDANT NATURAL RESOURCES MASTER FUND

EXPENSE EXAMPLES

September 30, 2012 (Unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2012 through September 30, 2012.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The “Hypothetical” line in the table below provides information about hypothetical account values and hypothetical expenses based on the Ascendant Natural Resource Master Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the 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. Therefore, 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.

 

     Beginning
Account Value
4/1/12
     Ending
Account Value
9/30/12
     Expenses Paid
During  Period*
4/1/12 – 9/30/12
     Expense Ratio
During  Period**
4/1/12 – 9/30/12
 

Actual

   $ 1,000.00       $ 974.60       $ 28.15         5.70
  

 

 

    

 

 

    

 

 

    

 

 

 

Hypothetical (5% return before expenses)

   $ 1,000.00       $ 996.50       $ 28.46         5.70

 

* Expenses are equal to the average account value over the period, multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the period (183) divided by the number of days in the fiscal year (366).
** Annualized.

 

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ASCENDANT NATURAL RESOURCES MASTER FUND

SUPPLEMENTAL INFORMATION

September 30, 2012 (Unaudited)

Approval of Advisory Agreements –Ascendant Natural Resources Fund and Ascendant Natural Resources Master Fund

The Board of Trustees of the Northern Lights Fund Trust (the “Trust”), including a majority of the Trustees who are not interested persons of the Trust or interested persons of any party to the Investment Advisory Agreements (the “Independent Trustees”) initially considered and approved the Investment Advisory Agreement between the Trust and Ascendant Advisors, LLC (the “Adviser”), on behalf of the Ascendant Natural Resources Fund (the “Fund”), on May 18, 2011. At the September 21, 2011 Board meeting, the Board considered and approved (1) a proposal to establish the Ascendant Natural Resources Master Fund (the “Master Fund”), (2) the Investment Advisory Agreement for the Master Fund (the “Master Agreement”), and (3) a proposal to reduce the advisory fee paid by the Fund because the Adviser would also receive an advisory fee from the Master Fund. The definitive Master Agreement, and the Amended Fund Agreement, reflecting the current advisory fees paid by the Fund and the Master Fund, were approved on February 22, 2012.

The following is a combined summary of the Board’s deliberations and conclusions reached at the Board meetings related to the approvals of the Fund Agreement and the Master Agreement. In their consideration of the proposed Agreements, the Board did not identify any single factor as controlling, and the following summary does not detail all the matters considered. Matters considered by the Board, including the Independent Trustees, in connection with its approval of the Agreements included the following:

Nature, Extent and Quality of Services. Presentations were given by representatives of the Adviser regarding the Funds’ investment objective and investment strategies, the plan to structure the Fund as a master-feeder structure to better facilitate promotion of the Fund by the Adviser and separate feeder funds. The Trustees discussed the nature of the Adviser’s operations, the quality of the Adviser’s compliance infrastructure and the experience of its Fund management personnel and the services provided to each the Fund and the Master Fund. The Board also considered financial information about the firm provided by the Adviser. The Trustees concluded that the Adviser has the ability to provide a level of service consistent with the Board’s expectations.

 

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ASCENDANT NATURAL RESOURCES MASTER FUND

SUPPLEMENTAL INFORMATION

September 30, 2012 (Unaudited)

Performance. Because the Fund had not commenced operations prior to the initial approval, and very limited operations at the time of the September and February meetings, the Trustees did not consider the investment performance of the Fund. They did review and consider Adviser-provided performance information for the Adviser’s natural resources strategy and noted it had outperformed the S&P North American Natural Resources Index 6.7% for the year-to-date period ended August 31, 2011. The Board noted that the Adviser’s investment decisions are based heavily on a proprietary, quantitative process developed by the Adviser. The Board concluded that the proposed investment strategy and the Adviser’s investment process suggests it is qualified to manage the Fund and the Master Fund, and that the Adviser’s performance was reasonable.

Fees and Expenses. The Board compared the advisory fee and proposed expense ratio to the fees and expenses charged by a peer group of funds in the same Morningstar category. The Board noted that the proposed total advisory fees and expense ratio was higher than the averages for the peer group, but lower than or in line with certain funds in the peer group. The Board noted that the Adviser believes that the advisory fees reflect its unique investment process and sophisticated portfolio management team. The Board also noted that the Adviser’s reliance on quantitative analysis requires it to invest significant amounts in its personnel and research. The Board also compared the advisory fees to the fees charged by the Adviser for its separate accounts. Additionally, the Board noted that the Adviser had agreed to contractually limit the normal operating expenses of the Fund. The Trustees concluded that the Fund’s and the Master Fund’s advisory fees were reasonable.

Economies of Scale. The Board, including the Independent Trustees, considered whether there will be economies of scale with respect to the management of the Funds and whether there is potential for realization of any further economies of scale. The Adviser noted it expects the Master Fund to reach economics of scale sooner due to the master feeder structure, which would benefit the shareholders of the Fund. After discussion, it was the consensus of the Board that based on the anticipated size of the Fund and the Master Fund for the initial two years of the Advisory Agreements, economies of scale was not a relevant consideration at this time.

Profitability. The Board considered the anticipated profits to be realized by the Adviser in connection with the operation of the Funds, based on the materials

 

15


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ASCENDANT NATURAL RESOURCES MASTER FUND

SUPPLEMENTAL INFORMATION

September 30, 2012 (Unaudited)

provided to the Board, and whether the amount of profit is a fair entrepreneurial profit for the management of the Funds. They also considered the profits to be realized by the Adviser (if any) from other activities related to the Funds. The Trustees concluded that because of the Funds’ expense limitation agreements and the expected asset levels, the Adviser’s level of profitability from its relationship with the Funds would not be excessive.

Conclusion. Having requested and received such information from the Adviser as the Board believed to be reasonably necessary to evaluate the terms of the proposed Advisory Agreements, and as assisted by the advice of independent counsel, the Board, including the Independent Trustees, concluded that the advisory fee structure of the Funds was reasonable and that approval of the Advisory Agreements was in the best interests of the Trust and the shareholders of the Funds.

 

16


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The Ascendant Funds

SUPPLEMENTAL INFORMATION (Unaudited)

September 30, 2012

This chart provides information about the Trustees and Officers who oversee the Fund. Officers elected by the Trustees manage the day-to-day operations of the Fund and execute policies formulated by the Trustees. The address of each Trustee and Officer is 17605 Wright Street, Suite 2, Omaha, Nebraska 68130, unless otherwise noted.

Independent Trustees

 

Name, Address

and Year of

Birth

 

Position/Term

of Office*

 

Principal Occupation

During the Past Five

Years

 

Number of

Portfolios in Fund

Complex**

Overseen by

Trustee

 

Other Directorships

held by Trustee During

the Past Five Years

Anthony J. Hertl

Born in 1950

 

Trustee

Since 2005

  Consultant to small and emerging businesses (since 2000).   97   AdvisorOne Funds (12 portfolios) (since 2004); Ladenburg Thalmann Alternative Strategies Fund (since June 2010); Satuit Capital Management Trust; The Z-Seven Fund, Inc. (2007 – May, 2010), Greenwich Advisers Trust (2007- February 2011) and Global Real Estate Fund; Northern Lights Variable Trust (since 2006)

Gary W. Lanzen

Born in 1954

 

Trustee

Since 2005

  Founder and President, Orizon Investment Counsel, LLC (since 2000); Chief Investment Officer (2006 -2010); Partner, Orizon Group, Inc. (a financial services company) (2002-2006).   97  

AdvisorOne Funds (12 portfolios) (since 2003);

Ladenburg Thalmann Alternative Strategies Fund (since 2010); Northern Lights Variable Trust (since 2006)

Mark H. Taylor

Born in 1964

 

Trustee

Since 2007

  Professor, Department of Accountancy, Weatherhead School of Management, Case Western Reserve University (since 2009); John P. Begley Endowed Chair in Accounting, Creighton University (2002 – 2009); Member Auditing Standards Board, AICPA (since 2008).   100   Ladenburg Thalmann Alternative Strategies Fund (since 2010); Lifetime Achievement Mutual Fund, Inc. (LFTAX) (Director and Audit Committee Chairman) (2007-2012); NLFT III (since February 2012); Northern Lights Variable Trust (since 2007)

John V. Palancia

Born in 1954

 

Trustee

Since 2011

  Retired (since 2011). Formerly, Director of Futures Operations, Merrill Lynch, Pierce, Fenner & Smith Inc. (1975-2011).   100   Northern Lights Variable Trust (since 2011); NLFT III (since February 2012); Ladenburg Thalmann Alternative Strategies Fund (since 2012)

 

17


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The Ascendant Funds

SUPPLEMENTAL INFORMATION (Unaudited) (Continued)

September 30, 2012

Interested Trustees and Officers

 

Name, Address

and Year of

Birth

 

Position/Term

of Office*

 

Principal Occupation

During the Past Five

Years

 

Number of

Portfolios in Fund

Complex **

Overseen by

Trustee

 

Other Directorships

held by Trustee During

the Past Five Years

Michael Miola***

Born in 1952

 

Trustee

Since 2005

  Co-Owner and Co-Managing Member of NorthStar Financial Services Group, LLC; Manager of Gemini Fund Services, LLC; Orion Adviser Services, LLC, CLS Investments, LLC, GemCom, LLC and Northern Lights Compliance Services, LLC (since 2003).   97   AdvisorOne Funds (12 portfolios) (2003-2012); Ladenburg Thalmann Alternative Strategies Fund (since 2010); Constellation Trust Co.; Northern Lights Variable Trust (since 2006)

Andrew Rogers

450 Wireless Blvd.

Hauppauge, NY 11788

Born in 1969

 

President

Since 2006

  Chief Executive Officer, Gemini Fund Services, LLC (since 2012); President and Manager, Gemini Fund Services, LLC (2006 - 2012); Formerly Manager, Northern Lights Compliance Services, LLC (2006 – 2008); and President and Manager, GemCom LLC (2004 - 2011).   N/A   N/A

Kevin E. Wolf

450 Wireless Blvd.

Hauppauge, NY 11788

Born in 1969

 

Treasurer

Since 2006

  President, Gemini Fund Services, LLC (since 2012); Director of Fund Administration, Gemini Fund Services, LLC (2006 - 2012); and Vice-President, GemCom, LLC (since 2004).   N/A   N/A

James P. Ash

450 Wireless Blvd.

Hauppauge, NY 11788

Born in 1976

 

Secretary

Since 2011

  Senior Vice President, Gemini Fund Services, LLC (since 2012); Vice President, Gemini Fund Services, LLC (2011 - 2012); Director of Legal Administration, Gemini Fund Services, LLC (2009 - 2011); Assistant Vice President of Legal Administration, Gemini Fund Services, LLC (2008 - 2011).   N/A   N/A

 

18


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The Ascendant Funds

SUPPLEMENTAL INFORMATION (Unaudited) (Continued)

September 30, 2012

Interested Trustees and Officers

 

Name, Address

and Year of

Birth

 

Position/Term

of Office*

 

Principal Occupation

During the Past Five

Years

 

Number of

Portfolios in Fund

Complex **

Overseen by

Trustee

 

Other Directorships

held by Trustee During

the Past Five Years

Lynn Bowley

Born in 1958

 

Chief Compliance Officer

Since 2007

  Compliance Officer of Northern Lights Compliance Services, LLC (since 2007); Vice President of Investment Support Services for Mutual of Omaha Companies (2002 – 2006).   N/A   N/A

 

* The term of office for each Trustee and officer listed above will continue indefinitely until the individual resigns or is removed.
** The term “Fund Complex” includes the Northern Lights Fund Trust (“NLFT”), Northern Lights Fund Trust III (“NLFT III”) and the Northern Lights Variable Trust (“NLVT”).
*** Michael Miola is an “interested person” of the Trust as that term is defined under the 1940 Act, because of his affiliation with Gemini Fund Services, LLC, (the Trust’s Administrator, Fund Accountant, Transfer Agent) and Northern Lights Distributors, LLC (the Funds’ Distributor).

The Fund’s Statement of Additional Information includes additional information about the Trustees and is available free of charge, upon request, by calling toll-free at 1-855-527-2363.

 

19


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PRIVACY NOTICE

NORTHERN LIGHTS FUND TRUST

 

FACTS    WHAT DOES NORTHERN LIGHTS FUND TRUST DO WITH YOUR PERSONAL INFORMATION?
Why?    Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some, but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?   

The types of personal information we collect and share depends on the product or service that you have with us. This information can include:

 

•     Social Security number and wire transfer instructions

 

•     account transactions and transaction history

 

•     investment experience and purchase history

 

When you are no longer our customer, we continue to share your information as described in this notice.

How?    All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Northern Lights Fund Trust chooses to share; and whether you can limit this sharing.

 

Reasons we can share your

personal information:

  

Does Northern Lights Fund Trust

share information?

  

Can you limit this sharing?

For our everyday business purposes - such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus.    YES    NO
For our marketing purposes - to offer our products and services to you.    NO    We don’t share
For joint marketing with other financial companies.    NO    We don’t share
For our affiliates’ everyday business purposes - information about your transactions and records.    NO    We don’t share
For our affiliates’ everyday business purposes - information about your credit worthiness.    NO    We don’t share
For nonaffiliates to market to you    NO    We don’t share

QUESTIONS?        Call 1-402-493-4603

 

20


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PRIVACY NOTICE

NORTHERN LIGHTS FUND TRUST

Page 2

 

What we do:
How does Northern Lights Fund Trust protect my personal information?   

To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.

 

Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.

How does Northern Lights Fund Trust collect my personal information?   

We collect your personal information, for example, when you

 

•   open an account or deposit money

 

•   direct us to buy securities or direct us to sell your securities

 

•   seek advice about your investments

 

We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.

Why can’t I limit all sharing?   

Federal law gives you the right to limit only:

 

•   sharing for affiliates’ everyday business purposes – information about your creditworthiness.

 

•   affiliates from using your information to market to you.

 

•   sharing for nonaffiliates to market to you.

 

State laws and individual companies may give you additional rights to limit sharing.

 

Definitions
Affiliates   

Companies related by common ownership or control. They can be financial and nonfinancial companies.

 

•   Northern Lights Fund Trust has no affiliates.

Nonaffiliates   

Companies not related by common ownership or control. They can be financial and nonfinancial companies.

 

•   Northern Lights Fund Trust does not share with nonaffiliates so they can market to you.

Joint marketing   

A formal agreement between nonaffiliated financial companies that together market financial products or services to you.

 

•   Northern Lights Fund Trust does not jointly market.

 

21


Table of Contents

PROXY VOTING POLICY

Information regarding how the Funds voted proxies relating to portfolio securities for the most recent period ended June 30 as well as a description of the policies and procedures that the Funds use to determine how to vote proxies is available without charge, upon request, by calling 1-855-527-2363 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

PORTFOLIO HOLDINGS

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available 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 (1-800-SEC-0330). The information on Form N-Q is available without charge, upon request, by calling 1-855-527-2363.

INVESTMENT ADVISOR

Ascendant Advisors, LLC

Four Oaks Place

1330 Post Oaks Blvd., Suite 1550

Houston, TX 77056

ADMINISTRATOR

Gemini Fund Services, LLC

450 Wireless Blvd.

Hauppauge, New York 11788


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Item 2. Code of Ethics.

 

  (a) The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or third party.

 

  (b) Not applicable.

 

  (c) There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or third party, and that relates to any element of the code of ethics description.

 

  (d) The registrant has not granted any waiver, including any implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

 

  (e) Not applicable.

 

  (f) The registrant’s code of ethics is filed herewith as Exhibit (a)(1).

 

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Trustees (the “Board”) has determined that James Leary, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the “SEC”). Mr. Leary is “independent” as defined by the SEC for purposes of this Item 3 of Form N-CSR.

 

Item 4. Principal Accountant Fees and Services.

Audit Fees

 

  (a) The aggregate fees billed for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $291,000 for the fiscal year ended September 30, 2011 and $334,000 for the fiscal year ended September 30, 2012.


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Audit-Related Fees

 

  (b) The aggregate fees billed for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $60,000 for the fiscal year ended September 30, 2011 and $65,000 for the fiscal year ended September 30, 2012. Audit-related fees are related to the Semi-Annual review procedures.

Tax Fees

 

  (c) The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $0 for the fiscal year ended September 30, 2011 and $0 for the fiscal year ended September 30, 2012.

All Other Fees

 

  (d) The aggregate fees billed for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for the fiscal year ended September 30, 2011 and $0 for the fiscal year ended September 30, 2012.

 

    (e)(1)   Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

The Audit Committee shall:

 

  (a) have direct responsibility for the appointment, compensation, retention and oversight of the Fund’s independent auditors and, in connection therewith, to review and evaluate matters potentially affecting the independence and capabilities of the auditors; and

 

  (b) review and pre-approve (including associated fees) all audit and other services to be provided by the independent auditors to the Fund and all non-audit services to be provided by the independent auditors to the Fund’s investment adviser or any entity controlling, controlled by or under common control with the investment adviser (an “Adviser Affiliate”) that provides ongoing services to the Fund, if the engagement relates directly to the operations and financial reporting of the Fund; and

 

  (c) establish, to the extent permitted by law and deemed appropriate by the Audit Committee, detailed pre-approval policies and procedures for such services; and

 

  (d) consider whether the independent auditors’ provision of any non-audit services to the Fund, the Fund’s investment adviser or an Adviser Affiliate not pre-approved by the Audit Committee are compatible with maintaining the independence of the independent auditors.

 

    (e)(2)   The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) 100%


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(c) 100%

(d) 100%

 

  (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 principal accountant’s full-time, permanent employees was less than fifty percent.

 

  (g) The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant was $0 for the fiscal year ended September 30, 2011 and $0 for the fiscal year ended September 30, 2012.

 

  (h) Not applicable.

 

Item 5. Audit Committee of Listed registrants.

Not applicable.

 

Item 6. Investments.

 

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

 

(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 Management Investment Companies.

Not applicable.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.


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Item 10. Submission of Matters to a Vote of Security Holders.

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 and principal financial officers, or persons performing similar functions, have 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 the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures 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, as amended (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 has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Exhibits.

 

(a)(1)    Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.
(a)(2)    Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3)    Not applicable.
(b)    Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto.


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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)   

Pyxis Funds II

  
By (Signature and Title)*   

/s/ Ethan Powell

  
   Ethan Powell, Executive Vice President and Principal Executive Officer   
   (principal executive officer)   
Date  

11/30/12

  

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/ Ethan Powell

  
   Ethan Powell, Executive Vice President and Principal Executive Officer   
   (principal executive officer)   
Date  

11/30/12

  
By (Signature and Title)*   

/s/ Brian Mitts

  
   Brian Mitts, Chief Financial Officer and Treasurer   
   (principal financial officer)   
Date  

11/30/12

  

 

* 

Print the name and title of each signing officer under his or her signature.