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 811-09094
Leuthold Funds, Inc.
(Exact name of registrant as specified in charter)
150 South Fifth Street, Suite 1700, Minneapolis, MN 55402
(Address of principal executive offices) (Zip code)
John Mueller
Leuthold Weeden Capital Management
150 South Fifth Street, Suite 1700, Minneapolis, MN 55402
(Name and address of agent for service)
612-332-9141
Registrant’s telephone number, including area code
Date of fiscal year end: September 30
Date of reporting period: September 30, 2023
Item 1. Reports to Stockholders.
Annual Report
September 30, 2023
LEUTHOLD FUNDS
Leuthold Core Investment Fund
Retail Class Shares LCORX
Institutional Class Shares LCRIX
Leuthold Global Fund
Retail Class Shares GLBLX
Institutional Class Shares GLBIX
Leuthold Select Industries Fund
LSLTX
Leuthold Grizzly Short Fund
GRZZX
(Formerly Grizzly Short Fund)
Leuthold Core ETF
LCR
The Securities and Exchange Commission has not approved or disapproved these securities or determined if this annual report is accurate or complete. Any representation to the contrary is a criminal offense. An investment in the Funds is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Leuthold Funds
Table of Contents
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Leuthold Funds - 2023 Annual Report | 1 |
Leuthold Funds
Letter to Shareholders
Dear Leuthold Fund Shareholders,
The first anniversary of the 2022 bear-market low (to date) occurred on October 12th, yet more than a year later, we’re not confident enough to declare that we’ve hit the first anniversary of a bull market. The rally from last October represents either (1) the longest hibernation of any bear market in history or (2) a bull market that’s hardly kicking. If one sides with the latter, there’s still plenty to be worried about: A full year after the October low point, U.S. economic, monetary, and valuation conditions have only crumbled more.
Our best guess is that the upturn from late 2022 to this year’s July 31st high point constituted a bear-market rally. If correct, it will have been the longest bear-market rally in history—at 9½ months. (The old record was five months.) After reaching this year’s peak in July, stocks declined in August and September, yet the S&P 5001 is still up 13.07% YTD as of September 30th. Not bad—until one looks under the hood. Eliminating the performance of the seven largest members of the S&P 500 (aka the “Magnificent Seven”2) drags down the YTD return for the remaining 493 stocks to a mere +1.94%. That sort of top-heavy performance has been seen many times in history, but never in the first year of a bull market.
Narrow leadership is just one reason to be skeptical about being in the midst of a new bull market. There are the interest-rate hikes, quantitative tightening3, still-elevated stock valuations, and, in our opinion, an economy destined for a recession.
Ultimately, we’ll rely on quantitative disciplines to guide portfolio exposure, not predictions. “Forecasts are for show, disciplines are for dough,” as Steve Leuthold would say. In our view, unsustainable dynamics are propping up major market indexes, and another leg down for stocks could crack the economy’s resilience—if not, there is no shortage of other high-stake vulnerabilities that may trigger a breakdown. Until the bear market finishes purging the excesses caused by recent years’ unrestrained monetary policies and the seduction of seven magnificent stocks, a new bull market won’t survive very long.
ANNUAL PERFORMANCE REVIEW
Tactical Asset Allocation—Domestic & Global Mutual Funds
For the fiscal year (FY) ended September 30th, the retail share class of the Leuthold Core Investment Fund (Core) had a total return (TR) of +10.75%, substantially better than its peers, as represented by the Morningstar Tactical Allocation category (+6.34% TR). Compared to a passive methodology that mirrors the S&P 500’s 100% equity exposure (+21.62% TR), the Core Fund’s mixture of equities, fixed income, and alternatives trailed by a wide margin but had much less performance volatility. The Leuthold Global Fund (Global) had a total return of +8.96% (retail share class)—lagging its peer fund category, Morningstar Global Allocation (+10.64% TR), and that of the 100% global stock exposure of the MSCI All Country World Index4 (ACWI), which produced +20.80% TR.
1Stock market index tracking performance of 500 of the largest companies listed on U.S. stock exchanges.
2Alphabet, Amazon, Apple, Google, Meta, Nvidia, and Tesla.
3Monetary policies that contract or reduce the Federal Reserve balance sheet.
4Comprises stocks of nearly 3,000 companies from 23 developed countries and 25 emerging markets.
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Leuthold Funds
Letter to Shareholders (continued)
Tactical Funds’ Long Equity Exposure
Traditional long-stock investments comprised a FY monthly average of 63% of assets in the Core and Global portfolios. The Core Fund’s U.S.-traded stocks produced +23.25% TR, outpacing the S&P 500’s corresponding +21.62%. The Global Fund’s equities (+21.51% TR) also surpassed its ACWI benchmark (+20.80% TR). Each strategy’s specific equity-performance drivers are detailed under “Leuthold Select Industries and Leuthold Global Industries.”
Tactical Funds’ Equity Hedge
One year ago, the equity hedge was a 19% weight in both the Core and Global Funds, offsetting 58% in long equities to a net exposure level of 39%. After hitting a low point for the bear market in October 2022, most market-cap segments and styles caught a tailwind and rebounded into early 2023. The turnaround in stock market breadth helped to buoy our expectations and prompted us to reduce the hedge, lifting net equity exposure to 55%. The same market technicals faded during March, and the Core and Global Funds shifted back to a more cautious net equity stance of 49%, which was maintained throughout the rest of the FY.
The equity hedge is multi-purpose: 1) It offers an efficient means to lower and raise stock exposure, which is less costly and more tax-friendly than selling/buying individual securities; 2) It has the potential to profit and counteract losses incurred by the portfolio’s long equity positions when the stock market is declining. Over the last twelve months, the hedge succeeded several times in accomplishing the first objective; in terms of added value from absolute return, it was a disadvantage, incurring -400 basis points5 (bps) against gains booked by other portfolio assets.
Tactical Funds’ Fixed Income
As with the prior FY, fixed income encompassed 15% of assets during the last twelve months, which is historically low versus the Funds’ average level. The greater part of the mix was Developed Market Sovereign Debt, with an average weight between 8-9%. It was the only fixed-income portion to produce a loss, albeit marginally, due to its small position. Other investment-grade bonds included Corporates, Treasury Inflation Protected Securities (TIPS), Mortgage-Backed Securities (MBS), and Emerging Market Sovereign Debt; collectively, they added 30 bps to FY results. In addition to investment-grade debt, there was a minimal amount (0.60%) in High Yield bonds, which had a slightly positive return.
Tactical Funds’ Commodities Exposure: Gold
The weight in Gold stayed steady near 2% until the end of June; it was liquidated from portfolios in July. We continue to view Gold as a sensible choice for diversification in personal portfolios; however, the opportunity cost of precious metals is up sharply, and for now, we parked the proceeds in Treasury bills yielding more than 5%. Acting contrary to its usual nature, Gold’s performance followed the direction of stocks for much of the nine-plus-month holding period, booking gains in tandem with equities until it veered off track and declined in May and June. Performance was solid at +1,700 bps, translating to a +30 bps effect on twelve-month results.
5A basis point is one-hundredth of a percentage point. One basis point equals 0.01%, or 0.0001. One hundred basis points equal 1%.
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Leuthold Funds - 2023 Annual Report | 3 |
Leuthold Funds
Letter to Shareholders (continued)
Leuthold Select Industries and Leuthold Global Industries
Long Equity Exposure—Domestic & Global
Leuthold Select Industries (SI) and Leuthold Global Industries (GI) are fully invested stock portfolios. The universes of eligible securities for each are multi-cap (i.e., equities of all sizes based on market capitalization). The SI Fund universe comprises 3,000 domestically traded securities, while the GI universe contains roughly 5,000 globally traded equities. To reduce risk, individual stocks must meet additional prerequisites for portfolio eligibility, like minimum liquidity and trading volume thresholds.
Investment selection starts with a top-down system. It is a quantitative approach that looks for compelling trends among broad sectors and affiliated industries. After a concept emerges as an attractive opportunity, investments are directed to concentrations of stocks that characterize the theme. The goal is to profit from upward momentum in subsets of equities that seem positioned to maintain leadership for an extended period.
Aside from a few stumbles, leading stock market indexes, both domestic and foreign, charged higher after the S&P 500 established its low (to date) in October 2022, and our equities rivaled those moves. For the FY ended September 30th, the Leuthold SI Fund produced +22.23% TR, which was better than the +21.62% TR for the S&P 500 and substantially ahead of its peer-fund category, Morningstar Mid-Cap Blend (+13.98% TR). Leuthold GI equities generated a +22.05% TR—above that of the MSCI ACWI (+20.80% TR) and its peers—as reflected by the Morningstar Global Large-Stock Blend average (+18.33% TR).
Equity Sector/Industry Group Drivers
(Relative performance refers to corresponding benchmark results.)
At the broad sector level, all SI and GI investments were profitable over the last twelve months: The top performers in SI contributed between +240 and +870 bps to FY results, and GI’s best sectors provided +296 to +521 bps. The ACWI also netted gains in all sectors, while the S&P 500 swallowed losses from Real Estate and Utilities—the two sectors in which SI had zero assets, as our disciplines rated them poorly all year. Like SI’s domestic scores, the GI rankings kept that portfolio out of the Real Estate sector, and, considering GI’s almost nonexistent weight in Utilities, the sector wasn’t tallying enough positives to suggest attractive opportunities in that global arena, either.
From a sector view, the FY’s strongest areas in the two equity strategies were virtually mirror images. Still, in terms of performance, the standings varied due to domestic- versus global-specific undercurrents. The top investments in common between SI and GI were Information Technology, Financials, Consumer Discretionary, Industrials, and Materials. There were two divergences of note: 1) Energy was far more value-added to GI (+440 bps) than associated holdings in SI (+170 bps), and 2) On an absolute basis, the SI’s domestic Communication Services sector supplied over +2,300 bps compared to -1,400 bps for GI’s global version.
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Leuthold Funds
Letter to Shareholders (continued)
The SI Fund’s upside from the IT sector was driven by miscellaneous concentrations in Semiconductorrelated stocks (42% average gain over the last twelve months), Systems Software (+32%), Hardware & Storage (+29%), Electronic Manufacturing Services (+59%), and Application Software (+85%). In contrast, GI’s IT sector gains were entirely attributable to groups in the Semiconductor industry (+29-60%).
Financials exposure in both equity portfolios benefited from industry investments in Banking/Brokerage (+14% FY average return), Reinsurance (SI +18%; GI +53%), and Property & Casualty (+17%). The GI portfolio (which outdid SI’s Financials holdings) captured a nice increase from Developed Market Diversified Banks (+38%), while SI’s allotment to Transaction/Payment Processing equities had a strong showing (+35%).
Breaking down the attribution in the Consumer Discretionary sector, SI and GI mutually profited from surging Homebuilding stocks (+65-73%); SI performance was further advanced by interconnected exposure to Home Improvement and Home Furnishing retailers. Both had auto-industry stocks; in SI, Automotive Retail (+67%) was a big boost, and GI performance had constructive results from Automobile Manufacturers to a lesser degree.
Various concentrations were spread across Industrials subsets, with the most prominent weight being Trading Companies & Distributors, which added over 100 bps and 176 bps, respectively, to SI and GI returns. A second group in common was Air Freight & Logistics: In SI, it experienced +11% over the last twelve months, while GI’s larger commitment to the global segment produced +40%. Specific to SI, Environmental Services stocks also buoyed FY results.
Equity portfolios had productive outcomes from Metals & Mining and Steel (Materials sector), although GI’s groups meaningfully trailed the performance of SI’s respective positions. A third industry, Copper, was advantageous for SI.
Each portfolio contained several industry investments detracting from FY gains, but the losses were minimal. Offsetting SI’s FY results, most damage was attributable to stocks from Specialty Retail, Advertising, and Health Care Facilities (amounting to just over -100 bps combined). GI’s FY gain was moderately diminished by unsuccessful investments in Airlines, Textile/Apparel/Luxury Goods, and Advertising.
Global Industries: Attribution By Country
Over the last twelve months, GI’s most significant weight, U.S. stocks (48% exposure), returned +20%. The ACWI’s U.S. weight was higher at 59% and performed marginally better (+21%). GI equities affiliated with Japan, the U.K., the Netherlands, Germany, and Canada materially outpaced those in the ACWI. Switzerland, South Korea, Spain, Mexico, and Luxembourg were also more value-added on a relative basis.
Even though losses specific to country exposure were nominal, one stood out as particularly poor: Equities from France returned a disappointing -21%, affecting GI performance by about -30 bps. That loss looks fairly insignificant, but it was much more cutting when contrasted with the benchmark’s position in France, which soared nearly +36% and added about 100 bps to ACWI return. GI’s next worst country investments were Indonesia, Panama, South Africa, Norway, and Finland—they detracted by a pooled -50 bps versus +12 bps for the benchmark.
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Leuthold Funds - 2023 Annual Report | 5 |
Leuthold Funds
Letter to Shareholders (continued)
Leuthold Grizzly Short Fund
Short-Only Equity Exposure
The Leuthold Grizzly Short Fund (Grizzly) aims to be 100% short individual stocks. There are numerous applications for this investment specialty, including Seeking profits when stocks decline, diversification, smoothing out volatility, and managing capital gains/losses.
This actively managed approach employs a quantitative methodology for security selection. The Fund obtains inverse exposure to stocks trading at prices that don’t seem sustainable based on the underlying fundamentals; the Grizzly Short Fund profits when a portfolio holding declines in price.
For the FY ended September 30th, the Grizzly Short Fund produced -16.77% TR. It was a nice improvement over the S&P 500 inverse results (-21.62% TR) but slightly lower than the inverse S&P 400 MidCap6 Index (-15.51% TR).
Short Exposure: Equity Sector/Industry Group Drivers
(Relative performance vs. S&P 500’s corresponding results.)
The year’s tremendous upswing for Information Technology (IT) stocks resulted in one of the Grizzly Short Fund’s biggest FY losses on an absolute basis. Ironically, it was responsible for most of the Fund’s relative outperformance because it was substantially underweighted (about one-half of the benchmark). On an absolute basis, the Grizzly Short Fund snared a gain from Utilities (the only sector with a positive contribution to FY results). Besides Utilities, Communication Services and IT positions outpaced the S&P 500’s exposure.
Investments in Utilities were diversified across sub-industries, like Electric, Water, and Multi-Utilities. However, the sector gain was mainly the result of Multi-Utilities and, to a lesser extent, Renewable Electricity and Independent Power Producers. The Fund’s superior relative results within Communication Services came from Interactive Media, Interactive Home Entertainment, and Advertising—they counteracted the terrible performance of Movies & Entertainment stocks. Among the IT sector, the Communications Equipment subset produced a gain, and Electronic Equipment, Electronic Components, and IT Consulting were comparatively valued-added.
The rest of the broad sector investments trailed those in the benchmark, some by a great deal. Energy and Financials underperformed, in turn, by -64 bps and -89 bps. Health Care underperformance was more extensive (-100 bps), but the relative return from Consumer Discretionary was abysmal—more than -300 bps worse. Real Estate, Materials, Communication Services, and Industrials were laggards, but by a much smaller margin, -16 bps to -25 bps apiece.
The most damaging Consumer Discretionary allocations were Retailers of all varieties: Apparel, Broadline, Automotive Parts, Accessories, Electronics, and Home Improvement (-230 bps collectively). Casinos & Gaming further undermined FY performance by -120 bps, and Hotels & Resorts trimmed by -62 bps. Adverse allocations to Health Care stemmed from two related areas: HC Equipment (-141 bps) and HC Supplies (-100 bps).
6The index serves as a gauge for the U.S. mid-cap equities sector and is the most widely followed mid-cap index.
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Leuthold Funds
Letter to Shareholders (continued)
Because it is actively managed, the Grizzly Short Fund’s sector and industry concentrations may noticeably fluctuate from the benchmark. The Fund’s disciplines put a cap on portfolio weights, both for sectors and industries. Likewise, individual stocks in the Fund are limited from expanding beyond preset levels—a notable disparity versus the market-cap-weighting systems of most indexes, which allow the largest stocks to have the most influence on overall performance. Although curbing a position’s size in the Grizzly Short Fund can put a ceiling on a gain when a holding is profiting, we believe it is more important for a shortselling approach to minimize risk, even if it means sacrificing some upside. Overall, in our experience, managing security weights and adhering to various other portfolio monitoring policies has been a long-term advantage for Grizzly Short Fund results.
Leuthold Core ETF
The Leuthold Core ETF (Core ETF) structures its asset allocation and associated investments similarly to the Leuthold Core mutual fund. The Core ETF is designed to perform reasonably in line with the Core mutual fund while employing different investment vehicles to accomplish that goal: The Core ETF builds its portfolio using third-party ETFs rather than individual securities. ETFs dedicated to singular broad equity sectors and industry concentrations are chosen to approximate the composition obtained via individual stocks in the mutual fund. Likewise, fixed income, alternatives, and other prospective assets are attained using ETFs that furnish parallel characteristics. This ETF version of our Core methodology is a means through which those committed to investing solely through ETFs can achieve diversification using our proprietary tactical allocation model and original investment themes.
The Core ETF produced an +11.03% NAV total return (+11.01% market TR) for the FY ended September 30th, about one-half that of the S&P 500 (+21.62% TR), but markedly ahead of peer funds, as represented by the Morningstar Tactical Allocation category (+6.34% TR). Allowing for the Core ETF’s mandate to diversify across the major asset classes (equities, fixed income, alternatives), it is not designed to fully participate in a robust stock market upswing. Nonetheless, during a year characterized by historic events causing erratic ups and downs, the Core ETF offers the advantage of minimizing volatility and may profit from one or more allocations when others are out of favor.
Core ETF: Performance Drivers
Average monthly gross stock exposure was 56% during the FY. As the stock market rebounded from last October’s bear-market low point, Core ETF equities did the same, with a +22.30% TR for twelve months through September 30th—the primary component behind the overall FY gain. Reversing the outcome of the previous FY, the best performance (+500 bps) was attributable to diversified Information Technology (IT) investments, augmented by concentrations specific to Semiconductors and Software & Services. Other measurable gains came from broad Consumer Discretionary holdings enhanced by Homebuilder/Home Construction stocks (+163 bps), while Financials and Energy sectors each contributed about 100 bps. Just two long equity segments had marginally adverse effects: An ETF specifically focused on Retailers and one emphasizing Health Care Providers (-49 bps, collectively).
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Leuthold Funds - 2023 Annual Report | 7 |
Leuthold Funds
Letter to Shareholders (continued)
A hedge to the long-stock position was in place all year, with a monthly average weight of 5.6%; the position reined in long equities to about 50% net exposure. The hedge is multi-purpose: 1) It offers an efficient means to lower and raise stock exposure, which is less costly and more tax-friendly than selling/buying individual securities; 2) It has the potential to profit when stocks are declining and counteract losses incurred from the long-equity positions. Over the last twelve months, the hedge was successful, several times, in accomplishing the first objective; in terms of added value on an absolute basis, it was not productive, yet the negative impact for the FY was contained to -100 bps.
The Core ETF’s investment-grade fixed income (FY average 24% of assets) consisted of Developed Market Sovereign Debt (the most prominent weight at 19%), short-term U.S. Treasuries, Treasury Inflation Protected Securities (TIPS), International Corporate bonds, Emerging Market Sovereign Debt, and Mortgage Backed Securities (MBS). The latter five had minor weights of 1-2%. There was also a minimal stake in lower-quality debt through High Yield bonds (0.60%). Fixed income with a modest positive role included short-term U.S. Treasuries, EM/DM Sovereign Debt, and international Corporate bonds.
Like in FY 2021-2022, Gold was the only constituent in the Core ETF alternative space. It had comprised a portfolio weight of over 5% in 2020, was pared by about half in early 2022, and, in July this year, it was sold. We continue to view Gold as a sensible choice for diversification in personal portfolios; however, the opportunity cost of precious metals is up sharply, and for now, we have parked the proceeds in Treasury bills yielding more than 5%. For the partial year holding period, Gold was constructive to FY return by over +30 bps.
Highest Valuation Investments = Not A Surefire Formula For Success
This year, the Major League Baseball teams with the highest payrolls—New York Yankees, New York Mets, and San Diego Padres—spent $879 million combined. The result? They finished a collective 66 games out of first place. Their GMs should consider switching careers to civil service—specifically, the Federal Reserve Board or U.S. Treasury Department—where getting the minimum possible bang for the buck has become an art form.
A famous quote defines insanity as “doing the same thing over and over again and expecting different results.” Straying from that futile routine, the Federal Reserve Board instead engaged completely different means than in the past to attempt to change the trajectory. Even so, the results have been the same—and it’s driving active managers insane: The S&P 500 keeps winning, over and over again.
Federal outlays, federal debt, and the M27 money supply have all shot up around 50% in the last five years, while the Fed’s balance sheet has soared by 90%. The “upshot”: Real GDP8 cumulative growth per capita is a mere 8%—or 1.6% per year. Within the stock market, those at the top are the beneficiaries of that monetary and fiscal generosity. Thanks to the spectacular gains of its largest components, the S&P 500 returned 48% for the five years ended September 30th, nearly on pace with the expansion in money supply and the size of the federal government.
7A measure of the money supply including cash, checking deposits, and other types of deposits that are readily convertible to cash, such as CDs.
8A macroeconomic statistic that measures the value of the economic goods and services produced in a specific period, adjusted for price changes.
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Leuthold Funds
Letter to Shareholders (continued)
Meanwhile, the Russell 20009 and the MSCI ACWI Ex-USA10 were flat during that same period. On the bright side, when a bull market is convincingly on track, those disappointing results and cheap market segments should beat the Mets’ and Yankees’ tactic of directing investments to the chosen few with, perhaps, unjustifiably high valuations.
On the investment front, twelve-month advances by major headline indices obscured loads of challenges and fiascos suffered elsewhere across the broader marketplace. Among them were the continued hikes in the federal funds rate11 (+525 bps since mid-2022), epic-level bank collapses, rampant inflation, a looming recession, and the prospect of a record number of commercial property defaults.
On a personal note, in 2023, we also celebrated the life of a remarkable man, Steve Leuthold. Our friend, teacher, and April Fool’s Day enthusiast, Steve passed away peacefully at his home in Carlsbad, CA, on March 7, 2023. He was 85 years old. Steve became a nationally respected investment strategist, known for his unconventional nature and unpretentious style—poles apart from his manicured peers on Wall Street who donned lavish three-piece suits with all the glitzy accouterments. He explored a variety of occupations before carving out his niche on (actually “off”) Wall Street: fry cook, law student, history major, Cargill commodities-trader trainee, bar/dance-club proprietor, and singer/songwriter/guitar player in the rockabilly band Steve Carl & The Jags.
Steve understood the power of mentorship and, fittingly, delighted in sharing his life lessons with us, taught us his proprietary techniques and philosophy, and inspired excellence. He entrusted us to uphold his investment ideology and business integrity when he retired over a decade ago. After stepping back from the firm, Steve’s infinite drive and curiosity led him to pursue many personal aspirations he’d dreamed of achieving. And he did so.
A master of living life to the max, Steve delighted in practical jokes and being the ultimate contrarian. He was quick to laugh and find humor; people were naturally drawn to his charisma, and he made many lasting and loyal friends. Steve regarded his family as his greatest blessing; he cherished his children, adored his grandchildren, and embraced every moment of their time together.
A committed philanthropist, Steve preferred to give anonymously and lived modestly; he was brilliant yet humble. Steve loved music, beer, Jameson Irish Whiskey, and entertaining friends and strangers. We’re grateful for the many years we enjoyed as colleagues and friends of Steve, and we’re honored to continue sharing the legacy of his distinctive perspective toward investing. He will be greatly missed. If you have a personal story about an experience with Steve that you’d like to share, we would love to hear from you.
9A stock market index that measures the performance of the 2,000 smallest companies included in the Russell 3000 Index.
10Captures large- and mid-cap representation across 22 of 23 Developed Markets (DM) countries, excluding the United States.
11The target interest rate set by the Fed at which commercial banks borrow and lend their extra reserves to one another overnight.
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Leuthold Funds - 2023 Annual Report | 9 |
Leuthold Funds
Letter to Shareholders (continued)
Thank you for trusting us to manage your assets. Please let us know if you have any questions.
Sincerely,
Doug Ramsey, CFA, CMT
CIO & Co-Portfolio Manager
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Chun Wang, CFA, PRM
Co-Portfolio Manager | | Scott Opsal, CFA
Co-Portfolio Manager |
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Greg Swenson, CFA
Co-Portfolio Manager | | Phil Segner, CFA
Co-Portfolio Manager |
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Leuthold Funds
Letter to Shareholders (continued)
The Leuthold Core ETF is structured as a fund-of-funds and is subject to the same risks as the funds it holds. Investors will incur the expenses of the Core ETF in addition to fees of the underlying funds in the portfolio. As with all ETFs, Core ETF shares may be bought and sold in the secondary market at market prices. The market price typically should approximate the Core ETF net asset value per share (NAV), but the market price may sometimes be higher or lower than the NAV.
Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, high volatility, and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid, and more volatile than securities markets in more developed markets.
Leuthold Funds use short sales, which involve substantial risk. The loss on a short sale is, in principle, unlimited since there is no upward limit on the price of a shorted asset. The Funds may invest in Underlying Investments that principally invest in the commodities markets through investment in managed futures programs. Such investments may subject an Underlying Investment to greater volatility than investments in traditional securities.
The Funds may invest in Underlying Investments that primarily invest in high-yield securities (also known as junk bonds). Although high-yield securities generally pay higher rates of interest than investment-grade bonds, high-yield securities are speculative, high-risk investments that may cause income and principal losses for such Underlying Investments and, consequently, negatively affect the value of the investment in such Underlying Investments.
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Leuthold Funds - 2023 Annual Report | 11 |
Leuthold Funds
(Unaudited)
Leuthold Core Investment Fund
Allocation of Portfolio Holdings
September 30, 2023
Leuthold Global Fund
Allocation of Portfolio Holdings
September 30, 2023
^ Amount is less than 0.05%.
Reflected as a percent of absolute value of investments and securities sold short.
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Leuthold Funds
(Unaudited)
Leuthold Select Industries Fund
Allocation of Portfolio Holdings
September 30, 2023*
Leuthold Grizzly Short Fund
Allocation of Securities Sold Short
September 30, 2023
* Excludes short-term investments less than 5% of net assets.
Reflected as a percent of absolute value of investments and securities sold short.
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Leuthold Funds - 2023 Annual Report | 13 |
Leuthold Funds
(Unaudited)
Leuthold Core ETF
Allocation of Portfolio Holdings
September 30, 2023
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14 | Leuthold Funds - 2023 Annual Report |
Leuthold Core Investment Fund - Retail Class - LCORX
(Unaudited)
Average Annual Rate of Return For Periods Ended
September 30, 2023
| | | | | | | | | | | | | | | | | | | | |
| | 1 Year | | 3 Year | | 5 Year | | 10 Year | | Since
Inception |
Leuthold Core Investment Fund - Retail Class - LCORX | | | 10.75 | % | | | 5.79 | % | | | 5.04 | % | | | 5.94 | % | | | 7.74 | % |
S&P 500 Index | | | 21.62 | % | | | 10.15 | % | | | 9.92 | % | | | 11.91 | % | | | 9.35 | % |
Morningstar Tactical Allocation Category Average | | | 6.34 | % | | | 2.72 | % | | | 2.19 | % | | | 3.12 | % | | | 4.66 | % |
Bloomberg Global Aggregate Index | | | 2.24 | % | | | -6.93 | % | | | -1.62 | % | | | -0.44 | % | | | n/a | |
The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of the 500 stocks, which represent all major industries.
The Morningstar Tactical Allocation Category Average is a composite comprised of funds that incorporate a tactical asset allocation strategy which is the process by which the asset of a fund is changed on a short-term basis to take advantage of perceived differences in relative values of the various asset classes.
The Bloomberg Global Aggregate Index provides a broad-based measure of the global investment grade fixed-rate debt markets. It is comprised of the U.S. Aggregate, Pan-European Aggregate, the Asian-Pacific Aggregate, and the Canadian Aggregate Indices. It also includes a wide range of standard and customized sub-indices by liquidity constraint, sector, quality, and maturity.
Index and composite figures do not take any expenses, fees, or taxes into account, but mutual fund returns do. The indices and composite are used herein for comparative purposes in accordance with the U.S Securities and Exchange Commission regulations.
This chart assumes an initial gross investment of $10,000 made on November 20, 1995 (commencement of operations). Returns shown include the reinvestment of all dividends. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. The gross expense ratio per the most recently filed prospectus dated January 31, 2023 was 1.38%.
Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. For performance data current to the most recent month-end, please call Leuthold Funds’ Shareholder Services, toll-free: 1-800-273-6886.
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Leuthold Funds - 2023 Annual Report | 15 |
Leuthold Core Investment Fund - Institutional Class - LCRIX
(Unaudited)
Average Annual Rate of Return For Periods Ended
September 30, 2023
| | | | | | | | | | | | | | | | | | | | |
| | 1 Year | | 3 Year | | 5 Year | | 10 Year | | Since
Inception |
Leuthold Core Investment Fund - Institutional Class - LCRIX | | | 10.83 | % | | | 5.89 | % | | | 5.13 | % | | | 6.05 | % | | | 5.49 | % |
S&P 500 Index | | | 21.62 | % | | | 10.15 | % | | | 9.92 | % | | | 11.91 | % | | | 9.25 | % |
Morningstar Tactical Allocation Category Average | | | 6.34 | % | | | 2.72 | % | | | 2.19 | % | | | 3.12 | % | | | 3.16 | % |
Bloomberg Global Aggregate Index | | | 2.24 | % | | | -6.93 | % | | | -1.62 | % | | | -0.44 | % | | | 1.95 | % |
The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of the 500 stocks, which represent all major industries.
The Morningstar Tactical Allocation Category Average is a composite comprised of funds that incorporate a tactical asset allocation strategy which is the process by which the asset of a fund is changed on a short-term basis to take advantage of perceived differences in relative values of the various asset classes.
The Bloomberg Global Aggregate Index provides a broad-based measure of the global investment grade fixed-rate debt markets. It is comprised of the U.S. Aggregate, Pan-European Aggregate, the Asian-Pacific Aggregate, and the Canadian Aggregate Indices. It also includes a wide range of standard and customized sub-indices by liquidity constraint, sector, quality, and maturity.
Index and composite figures do not take any expenses, fees, or taxes into account, but mutual fund returns do. The indices and composite are used herein for comparative purposes in accordance with the U.S Securities and Exchange Commission regulations.
This chart assumes an initial gross investment of $1,000,000 made on January 31, 2006 (commencement of operations). Returns shown include the reinvestment of all dividends. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. The gross expense ratio per the most recently filed prospectus dated January 31, 2023 was 1.30%.
Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. For performance data current to the most recent month-end, please call Leuthold Funds’ Shareholder Services, toll-free: 1-800-273-6886.
| |
16 | Leuthold Funds - 2023 Annual Report |
Leuthold Global Fund - Retail Class - GLBLX
(Unaudited)
Average Annual Rate of Return For Periods Ended
September 30, 2023
| | | | | | | | | | | | | | | | | | | | |
| | 1 Year | | 3 Year | | 5 Year | | 10 Year | | Since
Inception |
Leuthold Global Fund -
Retail Class - GLBLX | | | 8.96 | % | | | 5.02 | % | | | 2.67 | % | | | 3.22 | % | | | 3.90 | % |
MSCI ACWI | | | 20.80 | % | | | 6.89 | % | | | 6.46 | % | | | 7.56 | % | | | 6.26 | % |
Bloomberg Global Aggregate Index | | | 2.24 | % | | | -6.93 | % | | | -1.62 | % | | | -0.44 | % | | | 1.09 | % |
S&P 500 Index | | | 21.62 | % | | | 10.15 | % | | | 9.92 | % | | | 11.91 | % | | | 10.42 | % |
The MSCI ACWI (All Country World Index) captures large- and mid-cap representation across 23 Developed Market (DM) and 27 Emerging Market (EM) countries.
The Bloomberg Global Aggregate Index provides a broad-based measure of the global investment grade fixed-rate debt markets. It is comprised of the U.S. Aggregate, Pan-European Aggregate, the Asian-Pacific Aggregate, and the Canadian Aggregate Indices. It also includes a wide range of standard and customized sub-indices by liquidity constraint, sector, quality, and maturity.
The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of the 500 stocks, which represent all major industries.
Index figures do not take any expenses, fees, or taxes into account, but mutual fund returns do. The indices are used herein for comparative purposes in accordance with the U.S Securities and Exchange Commission regulations.
This chart assumes an initial gross investment of $10,000 made on July 1, 2008 (commencement of operations). Returns shown include the reinvestment of all dividends. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. The gross expense ratio per the most recently filed prospectus dated January 31, 2023 was 2.00%.
Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. For performance data current to the most recent month-end, please call Leuthold Funds’ Shareholder Services, toll-free: 1-800-273-6886.
| |
Leuthold Funds - 2023 Annual Report | 17 |
Leuthold Global Fund - Institutional Class - GLBIX
(Unaudited)
Average Annual Rate of Return For Periods Ended
September 30, 2023
| | | | | | | | | | | | | | | | | | | | |
| | 1 Year | | 3 Year | | 5 Year | | 10 Year | | Since
Inception |
Leuthold Global Fund -
Institutional Class - GLBIX | | | 9.26 | % | | | 5.11 | % | | | 2.82 | % | | | 3.41 | % | | | 3.99 | % |
MSCI ACWI | | | 20.80 | % | | | 6.89 | % | | | 6.46 | % | | | 7.56 | % | | | 5.66 | % |
Bloomberg Global Aggregate Index | | | 2.24 | % | | | -6.93 | % | | | -1.62 | % | | | -0.44 | % | | | 1.00 | % |
S&P 500 Index | | | 21.62 | % | | | 10.15 | % | | | 9.92 | % | | | 11.91 | % | | | 9.79 | % |
The MSCI ACWI (All Country World Index) captures large- and mid-cap representation across 23 Developed Market (DM) and 27 Emerging Market (EM) countries.
The Bloomberg Global Aggregate Index provides a broad-based measure of the global investment grade fixed-rate debt markets. It is comprised of the U.S. Aggregate, Pan-European Aggregate, the Asian-Pacific Aggregate, and the Canadian Aggregate Indices. It also includes a wide range of standard and customized sub-indices by liquidity constraint, sector, quality, and maturity.
The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of the 500 stocks, which represent all major industries.
Index figures do not take any expenses, fees, or taxes into account, but mutual fund returns do. The indices are used herein for comparative purposes in accordance with the U.S Securities and Exchange Commission regulations.
This chart assumes an initial gross investment of $1,000,000 made on April 30, 2008 (commencement of operations). Returns shown include the reinvestment of all dividends. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. The gross expense ratio per the most recently filed prospectus dated January 31, 2023 was 1.91%.
Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. For performance data current to the most recent month-end, please call Leuthold Funds’ Shareholder Services, toll-free: 1-800-273-6886.
| |
18 | Leuthold Funds - 2023 Annual Report |
Leuthold Select Industries Fund - LSLTX
(Unaudited)
Average Annual Rate of Return For Periods Ended
September 30, 2023
| | | | | | | | | | | | | | | | | | | | |
| | 1 Year | | 3 Year | | 5 Year | | 10 Year | | Since
Inception |
Leuthold Select Industries Fund - LSLTX | | | 22.23 | % | | | 11.17 | % | | | 8.82 | % | | | 10.18 | % | | | 8.24 | % |
S&P 500 Index | | | 21.62 | % | | | 10.15 | % | | | 9.92 | % | | | 11.91 | % | | | 6.67 | % |
S&P MidCap 400 Index | | | 15.51 | % | | | 12.05 | % | | | 6.06 | % | | | 8.94 | % | | | 8.67 | % |
S&P 600 Index | | | 10.08 | % | | | 12.10 | % | | | 3.21 | % | | | 8.15 | % | | | 8.87 | % |
The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of the 500 stocks, which represent all major industries.
The S&P MidCap 400 Index is a capitalization-weighted index, which measures the performance of the mid-range sector of the U.S. stock market. The index was developed with a base level of 100 as of December 31, 1990.
The S&P 600 Index is an index of small-cap stocks which tracks a broad range of small-sized companies that meet specific liquidity and stability requirements. This is determined by specific metrics such as public float, market capitalization, and financial viability among a few other factors. Market capitalization, for instance, must fall between $450 million and $2.1 billion to ensure individual assets do not overlap with the larger S&P 500 or S&P MidCap 400 indexes.
Index figures do not take any expenses, fees, or taxes into account, but mutual fund returns do. The indices are used herein for comparative purposes in accordance with the U.S Securities and Exchange Commission regulations.
This chart assumes an initial gross investment of $10,000 made on June 19, 2000 (commencement of operations). Returns shown include the reinvestment of all dividends. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. The gross expense ratio per the most recently filed prospectus dated January 31, 2023 was 1.50%.
Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. For performance data current to the most recent month-end, please call Leuthold Funds’ Shareholder Services, toll-free: 1-800-273-6886.
| |
Leuthold Funds - 2023 Annual Report | 19 |
Leuthold Grizzly Short Fund - GRZZX
(Unaudited)
Average Annual Rate of Return For Periods Ended
September 30, 2023
| | | | | | | | | | | | | | | | | | | | |
| | 1 Year | | 3 Year | | 5 Year | | 10 Year | | Since
Inception |
Leuthold Grizzly Short Fund - GRZZX | | | -16.77 | % | | | -10.72 | % | | | -15.12 | % | | | -13.80 | % | | | -9.74 | % |
S&P 500 Index | | | 21.62 | % | | | 10.15 | % | | | 9.92 | % | | | 11.91 | % | | | 6.67 | % |
S&P MidCap 400 Index | | | 15.51 | % | | | 12.05 | % | | | 6.06 | % | | | 8.94 | % | | | 8.67 | % |
The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of the 500 stocks, which represent all major industries.
The S&P MidCap 400 Index is a capitalization-weighted index, which measures the performance of the mid-range sector of the U.S. stock market. The index was developed with a base level of 100 as of December 31, 1990.
Index figures do not take any expenses, fees, or taxes into account, but mutual fund returns do. The indices are used herein for comparative purposes in accordance with the U.S Securities and Exchange Commission regulations.
This chart assumes an initial gross investment of $10,000 made on June 19, 2000 (commencement of operations). Returns shown include the reinvestment of all dividends. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. The gross expense ratio per the most recently filed prospectus dated January 31, 2023 was 2.81%.
Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. For performance data current to the most recent month-end, please call Leuthold Funds’ Shareholder Services, toll-free: 1-800-273-6886.
| |
20 | Leuthold Funds - 2023 Annual Report |
Leuthold Core ETF - LCR
(Unaudited)
Average Annual Rate of Return For Periods Ended
September 30, 2023
| | | | | | | | | | | | | | | | |
| | | | 1 Year | | 3 Year | | Since Inception |
Leuthold Core ETF - LCR - NAV | | | | | | | 11.03 | % | | | 4.95 | % | | | 5.72 | % |
Leuthold Core ETF - LCR - Market | | | | | | | 11.01 | % | | | 4.91 | % | | | 5.72 | % |
S&P 500 Index | | | | | | | 21.62 | % | | | 10.15 | % | | | 9.59 | % |
Morningstar Tactical Allocation Category Average | | | | | | | 6.34 | % | | | 2.72 | % | | | n/a | |
Bloomberg Global Aggregate Index | | | | | | | 2.24 | % | | | -6.93 | % | | | -4.27 | % |
The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of the 500 stocks, which represent all major industries.
The Morningstar Tactical Allocation Category Average is a composite comprised of funds that incorporate a tactical asset allocation strategy which is the process by which the asset of a fund is changed on a short-term basis to take advantage of perceived differences in relative values of the various asset classes.
The Bloomberg Global Aggregate Index provides a broad-based measure of the global investment grade fixed-rate debt markets. It is comprised of the U.S. Aggregate, Pan-European Aggregate, the Asian-Pacific Aggregate, and the Canadian Aggregate Indices. It also includes a wide range of standard and customized sub-indices by liquidity constraint, sector, quality, and maturity.
Index and composite figures do not take any expenses, fees, or taxes into account, but ETF returns do. The indices and composite are used herein for comparative purposes in accordance with the U.S Securities and Exchange Commission regulations.
This chart assumes an initial gross investment of $10,000 made on January 6, 2020 (commencement of operations). Returns shown include the reinvestment of all dividends. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. The gross expense ratio per the most recently filed prospectus dated January 31, 2023 was 0.85%.
Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. For performance data current to the most recent month-end, please call Leuthold Funds’ Shareholder Services, toll-free: 1-800-273-6886.
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 21 |
Leuthold Core Investment Fund
Schedule of Investments
September 30, 2023
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 64.18% | |
Chemicals - 0.00% | | | | |
China Lumena New Materials Corp. (a)(b)(d)(e) | 20,950 | | $—
| |
| | | | |
Communications Equipment - 0.75% | |
Cisco Systems, Inc. | 69,126 | | 3,716,214 | |
| | | | |
Construction Materials - 2.60% | |
Cemex SAB de CV - ADR (a) | 370,229 | | 2,406,489 | |
CRH PLC (a)(b) | 63,064 | | 3,451,493 | |
Eagle Materials, Inc. | 13,728 | | 2,285,987 | |
Martin Marietta Materials, Inc. | 5,784 | | 2,374,216 | |
Summit Materials, Inc. - Class A (a) | 72,610 | | 2,261,075 | |
| | | 12,779,260 | |
Distributors - 0.59% | | | | |
LKQ Corp. | 58,743 | | 2,908,366 | |
Electronic Equipment, Instruments
& Components - 3.10% | |
Corning, Inc. | 53,308 | | 1,624,295 | |
Flex, Ltd. (a) | 152,050 | | 4,102,309 | |
Jabil, Inc. | 45,991 | | 5,835,798 | |
TE Connectivity, Ltd. | 29,825 | | 3,684,282 | |
| | | 15,246,684 | |
Energy Equipment &
Services - 3.18% | |
Baker Hughes Co. | 87,764 | | 3,099,824 | |
Halliburton Co. | 75,792 | | 3,069,576 | |
Liberty Energy, Inc. | 71,132 | | 1,317,365 | |
NOV, Inc. | 93,463 | | 1,953,377 | |
| | | | |
| Shares | | Fair Value | |
Energy Equipment & Services - 3.18%
(continued) | |
Schlumberger NV (b) | 63,177 | | $3,683,219
| |
Tenaris SA - ADR | 80,189 | | 2,533,972 | |
| | | 15,657,333 | |
Entertainment - 0.84% | | | | |
Netflix, Inc. (a) | 10,940 | | 4,130,944 | |
Financial Services - 1.71% | | | | |
Mastercard, Inc. - Class A | 11,986 | | 4,745,377 | |
Visa, Inc. - Class A | 15,958 | | 3,670,500 | |
| | | 8,415,877 | |
Ground Transportation - 1.77% | |
ArcBest Corp. | 12,891 | | 1,310,370 | |
JB Hunt Transport Services, Inc. | 12,055 | | 2,272,609 | |
Ryder System, Inc. | 14,215 | | 1,520,294 | |
Schneider National, Inc. - Class B | 45,434 | | 1,258,068 | |
TFI International, Inc. (b) | 18,257 | | 2,344,381 | |
| | | 8,705,722 | |
Health Care Providers &
Services - 7.66% | |
Cardinal Health, Inc. | 46,200 | | 4,011,084 | |
Cencora, Inc. | 22,996 | | 4,138,590 | |
Centene Corp. (a) | 43,833 | | 3,019,217 | |
Elevance Health, Inc. | 8,842 | | 3,849,984 | |
HCA Healthcare, Inc. | 11,846 | | 2,913,879 | |
Humana, Inc. | 11,080 | | 5,390,642 | |
McKesson Corp. | 11,707 | | 5,090,789 | |
Tenet Healthcare Corp. (a) | 21,741 | | 1,432,514 | |
UnitedHealth Group, Inc. | 15,539 | | 7,834,608 | |
| | | 37,681,307 | |
Leuthold Core Investment Fund
Schedule of Investments (continued)
September 30, 2023
| | |
22 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 64.18% (continued) | |
Household Durables - 5.31% | |
D.R. Horton, Inc. | 49,336 | | $5,302,140
| |
KB Home | 36,375 | | 1,683,435 | |
Lennar Corp. - Class A | 29,267 | | 3,284,635 | |
MDC Holdings, Inc. | 47,803 | | 1,970,917 | |
Meritage Homes Corp. | 21,184 | | 2,592,710 | |
PulteGroup, Inc. | 75,398 | | 5,583,222 | |
Taylor Morrison Home Corp. (a) | 54,911 | | 2,339,758 | |
Toll Brothers, Inc. | 45,573 | | 3,370,579 | |
| | | 26,127,396 | |
Insurance - 1.88% | | | | |
Everest Re Group, Ltd. (b) | 8,130 | | 3,021,677 | |
Reinsurance Group of America, Inc. | 21,566 | | 3,131,168 | |
Renaissance Re Holdings, Ltd. (b) | 15,594 | | 3,086,364 | |
| | | 9,239,209 | |
Interactive Media & Services - 2.92% | |
Alphabet, Inc. - Class A (a) | 48,291 | | 6,319,360 | |
Meta Platforms, Inc. -
Class A (a) | 26,759 | | 8,033,320 | |
| | | 14,352,680 | |
IT Services - 2.76% | | | | |
Akamai Technologies, Inc. (a) | 36,932 | | 3,934,735 | |
GoDaddy, Inc. - Class A (a) | 41,531 | | 3,093,229 | |
Okta, Inc. (a) | 45,573 | | 3,714,655 | |
Wix.com, Ltd. (a)(b) | 30,730 | | 2,821,014 | |
| | | 13,563,633 | |
| | | | |
| Shares | | Fair Value | |
Machinery - 2.59% | | | | |
AGCO Corp. | 9,338 | | $1,104,498
| |
Allison Transmission Holdings, Inc. | 28,361 | | 1,675,001 | |
Caterpillar, Inc. | 8,989 | | 2,453,997 | |
Cummins, Inc. | 4,808 | | 1,098,436 | |
Deere & Co. | 6,132 | | 2,314,094 | |
PACCAR, Inc. | 28,849 | | 2,452,742 | |
Terex Corp. | 28,919 | | 1,666,313 | |
| | | 12,765,081 | |
Media - 0.70% | | | | |
Charter Communications, Inc. - Class A (a) | 7,805 | | 3,432,795 | |
Metals & Mining - 1.50% | | | | |
Nucor Corp. | 13,519 | | 2,113,696 | |
Steel Dynamics, Inc. | 23,901 | | 2,562,665 | |
United States Steel Corp. | 83,342 | | 2,706,948 | |
| | | 7,383,309 | |
Oil, Gas & Consumable Fuels - 2.07% | |
Exxon Mobil Corp. | 48,151 | | 5,661,594 | |
Shell PLC - ADR | 70,241 | | 4,522,116 | |
| | | 10,183,710 | |
Pharmaceuticals - 1.16% | | | | |
Merck & Co., Inc. | 55,677 | | 5,731,947 | |
Semiconductors & Semiconductor
Equipment - 5.62% | |
Applied Materials, Inc. | 57,210 | | 7,920,725 | |
KLA Corp. | 11,846 | | 5,433,286 | |
Lam Research Corp. | 16,724 | | 10,482,101 | |
MKS Instruments, Inc. | 21,741 | | 1,881,466 | |
SolarEdge Technologies, Inc. (a)(b) | 14,982 | | 1,940,319 | |
| | | 27,657,897 | |
Leuthold Core Investment Fund
Schedule of Investments (continued)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 23 |
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 64.18% (continued) | |
Software - 6.99% | | | | |
Adobe, Inc. (a) | 6,411 | | $3,268,969
| |
Check Point Software Technologies, Ltd. (a)(b) | 22,577 | | 3,009,063 | |
Dolby Laboratories, Inc. - Class A | 26,898 | | 2,131,935 | |
Fortinet, Inc. (a) | 47,036 | | 2,760,072 | |
Microsoft Corp. | 43,274 | | 13,663,766 | |
Oracle Corp. | 51,636 | | 5,469,285 | |
Progress Software Corp. | 25,365 | | 1,333,692 | |
Qualys, Inc. (a) | 17,978 | | 2,742,544 | |
| | | 34,379,326 | |
Specialty Retail - 2.25% | | | | |
AutoNation, Inc. (a) | 19,860 | | 3,006,804 | |
The Home Depot, Inc. | 6,411 | | 1,937,148 | |
Penske Automotive Group, Inc. | 24,041 | | 4,016,289 | |
Williams-Sonoma, Inc. | 13,519 | | 2,100,853 | |
| | | 11,061,094 | |
Technology Hardware, Storage
& Peripherals - 2.13% | |
Apple, Inc. | 61,391 | | 10,510,753 | |
| | | | |
Trading Companies & Distributors - 3.55% | |
AerCap Holdings NV (a)(b) | 44,737 | | 2,803,668 | |
Boise Cascade Co. | 14,843 | | 1,529,423 | |
GMS, Inc. (a) | 21,393 | | 1,368,510 | |
MSC Industrial Direct Co., Inc. - Class A | 11,428 | | 1,121,658 | |
Rush Enterprises, Inc. - Class A | 38,465 | | 1,570,526 | |
| | | | |
| Shares | | Fair Value | |
Trading Companies & Distributors - 3.55%
(continued) | |
Textainer Group Holdings Ltd. | 41,880 | | $1,560,030
| |
United Rentals, Inc. | 10,522 | | 4,677,766 | |
WESCO International, Inc. | 19,860 | | 2,856,265 | |
| | | 17,487,846 | |
Wireless Telecommunication Services - 0.55% | |
T-Mobile US, Inc. (a) | 19,233 | | 2,693,582 | |
TOTAL COMMON STOCKS
(Cost $207,935,561) | | $315,811,965
| |
INVESTMENT COMPANIES - 8.12% | |
Exchange Traded Funds - 8.12% | |
iShares 0-5 Year High Yield Corporate Bond ETF | 71,800 | | 2,945,954 | |
iShares 0-5 Year TIPS Bond ETF | 52,362 | | 5,074,925 | |
iShares 5-10 Year Investment Grade Corporate Bond ETF | 150,335 | | 7,313,798 | |
iShares Core Japan Government Bond
ETF (b) | 415,000 | | 6,809,288 | |
iShares International Treasury Bond ETF | 202,287 | | 7,519,008 | |
SPDR Bloomberg International Treasury Bond ETF | 303,511 | | 6,446,573 | |
VanEck J. P. Morgan EM Local Currency Bond ETF | 160,715 | | 3,836,267 | |
TOTAL INVESTMENT COMPANIES
(Cost $40,775,062) | | $39,945,813
| |
Leuthold Core Investment Fund
Schedule of Investments (continued)
September 30, 2023
| | |
24 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | |
| Principal
Amount | | Fair Value | |
CORPORATE BONDS - 0.96% | |
Banks - 0.96% | | | | |
JPMorgan Chase & Co. | | | | |
1.500%, 01/27/2025 | | | $4,699,601
| |
TOTAL CORPORATE BONDS
(Cost $5,173,344) | | $4,699,601
| |
FOREIGN GOVERNMENT BONDS - 1.77% | |
French Republic Government
Bond OAT | | | |
3.000%, 05/25/2033EUR 8,500,000
| | $8,709,514
| |
TOTAL FOREIGN GOVERNMENT BONDS (Cost $8,904,390) | | $8,709,514
| |
UNITED STATES TREASURY
OBLIGATIONS - 6.64% | |
United States Treasury Bills - 3.49% | |
5.243%, 10/17/2023 (b)(f)(g)(h) | $9,000,000 | | $8,979,360
| |
4.880%, 11/2/2023 (f)(g) | 8,215,000 | | 8,180,216 | |
| | | 17,159,576 | |
United States Treasury Notes - 3.15% | |
2.625%, 04/15/2025 | 5,980,000 | | 5,751,545 | |
3.875%, 08/15/2033 | 10,300,000 | | 9,735,110 | |
| | | 15,486,655 | |
TOTAL UNITED STATES TREASURY OBLIGATIONS (Cost $33,014,965) | | $32,646,231
| |
| | | | |
| Shares | | Fair Value | |
SHORT-TERM INVESTMENTS - 15.49% | |
Money Market Funds - 15.49% | |
Fidelity Institutional Money Market Funds - Government Portfolio - Class I, 5.230% (c)(h) | 76,239,600 | | $76,239,600
| |
TOTAL SHORT-TERM INVESTMENTS
(Cost $76,239,600) | | $76,239,600
| |
| | | | |
Total Investments
(Cost $372,042,922) - 97.16% | | $478,052,724
| |
Other Assets in Excess of
Liabilities - 2.84% | | 13,986,397 | |
TOTAL NET ASSETS - 100.00% | | $492,039,121
| |
Percentages are stated as a percent of net assets.
ADRAmerican Depositary Receipt
EUREuro
(a)Non-income producing security.
(b)Foreign issued security.
(c)The rate quoted is the annualized seven-day effective yield as of September 30, 2023.
(d)Illiquid security. The fair value of this security totals $0 which represents an amount that rounds to 0.00% of total net assets.
(e)This security is currently being fair valued in accordance with procedures established by the Board of Directors of Leuthold Funds, Inc. and is deemed a Level 3 security as it is valued using significant unobservable inputs.
(f)Rate represents the annualized effective yield to maturity from the purchase price.
(g)Zero coupon security.
(h)All or a portion of the assets have been committed as collateral for open securites sold short.
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial services LLC (“S&P”). GICS® is a service mark of MSCI, Inc. and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
Leuthold Core Investment Fund
Schedule of Investments Sold Short - (a)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 25 |
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 11.57% | |
Aerospace & Defense - 0.73% | |
AeroVironment, Inc. | 3,689 | | $411,434
| |
Axon Enterprise, Inc. | 2,100 | | 417,879 | |
HEICO Corp. | 2,176 | | 352,360 | |
Kratos Defense & Security Solutions, Inc. | 33,154 | | 497,973 | |
L3Harris Technologies, Inc. | 3,931 | | 684,466 | |
Parsons Corp. | 7,168 | | 389,581 | |
RTX Corp. | 9,180 | | 660,685 | |
Spirit AeroSystems Holdings, Inc. - Class A | 11,697 | | 188,789 | |
| | | 3,603,167 | |
Automobile Components - 0.08% | |
Dorman Products, Inc. | 5,178 | | 392,285 | |
Automobiles - 0.19% | | | | |
Tesla, Inc. | 3,779 | | 945,581 | |
Banks - 0.32% | | | | |
Commerce Bancshares, Inc. | 8,164 | | 391,709 | |
First Financial Bankshares, Inc. | 15,139 | | 380,291 | |
Independent Bank Group, Inc. | 8,888 | | 351,520 | |
Seacoast Banking Corp. of Florida | 19,782 | | 434,413 | |
| | | 1,557,933 | |
Biotechnology - 0.15% | | | | |
Moderna, Inc. | 6,955 | | 718,382 | |
Broadline Retail - 0.37% | | | | |
Amazon.com, Inc. | 7,482 | | 951,112 | |
Coupang, Inc. | 51,681 | | 878,577 | |
| | | 1,829,689 | |
| | | | |
| Shares | | Fair Value | |
Capital Markets - 0.94% | | | | |
Blue Owl Capital, Inc. | 34,306 | | $444,606
| |
Brookfield Corp. (b) | 31,255 | | 977,344 | |
The Charles Schwab Corp. | 14,684 | | 806,152 | |
Cohen & Steers, Inc. | 7,240 | | 453,875 | |
LPL Financial Holdings, Inc. | 3,351 | | 796,365 | |
Nasdaq, Inc. | 15,518 | | 754,020 | |
Tradeweb Markets, Inc. - Class A | 4,700 | | 376,940 | |
| | | 4,609,302 | |
Chemicals - 0.51% | | | | |
Avient Corp. | 9,931 | | 350,763 | |
Corteva, Inc. | 13,251 | | 677,921 | |
International Flavors & Fragrances, Inc. | 5,936 | | 404,657 | |
Sensient Technologies Corp. | 6,433 | | 376,202 | |
Stepan Co. | 4,272 | | 320,272 | |
Tronox Holdings PLC | 30,213 | | 406,063 | |
| | | 2,535,878 | |
Commercial Services & Supplies - 0.45% | |
Casella Waste Systems, Inc. - Class A | 4,984 | | 380,279 | |
Rollins, Inc. | 18,186 | | 678,883 | |
Stericycle, Inc. | 8,991 | | 401,987 | |
Waste Connections, Inc. (b) | 5,659 | | 760,004 | |
| | | 2,221,153 | |
Communications Equipment - 0.15% | |
Ciena Corp. | 9,415 | | 444,953 | |
ViaSat, Inc. | 14,794 | | 273,097 | |
| | | 718,050 | |
Leuthold Core Investment Fund
Schedule of Investments Sold Short - (a) (continued)
September 30, 2023
| | |
26 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 11.57% (continued) | |
Containers & Packaging - 0.48% | |
Avery Dennison Corp. | 2,104 | | $384,338
| |
Ball Corp. | 16,992 | | 845,862 | |
Crown Holdings, Inc. | 5,049 | | 446,735 | |
Sealed Air Corp. | 8,055 | | 264,687 | |
Westrock Co. | 11,390 | | 407,762 | |
| | | 2,349,384 | |
Diversified Consumer Services - 0.15% | |
ADT, Inc. | 65,911 | | 395,466 | |
Service Corp. International | 6,296 | | 359,753 | |
| | | 755,219 | |
Electric Utilities - 0.16% | | | | |
Duke Energy Corp. | 9,006 | | 794,869 | |
Electrical Equipment - 0.14% | |
Ballard Power Systems, Inc. (b) | 72,555 | | 266,277 | |
Vicor Corp. | 7,368 | | 433,901 | |
| | | 700,178 | |
Entertainment - 0.46% | | | | |
ROBLOX Corp. - Class A | 19,244 | | 557,306 | |
Take-Two Interactive Software, Inc. | 6,925 | | 972,201 | |
The Walt Disney Co. | 9,313 | | 754,819 | |
| | | 2,284,326 | |
Financial Services - 0.07% | | | | |
Jack Henry & Associates, Inc. | 2,414 | | 364,852 | |
Food Products - 0.32% | | | | |
Hormel Foods Corp. | 18,463 | | 702,148 | |
J & J Snack Foods Corp. | 3,044 | | 498,151 | |
TreeHouse Foods, Inc. | 8,335 | | 363,239 | |
| | | 1,563,538 | |
| | | | |
| Shares | | Fair Value | |
Gas Utilities - 0.08% | | | | |
Southwest Gas Holdings, Inc. | 6,581 | | $397,558
| |
Ground Transportation - 0.09% | |
XPO, Inc. | 5,826 | | 434,969 | |
Health Care Equipment &
Supplies - 0.66% | |
Axonics, Inc. | 6,648 | | 373,086 | |
Baxter International, Inc. | 16,484 | | 622,106 | |
Becton Dickinson and Co. | 2,915 | | 753,615 | |
Masimo Corp. | 4,010 | | 351,597 | |
PROCEPT BioRobotics Corp. | 12,533 | | 411,208 | |
ResMed, Inc. | 4,859 | | 718,500 | |
| | | 3,230,112 | |
Health Care Providers &
Services - 0.24% | |
Guardant Health, Inc. | 10,670 | | 316,259 | |
Privia Health Group, Inc. | 16,860 | | 387,780 | |
R1 RCM, Inc. | 30,600 | | 461,142 | |
| | | 1,165,181 | |
Health Care Technology - 0.16% | |
Veeva Systems, Inc. - Class A | 3,866 | | 786,538 | |
Household Durables - 0.16% |
Newell Brands, Inc. | 48,327 | | 436,393 | |
Sonos, Inc. | 28,306 | | 365,430 | |
| | | 801,823 | |
Independent Power Producers &
Energy Traders - 0.14% | |
AES Corp. | 25,589 | | 388,953 | |
Ormat Technologies, Inc. | 4,450 | | 311,144 | |
| | | 700,097 | |
Leuthold Core Investment Fund
Schedule of Investments Sold Short - (a) (continued)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 27 |
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 11.57% (continued) | |
Industrial Real Estate Investment
Trusts (REITs) - 0.07% | |
Rexford Industrial Realty, Inc. | 6,633 | | $327,339
| |
Insurance - 0.23% | | | | |
Palomar Holdings, Inc. | 6,618 | | 335,863 | |
The Progressive Corp. | 5,686 | | 792,060 | |
| | | 1,127,923 | |
IT Services - 0.41% | | | | |
Cloudflare, Inc. - Class A | 12,417 | | 782,768 | |
Globant SA (b) | 2,251 | | 445,360 | |
Snowflake, Inc. - Class A | 5,051 | | 771,641 | |
| | | 1,999,769 | |
Leisure Products - 0.25% | | | | |
Hasbro, Inc. | 7,061 | | 467,015 | |
Mattel, Inc. | 22,181 | | 488,647 | |
Topgolf Callaway Brands Corp. | 19,399 | | 268,482 | |
| | | 1,224,144 | |
Life Sciences Tools & Services - 0.43% | |
Bio-Techne Corp. | 4,939 | | 336,198 | |
Danaher Corp. | 2,888 | | 716,513 | |
Illumina, Inc. | 2,111 | | 289,798 | |
Waters Corp. | 2,748 | | 753,529 | |
| | | 2,096,038 | |
Machinery - 0.21% | | | | |
Kornit Digital, Ltd. (b) | 13,892 | | 262,698 | |
Xylem, Inc. | 8,373 | | 762,194 | |
| | | 1,024,892 | |
| | | | |
| Shares | | Fair Value | |
Metals & Mining - 0.27% | | | | |
Alcoa Corp. | 8,941 | | $259,825
| |
Compass Minerals International, Inc. | 11,746 | | 328,301 | |
MP Materials Corp. | 17,595 | | 336,064 | |
Royal Gold, Inc. | 3,730 | | 396,611 | |
| | | 1,320,801 | |
Multi-Utilities - 0.28% | | | | |
CMS Energy Corp. | 13,179 | | 699,937 | |
Dominion Energy, Inc. | 14,691 | | 656,247 | |
| | | 1,356,184 | |
Oil, Gas & Consumable Fuels - 0.33% | |
New Fortress Energy, Inc. | 13,573 | | 444,923 | |
Occidental Petroleum Corp. | 12,319 | | 799,256 | |
Ovintiv, Inc. | 8,119 | | 386,221 | |
| | | 1,630,400 | |
Passenger Airlines - 0.20% | | | | |
Alaska Air Group, Inc. | 9,938 | | 368,501 | |
Southwest Airlines Co. | 23,610 | | 639,123 | |
| | | 1,007,624 | |
Personal Care Products - 0.10% | |
The Estee Lauder Companies, Inc. - Class A | 3,389 | | 489,880 | |
Professional Services - 0.73% |
Ceridian HCM Holding, Inc. | 5,697 | | 386,542 | |
Dun & Bradstreet Holdings, Inc. | 35,167 | | 351,318 | |
Equifax, Inc. | 3,370 | | 617,317 | |
Exponent, Inc. | 4,495 | | 384,772 | |
Paycom Software, Inc. | 2,695 | | 698,733 | |
Leuthold Core Investment Fund
Schedule of Investments Sold Short - (a) (continued)
September 30, 2023
| | |
28 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 11.57% (continued) | |
Professional Services - 0.73% (continued) |
Paylocity Holdings Corp. | 1,656 | | $300,895
| |
TransUnion | 12,190 | | 875,120 | |
| | | 3,614,697 | |
Semiconductors & Semiconductor
Equipment - 0.09% | |
Impinj, Inc. | 7,888 | | 434,077 | |
Software - 0.41% | | | | |
Gitlab, Inc. - Class A | 9,595 | | 433,886 | |
Unity Software, Inc. | 20,275 | | 636,432 | |
Zscaler, Inc. | 6,159 | | 958,279 | |
| | | 2,028,597 | |
Specialty Retail - 0.09% | | | | |
Warby Parker, Inc. - Class A | 32,768 | | 431,227 | |
Technology Hardware, Storage &
Peripherals - 0.10% | |
Western Digital Corp. | 10,666 | | 486,690 | |
Textiles, Apparel & Luxury Goods - 0.09% | |
Gildan Activewear, Inc. (b) | 15,082 | | 422,447 | |
Water Utilities - 0.08% | | | | |
California Water Service Group | 8,622 | | 407,907 | |
TOTAL COMMON STOCKS (Proceeds $60,919,542) | | $56,890,700
| |
| | | | |
| Shares | | Fair Value | |
INVESTMENT COMPANIES - 4.58% | |
Exchange Traded Funds - 3.41% | |
Consumer Staples Select Sector SPDR Fund | 31,934 | | $2,197,379
| |
Energy Select Sector SPDR Fund | 18,572 | | 1,678,723 | |
Invesco Nasdaq 100 ETF | 22,645 | | 3,338,100 | |
iShares Expanded Tech-Software Sector ETF | 4,420 | | 1,508,369 | |
Materials Select Sector SPDR Fund | 21,126 | | 1,659,447 | |
Real Estate Select Sector SPDR Fund | 90,321 | | 3,077,236 | |
SPDR S&P 500 ETF Trust | 14,384 | | 6,148,872 | |
SPDR S&P Regional Banking ETF | 18,402 | | 768,652 | |
Utilities Select Sector SPDR Fund | 36,945 | | 2,177,169 | |
TOTAL INVESTMENT COMPANIES
(Proceeds $23,427,782) | $22,553,947
| |
TOTAL SECURITIES SOLD SHORT | |
(Proceeds $84,347,324) - 16.15% | | $79,444,647
| |
Percentages are stated as a percent of net assets.
(a)Non-income producing security.
(b) Foreign issued security.
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial services LLC (“S&P”). GICS® is a service mark of MSCI, Inc. and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 29 |
Leuthold Global Fund
Schedule of Investments
September 30, 2023
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 62.86% | |
Automobiles - 3.01% | | | | |
Bayerische Motoren Werke AG (b) | 1,046 | | $106,239
| |
General Motors Co. | 3,530 | | 116,384 | |
Hyundai Motor Co. (b) | 500 | | 70,702 | |
Mazda Motor Corp. (b) | 8,900 | | 101,055 | |
Mercedes-Benz Group AG (b) | 1,533 | | 106,692 | |
Nissan Motor Co., Ltd. (b) | 20,900 | | 92,237 | |
Stellantis NV (b) | 7,170 | | 137,294 | |
| | | 730,603 | |
Banks - 3.13% | | | | |
ABN AMRO Bank NV (b) | 7,364 | | 104,072 | |
ANZ Group Holdings, Ltd. (b) | 4,724 | | 77,482 | |
Banco Santander SA - ADR | 28,798 | | 108,280 | |
The Bank of Nova Scotia (b) | 1,418 | | 64,647 | |
Barclays PLC - ADR | 10,144 | | 79,022 | |
Citigroup, Inc. | 1,555 | | 63,957 | |
Commerzbank AG (b) | 8,820 | | 100,101 | |
Mizuho Financial Group, Inc. - ADR | 34,289 | | 117,611 | |
Virgin Money UK PLC (b) | 22,466 | | 45,943 | |
| | | 761,115 | |
Capital Markets - 1.74% | | | | |
The Goldman Sachs Group, Inc. | 674 | | 218,086 | |
Raymond James Financial, Inc. | 796 | | 79,942 | |
Stifel Financial Corp. | 2,051 | | 126,014 | |
| | | 424,042 | |
| | | | |
| Shares | | Fair Value | |
Construction Materials - 3.25% | |
Asia Cement Corp. (b) | 54,000 | | $66,521
| |
Buzzi Unicem SpA (b) | 3,232 | | 88,322 | |
CRH PLC (a)(b) | 2,421 | | 132,501 | |
CSR, Ltd. (b) | 17,639 | | 63,568 | |
Eagle Materials, Inc. | 472 | | 78,597 | |
Heidelberg Materials AG (b) | 1,257 | | 97,355 | |
Holcim AG (b) | 1,846 | | 118,160 | |
Summit Materials, Inc. - Class A (a) | 2,464 | | 76,729 | |
Wienerberger AG (b) | 2,680 | | 67,832 | |
| | | 789,585 | |
Consumer Staples Distribution - 3.08% | |
The Andersons, Inc. | 1,885 | | 97,096 | |
George Weston, Ltd. (a)(b) | 961 | | 106,575 | |
Ingles Markets, Inc. - Class A | 886 | | 66,742 | |
J Sainsbury PLC (b) | 36,638 | | 112,829 | |
Koninklijke Ahold Delhaize NV (b) | 3,546 | | 106,875 | |
Marks & Spencer Group PLC (a)(b) | 39,069 | | 112,372 | |
The SPAR Group, Ltd. (b) | 10,623 | | 65,240 | |
Tsuruha Holdings, Inc. (b) | 1,200 | | 80,605 | |
| | | 748,334 | |
Distributors - 0.38% | | | | |
LKQ Corp. | 1,871 | | 92,633 | |
Electronic Equipment, Instruments
& Components - 0.21% | |
Taiwan Surface Mounting Technology Corp. (b) | 18,000 | | 51,384 | |
Leuthold Global Fund
Schedule of Investments (continued)
September 30, 2023
| | |
30 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 62.86% (continued) | |
Food Products - 2.93% | | | | |
Archer-Daniels-Midland Co. | 2,501 | | $188,625
| |
Bunge, Ltd. | 1,446 | | 156,530 | |
Fresh Del Monte Produce, Inc. | 3,127 | | 80,802 | |
Ingredion, Inc. | 1,207 | | 118,769 | |
Wilmar International, Ltd. (b) | 61,500 | | 167,359 | |
| | | 712,085 | |
Health Care Providers & Services - 3.87% | |
Centene Corp. (a) | 2,966 | | 204,298 | |
Elevance Health, Inc. | 459 | | 199,858 | |
Humana, Inc. | 422 | | 205,311 | |
Molina Healthcare, Inc. (a) | 368 | | 120,664 | |
UnitedHealth Group, Inc. | 418 | | 210,751 | |
| | | 940,882 | |
Household Durables - 4.94% | |
Barratt Developments PLC (b) | 10,403 | | 55,778 | |
Haseko Corp. (b) | 7,000 | | 89,235 | |
KB Home | 3,175 | | 146,939 | |
Lennar Corp. - Class A | 2,062 | | 231,418 | |
Meritage Homes Corp. | 1,952 | | 238,905 | |
Redrow PLC (b) | 10,524 | | 63,323 | |
Toll Brothers, Inc. | 2,783 | | 205,831 | |
Tri Pointe Homes, Inc. (a) | 6,138 | | 167,874 | |
| | | 1,199,303 | |
Insurance - 5.91% | | | | |
Axis Capital Holdings, Ltd. (b) | 1,926 | | 108,569 | |
DB Insurance Co., Ltd. (b) | 1,556 | | 103,100 | |
Everest Re Group, Ltd. (b) | 788 | | 292,876 | |
| | | | |
| Shares | | Fair Value | |
Insurance - 5.91% (continued) | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (b) | 926 | | $360,633
| |
Old Republic International Corp. | 4,932 | | 132,868 | |
Sompo Holdings, Inc. (b) | 3,500 | | 149,999 | |
Swiss Re AG (b) | 2,814 | | 288,999 | |
| | | 1,437,044 | |
IT Services - 2.58% | | | | |
Alten SA (b) | 464 | | 60,887 | |
Amdocs, Ltd. | 913 | | 77,139 | |
Cognizant Technology Solutions Corp. - Class A | 1,736 | | 117,597 | |
Computacenter PLC (b) | 2,092 | | 64,417 | |
Fujitsu Ltd. (b) | 1,000 | | 117,611 | |
NEC Corp. (b) | 1,400 | | 77,312 | |
Wipro, Ltd. - ADR | 23,304 | | 112,791 | |
| | | 627,754 | |
Machinery - 0.63% | | | | |
Daimler Truck Holding
AG (b) | 4,415 | | 152,866 | |
Metals & Mining - 2.16% | | | | |
ArcelorMittal SA - NYRS | 3,768 | | 94,313 | |
BlueScope Steel, Ltd. (b) | 6,061 | | 75,057 | |
Commercial Metals Co. | 1,842 | | 91,013 | |
Ryerson Holding Corp. | 2,037 | | 59,256 | |
Ternium SA - ADR | 2,927 | | 116,787 | |
United States Steel Corp. | 2,732 | | 88,736 | |
| | | 525,162 | |
Leuthold Global Fund
Schedule of Investments (continued)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 31 |
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 62.86% (continued) | |
Oil, Gas & Consumable Fuels - 8.70% | |
APA Corp. | 4,561 | | $187,457
| |
Canadian Natural Resources, Ltd. (b) | 5,051 | | 326,648 | |
Chord Energy Corp. | 1,085 | | 175,846 | |
Eni SpA (b) | 4,100 | | 130,872 | |
EOG Resources, Inc. | 2,403 | | 304,604 | |
Exxon Mobil Corp. | 1,891 | | 222,344 | |
Inpex Corp. (b) | 13,300 | | 199,478 | |
Petroleo Brasileiro SA - ADR | 8,352 | | 125,197 | |
PTT Exploration & Production PCL - NVDR | 27,400 | | 127,852 | |
Shell PLC - ADR | 2,142 | | 137,902 | |
Suncor Energy, Inc. | 4,443 | | 152,750 | |
Woodside Energy Group, Ltd. - ADR | 987 | | 22,987 | |
| | | 2,113,937 | |
Paper & Forest Products - 0.00% | |
China Forestry Holdings
Co., Ltd. (a)(b)(d)(e)2,484,000
| | — | |
Passenger Airlines - 2.83% | | | | |
Air France-KLM (a)(b) | 4,204 | | 52,614 | |
American Airlines Group, Inc. (a) | 5,949 | | 76,207 | |
Copa Holdings SA -
Class A (b) | 724 | | 64,523 | |
Delta Air Lines, Inc. | 4,690 | | 173,530 | |
Deutsche Lufthansa AG (a)(b) | 9,533 | | 75,439 | |
| | | | |
| Shares | | Fair Value | |
Passenger Airlines - 2.83% (continued) | |
Ryanair Holdings PLC - ADR (a) | 1,515 | | $147,273
| |
United Airlines Holdings, Inc. (a) | 2,303 | | 97,417 | |
| | | 687,003 | |
Semiconductors & Semiconductor
Equipment - 7.28% | |
Amkor Technology, Inc. | 4,563 | | 103,124 | |
Applied Materials, Inc. | 1,871 | | 259,040 | |
ASM International NV (b) | 736 | | 307,348 | |
Diodes, Inc. (a) | 1,386 | | 109,272 | |
Intel Corp. | 2,736 | | 97,265 | |
Lam Research Corp. | 542 | | 339,709 | |
Marvell Technology, Inc. | 2,836 | | 153,513 | |
Sino-American Silicon Products, Inc. (b) | 24,000 | | 117,047 | |
SK Hynix, Inc. (b) | 1,313 | | 111,165 | |
Skyworks Solutions, Inc. | 997 | | 98,294 | |
SUMCO Corp. (b) | 5,700 | | 74,174 | |
| | | 1,769,951 | |
Software - 4.21% | | | | |
A10 Networks, Inc. | 5,380 | | 80,861 | |
Check Point Software Technologies, Ltd. (a)(b) | 1,538 | | 204,985 | |
Dolby Laboratories, Inc. - Class A | 975 | | 77,279 | |
Dropbox, Inc. - Class A (a) | 4,665 | | 127,028 | |
Fuji Soft, Inc. (b) | 2,200 | | 71,160 | |
InterDigital, Inc. | 883 | | 70,852 | |
Justsystems Corp. (b) | 2,500 | | 49,993 | |
Progress Software Corp. | 1,413 | | 74,296 | |
Leuthold Global Fund
Schedule of Investments (continued)
September 30, 2023
| | |
32 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 62.86% (continued) | |
Software - 4.21% (continued) | | | |
PTC, Inc. (a) | 1,246 | | $176,533
| |
TeamViewer SE (a)(b) | 5,346 | | 89,853 | |
| | | 1,022,840 | |
Trading Companies & Distributors - 2.02% | |
ITOCHU Corp. (b) | 3,200 | | 115,564 | |
Mitsui & Co., Ltd. (b) | 3,900 | | 141,453 | |
Travis Perkins PLC (b) | 4,038 | | 41,285 | |
WESCO International, Inc. | 1,338 | | 192,431 | |
| | | 490,733 | |
TOTAL COMMON STOCKS
(Cost $13,440,193) | | $15,277,256
| |
PREFERRED STOCKS - 0.59% | |
Automobiles - 0.28% | | | | |
Volkswagen AG (b) | 601 | | $69,055
| |
Metals & Mining - 0.31% | | | | |
Gerdau SA - ADR | 15,689 | | 74,836 | |
TOTAL PREFERRED STOCKS
(Cost $160,355) | | $143,891
| |
INVESTMENT COMPANIES - 7.33% | |
Exchange Traded Funds - 7.33% | |
iShares 0-5 Year High Yield Corporate Bond ETF | 4,178 | | 171,423 | |
iShares 0-5 Year TIPS Bond ETF | 2,535 | | 245,692 | |
iShares 5-10 Year Investment Grade Corporate Bond ETF | 7,987 | | 388,567 | |
| | | | |
| Shares | | Fair Value | |
INVESTMENT COMPANIES - 7.33% (continued) |
Exchange Traded Funds - 7.33% (continued) | |
iShares Core Japan Government Bond ETF (b) | 23,600 | | $387,227
| |
iShares International Treasury Bond ETF | 10,823 | | 402,291 | |
VanEck J. P. Morgan EM Local Currency Bond ETF | 7,755 | | 185,112 | |
TOTAL EXCHANGE TRADED FUNDS (Cost $1,812,350) | | $1,780,312
| |
| | | | |
| Principal
Amount | | Fair Value | |
CORPORATE BONDS - 1.98% | |
Banks - 1.98% | | | | |
JPMorgan Chase & Co. | | | | |
1.500%, 01/27/2025 | $470,000
| | $480,177
| |
TOTAL CORPORATE BONDS (Cost $513,186) | | $480,177
| |
FOREIGN GOVERNMENT BONDS - 1.77% | |
French Republic Government
Bond OAT 3.000%,
05/25/2033 (b)EUR420,000
| | $430,352
| |
TOTAL FOREIGN GOVERNMENT BONDS (Cost $439,982) | | $430,352
| |
UNITED STATES TREASURY OBLIGATIONS - 7.00% |
United States Treasury Bills - 3.63% | |
5.243%, 10/17/2023
(f)(g)(h) | $500,000
| | $498,853
| |
4.880%, 11/02/2023 (f)(g) | 385,000 | | 383,370 | |
| | | 882,223 | |
Leuthold Global Fund
Schedule of Investments (continued)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 33 |
| | | | |
| Principal
Amount | | Fair Value | |
UNITED STATES TREASURY OBLIGATIONS - 7.00% (continued) |
United States Treasury Notes - 3.37% |
2.625%, 04/15/2025 | 350,000 | | $336,629
| |
3.875%, 08/15/2033 | 510,000 | | 482,030 | |
| | | 818,659 | |
TOTAL UNITED STATES TREASURY OBLIGATIONS (Cost $1,719,593) | | $1,700,882
| |
| | | | |
| Shares | | Fair Value | |
SHORT-TERM INVESTMENTS - 14.26% |
Money Market Funds - 14.26% |
Fidelity Institutional Money Market Funds - Government Portfolio - Class I, 5.230% (c)(h)3,464,463
| | $3,464,463
| |
TOTAL SHORT-TERM
INVESTMENTS
(Cost $3,464,463) | $3,464,463
| |
| | | | |
Total Investments
(Cost $21,550,122) - 95.79% | | $23,277,333
| |
Other Assets in Excess of Liabilities - 4.21% | | 1,022,972 | |
TOTAL NET ASSETS - 100.00% | | $24,300,305
| |
Percentages are stated as a percent of net assets.
ADRAmerican Depositary Receipt
EUREuro
NVDRNon Voting Depositary Receipt
NYRSNew York Registry Shares
(a)Non-income producing security.
(b)Foreign issued security.
(c)The rate quoted is the annualized seven-day effective yield as of September 30, 2023.
(d)Illiquid security. The fair value of this security totals $0 which represents an amount that rounds to 0.00% of total net assets.
(e)This security is currently being fair valued in accordance with procedures established by the Board of Directors of Leuthold Funds, Inc. and is deemed a Level 3 security as it is valued using significant unobservable inputs.
(f)Rate represents the annualized effective yield to maturity from the purchase price.
(g)Zero coupon security.
(h)All or a portion of the assets have been committed as collateral for open securities sold short.
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
Leuthold Global Fund
Schedule of Investments (continued)
September 30, 2023
| | |
34 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | |
| Fair
Value | | Percentage
of Total
Investments | |
CURRENCY EXPOSURE | |
September 30, 2023 | | | | |
Australian Dollar | $216,106
| | 0.93 | % |
British Pound | 495,946 | | 2.13 | |
Canadian Dollar | 106,575 | | 0.46 | |
Euro | 2,994,007 | | 12.86 | |
Hong Kong Dollar | — | | 0.00 | |
Japanese Yen | 1,747,103 | | 7.51 | |
New Taiwan Dollar | 234,951 | | 1.01 | |
Singapore Dollar | 167,359 | | 0.72 | |
South African Rand | 65,240 | | 0.28 | |
South Korea Won | 284,967 | | 1.22 | |
Swiss Franc | 407,159 | | 1.75 | |
Thai Baht | 127,852 | | 0.55 | |
US Dollar | 16,430,068 | | 70.58 | |
Total Investments | $23,277,333
| | 100.00 | % |
| | | | |
| Fair
Value | | Percentage
of Total
Investments | |
PORTFOLIO DIVERSIFICATION | |
September 30, 2023 | | | | |
Australia | $239,094
| | 1.03 | % |
Austria | 67,832 | | 0.29 | |
Bermuda | 401,444 | | 1.72 | |
Brazil | 200,033 | | 0.86 | |
Canada | 650,620 | | 2.80 | |
Cayman Islands | 80,802 | | 0.35 | |
China | — | | 0.00 | |
France | 543,853 | | 2.34 | |
Germany | 1,158,233 | | 4.98 | |
India | 112,791 | | 0.48 | |
Ireland | 279,774 | | 1.20 | |
Israel | 204,985 | | 0.88 | |
Italy | 219,194 | | 0.94 | |
Japan | 1,864,714 | | 8.01 | |
Luxembourg | 211,100 | | 0.91 | |
Netherlands | 655,589 | | 2.82 | |
Panama | 64,523 | | 0.28 | |
Singapore | 167,359 | | 0.72 | |
South Africa | 65,240 | | 0.28 | |
South Korea | 284,967 | | 1.22 | |
Spain | 108,280 | | 0.46 | |
Switzerland | 407,159 | | 1.75 | |
Taiwan | 234,951 | | 1.01 | |
Thailand | 127,852 | | 0.55 | |
United Kingdom | 712,871 | | 3.06 | |
United States | 14,214,073 | | 61.06 | |
Total Investments | $23,277,333
| | 100.00 | % |
Leuthold Global Fund
Schedule of Investments Sold Short - (a)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 35 |
| | | | | |
| | Shares | | Fair Value | |
COMMON STOCKS - 4.99% | |
Aerospace & Defense - 0.32% | |
AeroVironment, Inc. | 79 | | $8,811
| |
Axon Enterprise, Inc. | 45 | | 8,954 | |
HEICO Corp. | 46 | | 7,449 | |
Kratos Defense & Security Solutions, Inc. | 705 | | 10,589 | |
L3Harris Technologies, Inc. | 84 | | 14,626 | |
Parsons Corp. | 153 | | 8,316 | |
RTX Corp. | 195 | | 14,034 | |
Spirit AeroSystems Holdings, Inc. - Class A | 250 | | 4,035 | |
| | | 76,814 | |
Automobile Components - 0.03% | |
Dorman Products, Inc. | 110 | | 8,334 | |
Automobiles - 0.08% | | | | |
Tesla, Inc. | 80 | | 20,018 | |
Banks - 0.14% | | | | |
Commerce Bancshares, Inc. | 174 | | 8,348 | |
First Financial Bankshares, Inc. | 323 | | 8,114 | |
Independent Bank Group, Inc. | 189 | | 7,475 | |
Seacoast Banking Corp. of Florida | 421 | | 9,245 | |
| | | 33,182 | |
Biotechnology - 0.06% | | | | |
Moderna, Inc. | 148 | | 15,287 | |
Broadline Retail - 0.16% | | | | |
Amazon.com, Inc. | 159 | | 20,212 | |
Coupang, Inc. | 1,100 | | 18,700 | |
| | | 38,912 | |
| | | | | |
| | Shares | | Fair Value | |
Capital Markets - 0.40% | | | | |
Blue Owl Capital, Inc. | 730 | | $9,461
| |
Brookfield Corp. (b) | 665 | | 20,794 | |
The Charles Schwab Corp. | 312 | | 17,129 | |
Cohen & Steers, Inc. | 154 | | 9,654 | |
LPL Financial Holdings, Inc. | 71 | | 16,873 | |
Nasdaq, Inc. | 330 | | 16,035 | |
Tradeweb Markets, Inc. - Class A | 100 | | 8,020 | |
| | | 97,966 | |
Chemicals - 0.22% | | | | |
Avient Corp. | 211 | | 7,453 | |
Corteva, Inc. | 282 | | 14,427 | |
International Flavors & Fragrances, Inc. | 126 | | 8,589 | |
Sensient Technologies Corp. | 137 | | 8,012 | |
Stepan Co. | 91 | | 6,822 | |
Tronox Holdings PLC - ADR | 644 | | 8,655 | |
| | | 53,958 | |
Commercial Services & Supplies - 0.19% | |
Casella Waste Systems, Inc. - Class A | 106 | | 8,088 | |
Rollins, Inc. | 387 | | 14,447 | |
Stericycle, Inc. | 191 | | 8,539 | |
Waste Connections, Inc. (b) | 120 | | 16,116 | |
| | | 47,190 | |
Communications Equipment - 0.06% | |
Ciena Corp. | 200 | | 9,452 | |
ViaSat, Inc. | 315 | | 5,815 | |
| | | 15,267 | |
Leuthold Global Fund
Schedule of Investments Sold Short - (a) (continued)
September 30, 2023
| | |
36 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | | |
| | Shares | | Fair Value | |
COMMON STOCKS - 4.99% (continued) | |
Containers & Packaging - 0.21% | |
Avery Dennison Corp. | 45 | | $8,220
| |
Ball Corp. | 362 | | 18,020 | |
Crown Holdings, Inc. | 108 | | 9,556 | |
Sealed Air Corp. | 171 | | 5,619 | |
Westrock Co. | 243 | | 8,700 | |
| | | 50,115 | |
Diversified Consumer Services - 0.07% |
ADT, Inc. | 1,403 | | 8,418 | |
Service Corp. International | 134 | | 7,657 | |
| | | 16,075 | |
Electric Utilities - 0.07% | | | | |
Duke Energy Corp. | 192 | | 16,946 | |
Electrical Equipment - 0.06% | |
Ballard Power Systems, Inc. (b) | 1,545 | | 5,670 | |
Vicor Corp. | 157 | | 9,246 | |
| | | 14,916 | |
Entertainment - 0.20% |
ROBLOX Corp. - Class A | 410 | | 11,873 | |
Take-Two Interactive Software, Inc. | 148 | | 20,778 | |
The Walt Disney Co. | 198 | | 16,048 | |
| | | 48,699 | |
Financial Services - 0.03% |
Jack Henry & Associates, Inc. | 51 | | 7,708 | |
| | | | | |
| | Shares | | Fair Value | |
Food Products - 0.14% |
Hormel Foods Corp. | 393 | | $14,946
| |
J & J Snack Foods Corp. | 65 | | 10,637 | |
TreeHouse Foods, Inc. | 177 | | 7,714 | |
| | | 33,297 | |
Gas Utilities - 0.03% |
Southwest Gas Holdings, Inc. | 140 | | 8,457 | |
Ground Transportation - 0.04% | |
XPO, Inc. | 124 | | 9,258 | |
Health Care Equipment & Supplies - 0.28% |
Axonics, Inc. | 142 | | 7,969 | |
Baxter International, Inc. | 351 | | 13,247 | |
Becton Dickinson and Co. | 62 | | 16,029 | |
Masimo Corp. | 85 | | 7,453 | |
PROCEPT BioRobotics Corp. | 267 | | 8,760 | |
ResMed, Inc. | 103 | | 15,230 | |
| | | 68,688 | |
Health Care Providers & Services - 0.10% |
Guardant Health, Inc. | 227 | | 6,728 | |
Privia Health Group, Inc. | 359 | | 8,257 | |
R1 RCM, Inc. | 652 | | 9,826 | |
| | | 24,811 | |
Health Care Technology - 0.07% |
Veeva Systems, Inc. - Class A | 82 | | 16,683 | |
Leuthold Global Fund
Schedule of Investments Sold Short - (a) (continued)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 37 |
| | | | | |
| | Shares | | Fair Value | |
COMMON STOCKS - 4.99% (continued) | |
Household Durables - 0.07% |
Newell Brands, Inc. | 1,033 | | $9,328
| |
Sonos, Inc. | 603 | | 7,785 | |
| | | 17,113 | |
Independent Power Producers
& Energy Traders - 0.06% |
AES Corp. | 545 | | 8,284 | |
Ormat Technologies, Inc. | 95 | | 6,642 | |
| | | | 14,926 | |
Industrial Real Estate Investment
Trusts (REITs) - 0.03% |
Rexford Industrial Realty, Inc. | 141 | | 6,958 | |
Insurance - 0.10% | | | | |
Palomar Holdings, Inc. | 141 | | 7,156 | |
The Progressive Corp. | 121 | | 16,855 | |
| | | 24,011 | |
IT Services - 0.18% |
Cloudflare, Inc. - Class A | 264 | | 16,643 | |
Globant SA (b) | 48 | | 9,497 | |
Snowflake, Inc. - Class A | 108 | | 16,499 | |
| | | 42,639 | |
Leisure Products - 0.11% |
Hasbro, Inc. | 150 | | 9,921 | |
Mattel, Inc. | 472 | | 10,398 | |
Topgolf Callaway Brands Corp. | 413 | | 5,716 | |
| | | 26,035 | |
| | | | | |
| | Shares | | Fair Value | |
Life Sciences Tools & Services - 0.18% |
Bio-Techne Corp. | 105 | | $7,147
| |
Danaher Corp. | 62 | | 15,382 | |
Illumina, Inc. | 45 | | 6,178 | |
Waters Corp. | 58 | | 15,904 | |
| | | 44,611 | |
Machinery - 0.09% |
Kornit Digital, Ltd. (b) | 295 | | 5,579 | |
Xylem, Inc. | 178 | | 16,203 | |
| | | 21,782 | |
Metals & Mining - 0.12% |
Alcoa Corp. | 190 | | 5,522 | |
Compass Minerals International, Inc. | 252 | | 7,043 | |
MP Materials Corp. | 375 | | 7,163 | |
Royal Gold, Inc. | 80 | | 8,506 | |
| | | 28,234 | |
Multi-Utilities - 0.12% |
CMS Energy Corp. | 280 | | 14,871 | |
Dominion Energy, Inc. | 313 | | 13,981 | |
| | | 28,852 | |
Oil, Gas & Consumable Fuels - 0.14% |
New Fortress Energy, Inc. | 289 | | 9,473 | |
Occidental Petroleum Corp. | 262 | | 16,999 | |
Ovintiv, Inc. | 173 | | 8,230 | |
| | | 34,702 | |
Passenger Airlines - 0.09% |
Alaska Air Group, Inc. | 212 | | 7,861 | |
Southwest Airlines Co. | 503 | | 13,616 | |
| | | 21,477 | |
Leuthold Global Fund
Schedule of Investments Sold Short - (a) (continued)
September 30, 2023
| | |
38 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | | |
| | Shares | | Fair Value | |
COMMON STOCKS - 4.99% (continued) |
Personal Care Products - 0.04% |
The Estee Lauder Companies, Inc. - Class A | 72 | | $10,408
| |
Professional Services - 0.32% |
Ceridian HCM Holding, Inc. | 121 | | 8,210 | |
Dun & Bradstreet Holdings, Inc. | 748 | | 7,473 | |
Equifax, Inc. | 72 | | 13,189 | |
Exponent, Inc. | 96 | | 8,218 | |
Paycom Software, Inc. | 57 | | 14,778 | |
Paylocity Holdings Corp. | 35 | | 6,359 | |
TransUnion | 260 | | 18,665 | |
| | | 76,892 | |
Semiconductors & Semiconductor Equipment - 0.04% |
Impinj, Inc. | 168 | | 9,245 | |
Software - 0.18% |
Gitlab, Inc. - Class A | 204 | | 9,225 | |
Unity Software, Inc. | 434 | | 13,623 | |
Zscaler, Inc. | 132 | | 20,538 | |
| | | 43,386 | |
Specialty Retail - 0.04% |
Warby Parker, Inc. - Class A | 698 | | 9,186 | |
Technology Hardware, Storage
& Peripherals - 0.04% |
Western Digital Corp. | 227 | | 10,358 | |
Textiles, Apparel & Luxury Goods - 0.04% |
Gildan Activewear, Inc. (b) | 321 | | 8,991 | |
| | | | | |
| | Shares | | Fair Value | |
Water Utilities - 0.04% |
California Water Service Group | 184 | | $8,705
| |
TOTAL COMMON STOCKS (Proceeds $1,304,023) | | $1,211,092
| |
| | | | | |
| | | | |
INVESTMENT COMPANIES - 10.03% |
Exchange Traded Funds - 10.03% |
Consumer Staples Select Sector SPDR Fund | 680 | | 46,791 | |
Energy Select Sector SPDR Fund | 395 | | 35,704 | |
Invesco Nasdaq 100 ETF | 482 | | 71,052 | |
iShares Expanded Tech-Software Sector ETF | 94 | | 32,078 | |
iShares MSCI ACWI ETF | 10,973 | | 1,013,576 | |
iShares MSCI EAFE ETF | 11,213 | | 772,800 | |
iShares MSCI Emerging Markets ETF | 4,540 | | 172,293 | |
Materials Select Sector SPDR Fund | 450 | | 35,348 | |
Real Estate Select Sector SPDR Fund | 1,923 | | 65,517 | |
SPDR S&P 500 ETF Trust | 305 | | 130,381 | |
SPDR S&P Regional Banking ETF | 390 | | 16,290 | |
Utilities Select Sector SPDR Fund | 787 | | 46,378 | |
TOTAL INVESTMENT COMPANIES (Proceeds $2,523,255) | $2,438,208
| |
TOTAL SECURITIES SOLD SHORT |
(Proceeds $3,827,278) - 15.02% | | $3,649,300
| |
Leuthold Global Fund
Schedule of Investments Sold Short - (a) (continued)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 39 |
Percentages are stated as a percent of net assets.
(a)Non-income producing security.
(b) Foreign issued security.
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
| | |
40 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
Leuthold Select Industries Fund
Schedule of Investments
September 30, 2023
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 99.40% | |
Communications Equipment - 1.19% | |
Cisco Systems, Inc. | 3,004 | | $161,495
| |
| | | | |
Construction Materials - 4.05% | | | |
Cemex SAB de CV -
ADR (a) | 15,982 | | 103,883 | |
CRH PLC (a)(b) | 2,710 | | 148,318 | |
Eagle Materials, Inc. | 593 | | 98,746 | |
Martin Marietta
Materials, Inc. | 249 | | 102,210 | |
Summit Materials, Inc. - Class A (a) | 3,136 | | 97,655 | |
| | | 550,812 | |
Distributors - 0.91% | | | | |
LKQ Corp. | 2,498 | | 123,676 | |
| | | | |
Electronic Equipment,
Instruments & Components - 4.82% | | | |
Corning, Inc. | 2,313 | | 70,477 | |
Flex, Ltd. (a) | 6,534 | | 176,287 | |
Jabil, Inc. | 1,978 | | 250,989 | |
TE Connectivity, Ltd. | 1,281 | | 158,242 | |
| | | 655,995 | |
Energy Equipment & Services - 4.99% | |
Baker Hughes Co. | 3,831 | | 135,311 | |
Halliburton Co. | 3,308 | | 133,974 | |
Liberty Energy, Inc. | 3,057 | | 56,616 | |
NOV, Inc. | 4,017 | | 83,955 | |
Schlumberger NV (b) | 2,750 | | 160,325 | |
Tenaris SA - ADR | 3,446 | | 108,893 | |
| | | 679,074 | |
| | | | |
| Shares | | Fair Value | |
Entertainment - 1.32% | | | | |
Netflix, Inc. (a) | 477 | | $180,115
| |
| | | | |
Financial Services - 2.57% | | | | |
Mastercard, Inc. - Class A | 499 | | 197,559 | |
Visa, Inc. - Class A | 662 | | 152,267 | |
| | | 349,826 | |
Ground Transportation - 2.77% | |
ArcBest Corp. | 559 | | 56,822 | |
JB Hunt Transport
Services, Inc. | 522 | | 98,408 | |
Ryder System, Inc. | 617 | | 65,988 | |
Schneider National, Inc. -
Class A | 1,973 | | 54,632 | |
TFI International, Inc. (b) | 787 | | 101,059 | |
| | | 376,909 | |
Health Care Providers
& Services - 11.79% | |
Cardinal Health, Inc. | 2,014 | | 174,856 | |
Cencora, Inc. | 985 | | 177,270 | |
Centene Corp. (a) | 1,837 | | 126,533 | |
Elevance Health, Inc. | 369 | | 160,670 | |
HCA Healthcare, Inc. | 516 | | 126,926 | |
Humana, Inc. | 459 | | 223,313 | |
McKesson Corp. | 512 | | 222,643 | |
Tenet Healthcare Corp. (a) | 952 | | 62,727 | |
UnitedHealth Group, Inc. | 654 | | 329,740 | |
| | | 1,604,678 | |
Household Durables - 8.10% | |
D.R. Horton, Inc. | 2,076 | | 223,108 | |
KB Home | 1,543 | | 71,410 | |
Lennar Corp. - Class A | 1,242 | | 139,390 | |
MDC Holdings, Inc. | 2,063 | | 85,057 | |
Leuthold Select Industries Fund
Schedule of Investments (continued)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 41 |
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 99.40% (continued) | |
Household Durables - 8.10% (continued) | |
Meritage Homes Corp. | 886 | | $108,437
| |
PulteGroup, Inc. | 3,145 | | 232,887 | |
Taylor Morrison
Home Corp. (a) | 2,370 | | 100,986 | |
Toll Brothers, Inc. | 1,909 | | 141,190 | |
| | | 1,102,465 | |
Insurance - 2.96% | | | | |
Everest Re Group, Ltd. (b) | 355 | | 131,943 | |
Reinsurance Group of
America, Inc. | 941 | | 136,624 | |
RenaissanceRe Holdings,
Ltd. (b) | 681 | | 134,783 | |
| | | 403,350 | |
Interactive Media & Services - 4.57% | |
Alphabet, Inc. - Class A (a) | 2,090 | | 273,497 | |
Meta Platforms, Inc. -
Class A (a) | 1,160 | | 348,244 | |
| | | 621,741 | |
IT Services - 4.33% | | | | |
Akamai Technologies, Inc. (a) | 1,613 | | 171,849 | |
GoDaddy, Inc. - Class A (a) | 1,792 | | 133,468 | |
Okta, Inc. (a) | 1,980 | | 161,390 | |
Wix.com, Ltd. (a)(b) | 1,335 | | 122,553 | |
| | | 589,260 | |
Machinery - 4.01% | | | | |
AGCO Corp. | 397 | | 46,957 | |
Allison Transmission
Holdings, Inc. | 1,205 | | 71,167 | |
Caterpillar, Inc. | 389 | | 106,197 | |
| | | | |
| Shares | | Fair Value | |
Machinery - 4.01% (continued) | |
Cummins, Inc. | 212 | | $48,434
| |
Deere & Co. | 262 | | 98,874 | |
PACCAR, Inc. | 1,220 | | 103,724 | |
Terex Corp. | 1,228 | | 70,757 | |
| | | 546,110 | |
Media - 1.08% | | | | |
Charter Communications, Inc. - Class A (a) | 335 | | 147,340 | |
| | | | |
Metals & Mining - 2.36% | | | | |
Nucor Corp. | 588 | | 91,934 | |
Steel Dynamics, Inc. | 1,041 | | 111,616 | |
United States Steel Corp. | 3,628 | | 117,837 | |
| | | 321,387 | |
Oil, Gas & Consumable Fuels - 3.23% | |
Exxon Mobil Corp. | 2,090 | | 245,742 | |
Shell PLC - ADR | 3,003 | | 193,333 | |
| | | 439,075 | |
Pharmaceuticals - 1.80% | | | | |
Merck & Co., Inc. | 2,382 | | 245,227 | |
| | | | |
Semiconductors & Semiconductor
Equipment - 8.43% | | | |
Applied Materials, Inc. | 2,371 | | 328,265 | |
KLA Corp. | 489 | | 224,285 | |
Lam Research Corp. | 696 | | 436,232 | |
MKS Instruments, Inc. | 901 | | 77,972 | |
SolarEdge
Technologies, Inc. (a)(b) | 618 | | 80,037 | |
| | | 1,146,791 | |
Leuthold Select Industries Fund
Schedule of Investments (continued)
September 30, 2023
| | |
42 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | |
| Shares | | Fair Value | |
COMMON STOCKS - 99.40% (continued) | |
Software - 10.91% | | | | |
Adobe, Inc. (a) | 285 | | $145,321
| |
Check Point Software Technologies, Ltd. (a)(b) | 979 | | 130,481 | |
Dolby Laboratories, Inc. -
Class A | 1,160 | | 91,942 | |
Fortinet, Inc. (a) | 2,039 | | 119,648 | |
Microsoft Corp. | 1,856 | | 586,032 | |
Oracle Corp. | 2,227 | | 235,884 | |
Progress Software Corp. | 1,082 | | 56,892 | |
Qualys, Inc. (a) | 774 | | 118,074 | |
| | | 1,484,274 | |
Specialty Retail - 3.48% | | | | |
AutoNation, Inc. (a) | 871 | | 131,870 | |
The Home Depot, Inc. | 275 | | 83,094 | |
Penske Automotive
Group, Inc. | 1,022 | | 170,735 | |
Williams-Sonoma, Inc. | 570 | | 88,578 | |
| | | 474,277 | |
Technology Hardware, Storage
& Peripherals - 3.32% | | | |
Apple, Inc. | 2,643 | | 452,508 | |
| | | | |
Trading Companies & Distributors - 5.56% | |
AerCap Holdings NV (a)(b) | 1,915 | | 120,013 | |
Boise Cascade Co. | 650 | | 66,976 | |
GMS, Inc. (a) | 924 | | 59,108 | |
MSC Industrial Direct
Co., Inc. - Class A | 496 | | 48,683 | |
Rush Enterprises, Inc. -
Class A | 1,686 | | 68,839 | |
Textainer Group
Holdings Ltd. | 1,800 | | 67,050 | |
| | | | |
| Shares | | Fair Value | |
Trading Companies & Distributors - 5.56%
(continued) | |
United Rentals, Inc. | 452 | | $200,946
| |
WESCO International, Inc. | 867 | | 124,692 | |
| | | 756,307 | |
Wireless Telecommunication Services - 0.85% | |
T-Mobile US, Inc. (a) | 830 | | 116,242 | |
TOTAL COMMON STOCKS
(Cost $9,737,633) | | $13,528,934
| |
| | | | |
SHORT-TERM INVESTMENTS - 0.93% | |
Money Market Funds - 0.93% | |
Fidelity Institutional Money Market Funds - Government Portfolio - Class I, 5.230% (c) | 127,096 | | $127,096
| |
TOTAL SHORT-TERM INVESTMENTS (Cost $127,096) | | $127,096
| |
| | | | |
Total Investments
(Cost $9,864,729) - 100.33% | | $13,656,030
| |
Liabilities in Excess of
Other Assets - (0.33)% | | (44,717) | |
TOTAL NET ASSETS - 100.00% | | $13,611,313
| |
Percentages are stated as a percent of net assets.
ADRAmerican Depositary Receipt
(a)Non-income producing security.
(b)Foreign issued security.
(c)The rate quoted is the annualized seven-day effective yield as of September 30, 2023.
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial services LLC (“S&P”). GICS® is a service mark of MSCI, Inc. and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 43 |
Leuthold Grizzly Short Fund
Schedule of Investments
September 30, 2023
| | | |
| Shares | | Fair Value |
SHORT-TERM INVESTMENTS - 74.21% |
Money Market Funds - 74.21% |
Fidelity Institutional Money Market Funds - Government Portfolio - Class I, 5.230% (a)(b) | 81,878,202 | | $81,878,202
|
TOTAL SHORT-TERM INVESTMENTS
(Cost $81,878,202) | | $81,878,202
|
| Principal Amount | | |
UNITED STATES TREASURY
OBLIGATIONS - 18.09% |
United States
Treasury Bill
5.243%, 10/17/2023
(b)(c)(d) | $20,000,000
| | $19,954,134
|
| | | |
TOTAL UNITED STATES TREASURY OBLIGATIONS (Cost $19,954,134) | | $19,954,134
|
| | | |
Total Investments
(Cost $101,832,336) - 92.30% | | $101,832,336
|
Other Assets in Excess of Liabilities - (b) - 7.70% | | 8,497,933 |
TOTAL NET ASSETS - 100.00% | | $110,330,269
|
Percentages are stated as a percent of net assets.
(a)The rate quoted is the annualized seven-day effective yield as of September 30, 2023.
(b)All or a portion of the assets have been committed as collateral for open securities sold short.
(c)Rate represents the annualized effective yield to maturity from the purchase price.
(d)Zero coupon security.
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial services LLC (“S&P”). GICS® is a service mark of MSCI, Inc. and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
Leuthold Grizzly Short Fund
Schedule of Securities Sold Short - (a)
September 30, 2023
| | |
44 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | |
| Shares | | Fair Value |
COMMON STOCKS - 70.94% |
Aerospace & Defense - 4.49% |
AeroVironment, Inc. | 5,079 | | $566,461
|
Axon Enterprise, Inc. | 2,888 | | 574,683 |
HEICO Corp. | 2,993 | | 484,656 |
Kratos Defense & Security Solutions, Inc. | 45,602 | | 684,942 |
L3Harris Technologies, Inc. | 5,406 | | 941,293 |
Parsons Corp. | 9,859 | | 535,837 |
RTX Corp. | 12,627 | | 908,765 |
Spirit AeroSystems
Holdings, Inc. - Class A | 16,089 | | 259,676 |
| | | 4,956,313 |
Automobile Components - 0.49% |
Dorman Products, Inc. | 7,122 | | 539,563 |
| | | |
Automobiles - 1.18% | | | |
Tesla, Inc. | 5,198 | | 1,300,644 |
| | | |
Banks - 1.94% | | | |
Commerce Bancshares, Inc. | 11,230 | | 538,815 |
First Financial
Bankshares, Inc. | 20,822 | | 523,048 |
Independent Bank
Group, Inc. | 12,225 | | 483,499 |
Seacoast Banking
Corp. of Florida | 27,209 | | 597,510 |
| | | 2,142,872 |
Biotechnology - 0.90% | | | |
Moderna, Inc. | 9,567 | | 988,175 |
| | | |
| | | |
| Shares | | Fair Value |
Broadline Retail - 2.28% | | | |
Amazon.com, Inc. | 10,291 | | $1,308,192
|
Coupang, Inc. | 71,085 | | 1,208,445 |
| | | 2,516,637 |
Capital Markets - 5.75% | | | |
Blue Owl Capital, Inc. | 47,187 | | 611,544 |
Brookfield Corp. (b) | 42,990 | | 1,344,297 |
The Charles Schwab Corp. | 20,197 | | 1,108,815 |
Cohen & Steers, Inc. | 9,958 | | 624,267 |
LPL Financial
Holdings, Inc. | 4,609 | | 1,095,329 |
Nasdaq, Inc. | 21,344 | | 1,037,105 |
Tradeweb Markets, Inc. -
Class A | 6,465 | | 518,493 |
| | | 6,339,850 |
Chemicals - 3.16% | | | |
Avient Corp. | 13,659 | | 482,436 |
Corteva, Inc. | 18,226 | | 932,442 |
International Flavors & Fragrances, Inc. | 8,164 | | 556,540 |
Sensient Technologies Corp. | 8,863 | | 518,308 |
Stepan Co. | 5,876 | | 440,524 |
Tronox Holdings PLC | 41,556 | | 558,512 |
| | | 3,488,762 |
Commercial Services & Supplies - 2.77% |
Casella Waste Systems, Inc. - Class A | 6,856 | | 523,113 |
Rollins, Inc. | 25,014 | | 933,772 |
Stericycle, Inc. | 12,380 | | 553,510 |
Waste Connections, Inc. (b) | 7,799 | | 1,047,406 |
| | | 3,057,801 |
Communications Equipment - 0.89% |
Ciena Corp. | 12,950 | | 612,017 |
ViaSat, Inc. | 20,348 | | 375,624 |
| | | 987,641 |
Leuthold Grizzly Short Fund
Schedule of Securities Sold Short - (a) (continued)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 45 |
| | | |
| Shares | | Fair Value |
COMMON STOCKS - 70.94% (continued) |
Containers & Packaging - 2.93% |
Avery Dennison Corp. | 2,893 | | $528,464
|
Ball Corp. | 23,372 | | 1,163,458 |
Crown Holdings, Inc. | 6,944 | | 614,405 |
Sealed Air Corp. | 11,079 | | 364,056 |
Westrock Co. | 15,666 | | 560,843 |
| | | 3,231,226 |
Diversified Consumer Services - 0.94% |
ADT, Inc. | 90,828 | | 544,968 |
Service Corp. International | 8,659 | | 494,775 |
| | | 1,039,743 |
Electric Utilities - 0.99% | | | |
Duke Energy Corp. | 12,387 | | 1,093,277 |
| | | |
Electrical Equipment - 0.87% |
Ballard Power
Systems, Inc. (b) | 99,795 | | 366,248 |
Vicor Corp. | 10,135 | | 596,850 |
| | | 963,098 |
Entertainment - 2.85% | | | |
ROBLOX Corp. - Class A | 26,469 | | 766,542 |
Take-Two Interactive
Software, Inc. | 9,525 | | 1,337,215 |
The Walt Disney Co. | 12,809 | | 1,038,169 |
| | | 3,141,926 |
Financial Services - 0.45% | | | |
Jack Henry &
Associates, Inc. | 3,321 | | 501,936 |
| | | |
| | | |
| Shares | | Fair Value |
Food Products - 1.95% | | | |
Hormel Foods Corp. | 25,395 | | $965,772
|
J & J Snack Foods Corp. | 4,186 | | 685,039 |
TreeHouse Foods, Inc. | 11,485 | | 500,516 |
| | | 2,151,327 |
Gas Utilities - 0.50% | | | |
Southwest Gas
Holdings, Inc. | 9,061 | | 547,375 |
| | | |
Ground Transportation - 0.54% |
XPO, Inc. | 8,013 | | 598,251 |
| | | |
Health Care Equipment
& Supplies - 4.03% |
Axonics, Inc. | 9,144 | | 513,161 |
Baxter International, Inc. | 22,673 | | 855,679 |
Becton Dickinson and Co. | 4,009 | | 1,036,447 |
Masimo Corp. | 5,526 | | 484,520 |
PROCEPT
BioRobotics Corp. | 17,255 | | 566,136 |
ResMed, Inc. | 6,684 | | 988,363 |
| | | 4,444,306 |
Health Care Providers
& Services - 1.45% |
Guardant Health, Inc. | 14,676 | | 434,997 |
Privia Health Group, Inc. | 23,231 | | 534,313 |
R1 RCM, Inc. | 42,088 | | 634,266 |
| | | 1,603,576 |
Health Care Technology - 0.98% |
Veeva Systems, Inc. -
Class A | 5,318 | | 1,081,947 |
| | | |
Leuthold Grizzly Short Fund
Schedule of Securities Sold Short - (a) (continued)
September 30, 2023
| | |
46 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | |
| Shares | | Fair Value |
COMMON STOCKS - 70.94% (continued) |
Household Durables - 1.00% |
Newell Brands, Inc. | 66,471 | | $600,233
|
Sonos, Inc. | 38,934 | | 502,638 |
| | | 1,102,871 |
Independent Power Producers
& Energy Traders - 0.87% | | |
AES Corp. | 35,234 | | 535,557 |
Ormat Technologies, Inc. | 6,121 | | 427,980 |
| | | 963,537 |
Industrial Real Estate Investment
Trusts (REITs) - 0.41% |
Rexford Industrial
Realty, Inc. | 9,123 | | 450,220 |
| | | |
Insurance - 1.41% | | | |
Palomar Holdings, Inc. | 9,103 | | 461,977 |
The Progressive Corp. | 7,836 | | 1,091,555 |
| | | 1,553,532 |
IT Services - 2.49% | | | |
Cloudflare, Inc. - Class A | 17,079 | | 1,076,660 |
Globant SA (b) | 3,097 | | 612,742 |
Snowflake, Inc. - Class A | 6,960 | | 1,063,279 |
| | | 2,752,681 |
Leisure Products - 1.53% | | | |
Hasbro, Inc. | 9,713 | | 642,418 |
Mattel, Inc. | 30,509 | | 672,113 |
Topgolf Callaway
Brands Corp. | 26,682 | | 369,279 |
| | | 1,683,810 |
Life Sciences Tools & Services - 2.61% |
Bio-Techne Corp. | 6,793 | | 462,400 |
Danaher Corp. | 3,973 | | 985,701 |
| | | |
| Shares | | Fair Value |
Life Sciences Tools & Services - 2.61%
(continued) |
Illumina, Inc. | 2,904 | | $398,661
|
Waters Corp. | 3,780 | | 1,036,514 |
| | | 2,883,276 |
Machinery - 1.28% | | | |
Kornit Digital, Ltd. (b) | 19,107 | | 361,313 |
Xylem, Inc. | 11,537 | | 1,050,213 |
| | | 1,411,526 |
Metals & Mining - 1.65% | | | |
Alcoa Corp. | 12,298 | | 357,380 |
Compass Minerals
International, Inc. | 16,156 | | 451,560 |
MP Materials Corp. | 24,201 | | 462,239 |
Royal Gold, Inc. | 5,130 | | 545,473 |
| | | 1,816,652 |
Multi-Utilities - 1.69% | | | |
CMS Energy Corp. | 18,127 | | 962,725 |
Dominion Energy, Inc. | 20,207 | | 902,647 |
| | | 1,865,372 |
Oil, Gas & Consumable Fuels - 2.03% |
New Fortress Energy, Inc. | 18,669 | | 611,970 |
Occidental Petroleum Corp. | 16,944 | | 1,099,327 |
Ovintiv, Inc. | 11,167 | | 531,214 |
| | | 2,242,511 |
Passenger Airlines - 1.26% | | | |
Alaska Air Group, Inc. | 13,670 | | 506,884 |
Southwest Airlines Co. | 32,474 | | 879,071 |
| | | 1,385,955 |
Personal Care Products - 0.61% |
The Estee Lauder
Companies, Inc. - Class A | 4,661 | | 673,748 |
Leuthold Grizzly Short Fund
Schedule of Securities Sold Short - (a) (continued)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 47 |
| | | |
| Shares | | Fair Value |
COMMON STOCKS - 70.94% (continued) |
Professional Services - 4.51% |
Ceridian HCM Holding, Inc. | 7,836 | | $531,673
|
Dun & Bradstreet
Holdings, Inc. | 48,370 | | 483,216 |
Equifax, Inc. | 4,635 | | 849,039 |
Exponent, Inc. | 6,183 | | 529,265 |
Paycom Software, Inc. | 3,707 | | 961,114 |
Paylocity Holdings Corp. | 2,278 | | 413,913 |
TransUnion | 16,766 | | 1,203,631 |
| | | 4,971,851 |
Semiconductors & Semiconductor
Equipment - 0.54% |
Impinj, Inc. | 10,861 | | 597,681 |
| | | |
Software - 2.53% | | | |
Gitlab, Inc. - Class A | 13,212 | | 597,447 |
Unity Software, Inc. | 27,887 | | 875,373 |
Zscaler, Inc. | 8,472 | | 1,318,158 |
| | | 2,790,978 |
Specialty Retail - 0.54% | | | |
Warby Parker, Inc. - Class A | 45,105 | | 593,582 |
| | | |
Technology Hardware, Storage
& Peripherals - 0.61% |
Western Digital Corp. | 14,671 | | 669,438 |
| | | |
Textiles, Apparel & Luxury Goods - 0.53% |
Gildan Activewear, Inc. (b) | 20,768 | | 581,712 |
| | | |
Water Utilities - 0.51% | | | |
California Water
Service Group | 11,872 | | 561,664 |
| | | |
| Shares | | Fair Value |
TOTAL COMMON STOCKS
(Proceeds $84,873,998) | | $78,268,843
|
| | | |
INVESTMENT COMPANIES - 28.13% |
Exchange Traded Funds - 28.13% |
Consumer Staples Select Sector SPDR Fund | 43,923 | | $3,022,342
|
Energy Select Sector
SPDR Fund | 25,556 | | 2,310,007 |
Invesco Nasdaq 100 ETF | 31,173 | | 4,595,212 |
iShares Expanded Tech-Software Sector ETF | 6,079 | | 2,074,519 |
Materials Select Sector SPDR Fund | 29,079 | | 2,284,155 |
Real Estate Select Sector SPDR Fund | 124,347 | | 4,236,502 |
SPDR S&P 500 ETF Trust | 19,790 | | 8,459,829 |
SPDR S&P Regional Banking ETF | 25,311 | | 1,057,241 |
Utilities Select Sector
SPDR Fund | 50,815 | | 2,994,528 |
TOTAL INVESTMENT COMPANIES
(Proceeds $32,436,414) | | $31,034,335
|
| | | |
TOTAL SECURITIES SOLD SHORT |
(Proceeds $117,310,412) - 99.07% | | $109,303,178
|
Percentages are stated as a percent of net assets.
(a)Non-income producing security.
(b)Foreign issued security.
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial services LLC (“S&P”). GICS® is a service mark of MSCI, Inc. and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
| | |
48 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
Leuthold Core ETF
Schedule of Investments
September 30, 2023
| | | |
| Shares | | Fair Value |
INVESTMENT COMPANIES - 83.83% |
Exchange Traded Fund - 83.83% |
Communication Services Select Sector
SPDR Fund | 59,263 | | $3,885,875
|
Direxion Daily S&P 500 Bear 1x Shares | 239,933 | | 3,560,606 |
Fidelity MSCI Energy Index ETF | 63,901 | | 1,591,774 |
Financial Select Sector SPDR Fund | 42,263 | | 1,401,864 |
Health Care Select Sector SPDR Fund | 23,709 | | 3,052,297 |
Industrial Select Sector SPDR Fund | 26,329 | | 2,669,233 |
Invesco CurrencyShares Euro Currency Trust | 10,241 | | 1,000,546 |
Invesco CurrencyShares Japanese Yen Trust (a) | 11,766 | | 731,728 |
Invesco S&P 500 Equal Weight Consumer Discretionary ETF | 22,708 | | 955,553 |
iShares 1-3 Year Treasury Bond ETF | 87,062 | | 7,049,409 |
iShares 20+ Year Treasury Bond ETF | 5,120 | | 454,093 |
iShares 5-10 Year Investment Grade Corporate Bond ETF | 20,528 | | 998,687 |
iShares 7-10 Year Treasury Bond ETF | 9,026 | | 826,691 |
iShares MSCI Global Metals & Mining Producers ETF | 11,432 | | 454,536 |
| | | |
| Shares | | Fair Value |
Exchange Traded Fund - 83.83% (continued) |
iShares U.S. Healthcare Providers ETF | 8,776 | | $2,159,774 |
iShares U.S. Home Construction ETF | 35,089 | | 2,754,136 |
iShares U.S. Oil Equipment & Services ETF | 44,881 | | 1,078,940 |
iShares US
Transportation ETF | 2,340 | | 547,022 |
SPDR Bloomberg 1-3 Month T-Bill ETF | 10,598 | | 973,108 |
SPDR Bloomberg International Corporate Bond ETF | 34,455 | | 934,764 |
SPDR Bloomberg International Treasury Bond ETF | 90,905 | | 1,930,822 |
SPDR Bloomberg Short-Term High Yield Bond ETF | 17,922 | | 438,372 |
SPDR S&P Homebuilders ETF | 10,035 | | 768,380 |
SPDR S&P Metals & Mining ETF | 14,754 | | 774,585 |
SPDR S&P Retail ETF | 28,421 | | 1,729,702 |
SPDR S&P Semiconductor ETF | 5,018 | | 983,578 |
SPDR S&P Software & Services ETF | 5,812 | | 737,434 |
Technology Select Sector SPDR Fund | 63,918 | | 10,478,077 |
Leuthold Core ETF
Schedule of Investments (continued)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 49 |
| | | |
| Shares | | Fair Value |
INVESTMENT COMPANIES - 83.83% (continued) |
Exchange Traded Fund - 83.83% (continued) |
VanEck J. P. Morgan EM Local Currency
Bond ETF | 12,792 | | $305,345
|
Vanguard Short-Term Inflation-Protected Securities ETF | 13,753 | | 650,242 |
TOTAL INVESTMENT COMPANIES (Cost $52,256,343) | | $55,877,173
|
| | | |
SHORT-TERM INVESTMENTS - 16.16% |
Money Market Fund - 16.16% |
Fidelity Institutional Money Market Funds - Government Portfolio - Class I, 5.230% (b) | 10,772,384 | | $10,772,384
|
TOTAL MONEY MARKET FUNDS (Cost $10,772,384) | | $10,772,384
|
| | | |
Total Investments
(Cost $63,028,727) - 99.99% | | $66,649,557
|
Other Assets in Excess of
Liabilities - 0.01% | | 8,957 |
TOTAL NET ASSETS - 100.00% | | $66,658,514
|
Percentages are stated as a percent of net assets.
(a)Non-income producing security.
(b)The rate quoted is the annualized seven-day effective yield as of September 30, 2023.
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial services LLC (“S&P”). GICS® is a service mark of MSCI, Inc. and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
Leuthold Funds
Statements of Assets and Liabilities
September 30, 2023
| | |
50 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | |
| Leuthold
Core Investment Fund | | Leuthold Global
Fund | |
ASSETS: | | | | |
Investments, at cost | $372,042,922
| | $21,550,122
| |
Investments, at fair value | 478,052,724 | | 23,277,333 | |
Cash | — | | 1,379 | |
Receivable for Fund shares sold | 56,444 | | 42 | |
Receivable for investments sold | — | | 152,100 | |
Collateral at broker for securities sold short | 92,827,837 | | 4,448,689 | |
Tri-party collateral held at custodian | 300,000 | | 17,000 | |
Interest receivable | 644,551 | | 34,446 | |
Dividends receivable | 232,509 | | 63,308 | |
Other assets | 313,101 | | 26,061 | |
Total Assets | 572,427,166 | | 28,020,358 | |
| | | | |
LIABILITIES: | | | | |
Securities sold short, at fair value (proceeds $84,347,324, and $3,827,278, respectively) | 79,444,647 | | 3,649,300 | |
Payable for Fund shares redeemed | 251,104 | | 6,300 | |
Payable to Adviser | 369,377 | | 18,252 | |
Payable to Directors | 30,468 | | 3,003 | |
Payable for Audit Fees | 58,000 | | 21,000 | |
Dividends payable on securities sold short | 37,873 | | 823 | |
Distribution (Rule 12b-1) fees payable | — | | 807 | |
Shareholder servicing fees payable | 41,074 | | — | |
Accrued expenses and other liabilities | 155,502 | | 20,568 | |
Total Liabilities | 80,388,045 | | 3,720,053 | |
NET ASSETS | $492,039,121
| | $24,300,305
| |
| | | | |
Leuthold Funds
Statements of Assets and Liabilities (continued)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 51 |
| | | | |
| Leuthold
Core Investment Fund | | Leuthold Global
Fund | |
NET ASSETS CONSIST OF: | | | | |
Capital stock | $357,981,592
| | $22,247,908
| |
Total distributable earnings | 134,057,529 | | 2,052,397 | |
Total Net Assets | $492,039,121
| | $24,300,305
| |
| | | | |
Retail Class Shares | | | | |
Net assets | $239,837,892
| | $3,836,718
| |
Shares outstanding (1,000,000,000 shares of $0.0001 par value authorized) | 11,692,846 | | 431,670 | |
Net Asset Value, Redemption Price, and Offering Price Per Share | $20.51
| * | $8.89
| * |
Institutional Class Shares | | | | |
Net assets | 252,201,229 | | 20,463,587 | |
Shares outstanding (1,000,000,000 shares of $0.0001 par value authorized) | 12,235,542 | | 2,264,784 | |
Net Asset Value, Redemption Price, and Offering Price Per Share | $20.61
| * | $9.04
| * |
*Redemption price may differ from NAV if redemption fee is applied.
Leuthold Funds
Statements of Assets and Liabilities (continued)
September 30, 2023
| | |
52 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | | | |
| Leuthold
Select Industries Fund | | Leuthold Grizzly
Short
Fund | | Leuthold
Core
Etf | |
ASSETS: | | | | | | |
Investments, at cost | $9,864,729
| | $101,832,336
| | $63,028,727
| |
| | | | | | |
Investments, at fair value | 13,656,030 | | 101,832,336 | | 66,649,557 | |
Receivable for Fund shares sold | 3,250 | | 144,067 | | — | |
Collateral at broker for securities sold short | — | | 117,382,966 | | — | |
Tri-party collateral held at custodian | — | | 650,000 | | — | |
Interest receivable | 734 | | 396,214 | | 47,267 | |
Dividends receivable | 8,646 | | — | | 19,111 | |
Other assets | 10,355 | | 440,796 | | — | |
Total Assets | 13,679,015 | | 220,846,379 | | 66,715,935 | |
| | | | | | |
LIABILITIES: | | | | | | |
Securities sold short, at fair value
(proceeds $0, $117,310,412, and $0, respectively) | — | | 109,303,178 | | — | |
Payable for Fund shares redeemed | 28,129 | | 943,363 | | — | |
Payable to Adviser | 7,231 | | 117,131 | | 23,473 | |
Payable to Custodian | 2,393 | | 1,546 | | 828 | |
Payable to Directors | 831 | | 6,748 | | 4,087 | |
Payable for Audit Fees | 19,500 | | 21,000 | | 14,000 | |
Dividends payable on securities sold short | — | | 55,368 | | — | |
Shareholder servicing fees payable | 1,951 | | 5,380 | | — | |
Accrued expenses and other liabilities | 7,667 | | 62,396 | | 15,033 | |
Total Liabilities | 67,702 | | 110,516,110 | | 57,421 | |
NET ASSETS | $13,611,313
| | $110,330,269
| | $66,658,514
| |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Leuthold Funds
Statements of Assets and Liabilities (continued)
September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 53 |
| | | | | | |
| Leuthold
Select Industries Fund | | Leuthold Grizzly
Short
Fund | | Leuthold
Core
Etf | |
NET ASSETS CONSIST OF: | | | | | | |
Capital stock | $9,485,443
| | $474,123,694
| | $63,470,798
| |
Total distributable earnings/(accumulated losses) | 4,125,870 | | (363,793,425 | ) | 3,187,716 | |
Total Net Assets | $13,611,313
| | $110,330,269
| | $66,658,514
| |
| | | | | | |
Retail Class Shares | | | | | | |
Net assets | $13,611,313
| | $110,330,269
| | $66,658,514
| |
Shares outstanding
(1,000,000,000 shares of $0.0001 par value authorized) | 423,349 | | 14,920,313 | | 2,200,000 | |
Net Asset Value, Redemption Price, and Offering Price Per Share | $32.15
| * | $7.39
| | $30.30
| |
*Redemption price may differ from NAV if redemption fee is applied.
Leuthold Funds
Statements of Operations
For the Year Ended September 30, 2023
| | |
54 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | |
| Leuthold
Core Investment Fund | | Leuthold
Global
Fund | |
INVESTMENT INCOME: | | | | |
Dividend income
(net of foreign taxes withheld of $96,175 and $49,339, respectively) | $10,731,178
| | $787,469
| |
Interest income | 4,248,466 | | 238,134 | |
Total investment income | 14,979,644 | | 1,025,603 | |
| | | | |
EXPENSES: | | | | |
Investment advisory fees (Note 3) | 4,621,118 | | 229,408 | |
Administration fees | 268,869 | | 28,931 | |
Transfer agent fees (Note 5) | 299,051 | | 39,519 | |
Legal fees | 55,610 | | 9,135 | |
Audit fees | 69,546 | | 20,783 | |
Fund accounting fees | 98,857 | | 14,088 | |
Custody fees | 49,718 | | 19,718 | |
Shareholder servicing fees - Retail Class (Note 5) | 240,658 | | — | |
Registration fees | 47,947 | | 35,447 | |
Report to shareholders | 97,482 | | 4,139 | |
Directors’ fees | 139,150 | | 8,352 | |
Distribution (Rule 12b-1) fees - Retail Class (Note 4) | — | | 10,800 | |
Other | 61,299 | | 13,992 | |
Total expenses before dividends and interest on securities sold short
and reimbursement from Adviser | 6,049,305 | | 434,312 | |
Dividends on securities sold short | 822,168 | | 62,786 | |
Total expenses | 6,871,473 | | 497,098 | |
NET INVESTMENT INCOME | 8,108,171 | | 528,505 | |
| | | | |
Leuthold Funds
Statements of Operations (continued)
For the Year Ended September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 55 |
| | | | |
| Leuthold
Core Investment Fund | | Leuthold
Global
Fund | |
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS,
INVESTMENT COMPANIES, SECURITIES SOLD SHORT
AND FOREIGN CURRENCY AND
FOREIGN CURRENCY TRANSLATION: | | | | |
Net realized gain (loss) on: | | | | |
Investments | $30,291,127
| | $251,450
| |
Investment companies | 349,296 | | 19,431 | |
Securities sold short | (3,136,870 | ) | (139,768 | ) |
Foreign currency and foreign currency transaction | (536,190 | ) | (7,096 | ) |
Net unrealized appreciation (depreciation) during the period on: | | | | |
Investments | 32,919,381 | | 2,051,533 | |
Investment companies | 1,119,563 | | 54,963 | |
Securities sold short | (17,338,233 | ) | (832,234 | ) |
Foreign currency and foreign currency translation | 1,217,122 | | 308,489 | |
Net realized and unrealized gain on investments, investment companies, securities sold short, and foreign currency and foreign currency translation | 44,885,196 | | 1,706,768 | |
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $52,993,367
| | $2,235,273
| |
Leuthold Funds
Statements of Operations (continued)
For the Year Ended September 30, 2023
| | |
56 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | | | |
| Leuthold
Select Industries Fund | | Leuthold Grizzly
Short
Fund | | Leuthold
Core
ETF | |
INVESTMENT INCOME: | | | | | | |
Dividend income
(net of foreign taxes withheld of $4,395, $0 and $0, respectively) | $243,372
| | $4,749,662
| | $1,462,481
| |
Interest income | — | | 6,409,679 | | — | |
Total investment income | 243,372 | | 11,159,341 | | 1,462,481 | |
| | | | | | |
EXPENSES: | | | | | | |
Investment advisory fees (Note 3) | 132,706 | | 1,812,105 | | 310,209 | |
Administration fees | 19,938 | | 88,339 | | 41,139 | |
Transfer agent fees (Note 5) | 13,118 | | 149,899 | | 25,475 | |
Legal fees | 1,440 | | 17,529 | | 5,138 | |
Audit fees | 11,148 | | 22,642 | | 13,057 | |
Fund accounting fees | 5,519 | | 27,691 | | 10,994 | |
Custody fees | 16,958 | | 11,792 | | 4,936 | |
Shareholder servicing fees - Retail Class (Note 5) | 13,849 | | 61,502 | | — | |
Registration fees | 23,592 | | 73,929 | | — | |
Report to shareholders | 3,765 | | 42,177 | | 7,110 | |
Directors’ fees | 3,560 | | 39,250 | | 17,500 | |
Other | 2,679 | | 18,235 | | 16,700 | |
Total expenses before dividends and interest on securities sold short and reimbursement from Adviser | 248,272 | | 2,365,090 | | 452,258 | |
Dividends on securities sold short | — | | 1,559,492 | | — | |
Reimbursement from Adviser (Note 3) | (49,213 | ) | — | | (48,986 | ) |
Total expenses | 199,059 | | 3,924,582 | | 403,272 | |
NET INVESTMENT INCOME | 44,313 | | 7,234,759 | | 1,059,209 | |
| | | | | | |
Leuthold Funds
Statements of Operations (continued)
For the Year Ended September 30, 2023
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 57 |
| | | | | | |
| Leuthold
Select Industries Fund | | Leuthold Grizzly
Short
Fund | | Leuthold
Core
ETF | |
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS,
INVESTMENT COMPANIES, SECURITIES SOLD SHORT,
FOREIGN CURRENCY AND
FOREIGN CURRENCY TRANSLATION | | | | | | |
Net realized gain (loss) on: | | | | | | |
Investments | $889,691
| | $—
| | $—
| |
Investment companies | — | | — | | (614,019 | ) |
Securities sold short | — | | (17,466,941 | ) | — | |
Foreign currency and foreign currency transaction | 2 | | — | | — | |
Net unrealized appreciation (depreciation) during the period on: | | | | | | |
Investments | 1,494,865 | | — | | — | |
Investment companies | — | | — | | 5,141,202 | |
Securities sold short | — | | (25,412,544 | ) | — | |
Foreign currency and foreign currency translation | 29 | | — | | — | |
Net realized and unrealized gain (loss) on investments, investment companies, securities sold short, foreign currency and foreign currency translation | 2,384,587 | | (42,879,485 | ) | 4,527,183 | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS | $2,428,900
| | $(35,644,726
| ) | $5,586,392
| |
Leuthold Core Investment Fund
Statements of Changes in Net Assets
| | |
58 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | |
| Year Ended
September 30, 2023 | | Year Ended
September 30, 2022 | |
OPERATIONS: | | | | |
Net investment income | $8,108,171
| | $2,136,301
| |
Net realized gain on investments, investment companies, securities sold short, and foreign currency and foreign currency transaction | 26,967,363 | | 39,002,557 | |
Net unrealized appreciation (depreciation) on investments, investment companies, securities sold short, and foreign currency and foreign currency translation | 17,917,833 | | (85,832,026 | ) |
Net increase (decrease) in net assets from operations | 52,993,367 | | (44,693,168 | ) |
| | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Distributions - Retail Class | (19,033,267 | ) | (14,084,217 | ) |
Distributions - Institutional Class | (20,902,265 | ) | (15,293,237 | ) |
Total distributions | (39,935,532 | ) | (29,377,454 | ) |
| | | | |
CAPITAL SHARE TRANSACTIONS: | | | | |
Proceeds from shares sold - Retail Class | 27,076,389 | | 38,988,776 | |
Proceeds from shares sold - Institutional Class | 32,116,861 | | 38,641,336 | |
Proceeds from shares issued to holders in reinvestment of dividends - Retail Class | 18,425,425 | | 13,618,622 | |
Proceeds from shares issued to holders in reinvestment of dividends - Institutional Class | 18,317,068 | | 13,981,488 | |
Cost of shares redeemed - Retail Class* | (59,528,456 | ) | (55,984,139 | ) |
Cost of shares redeemed - Institutional Class** | (63,944,117 | ) | (61,157,188 | ) |
Net decrease in net assets from capital share transactions | (27,536,830 | ) | (11,911,105 | ) |
| | | | |
TOTAL DECREASE IN NET ASSETS: | (14,478,995 | ) | (85,981,727 | ) |
NET ASSETS | | | | |
Beginning of year | 506,518,116 | | 592,499,843 | |
End of year | $492,039,121
| | $506,518,116
| |
| | | | |
CHANGES IN SHARES OUTSTANDING: | | | | |
Shares sold - Retail Class | 1,317,314 | | 1,778,266 | |
Shares sold - Institutional Class | 1,565,857 | | 1,758,663 | |
Shares issued to holders in reinvestment of dividends - Retail Class | 917,900 | | 592,865 | |
Shares issued to holders in reinvestment of dividends - Institutional Class | 907,787 | | 606,572 | |
Shares redeemed - Retail Class | (2,911,374 | ) | (2,527,323 | ) |
Shares redeemed - Institutional Class | (3,100,906 | ) | (2,795,053 | ) |
Net decrease in shares outstanding | (1,303,422 | ) | (586,010 | ) |
| | | | |
*Net of redemption fees of (Retail Class): | $354
| | $506
| |
**Net of redemption fees of (Institutional Class): | $387
| | $545
| |
Leuthold Global Fund
Statements of Changes in Net Assets
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 59 |
| | | | |
| Year Ended
September 30, 2023 | | Year Ended
September 30, 2022 | |
OPERATIONS: | | | | |
Net investment income | $528,505
| | $344,867
| |
Net realized income on investments, investment companies, securities sold short, and foreign currency and foreign currency transaction | 124,017 | | 903,100 | |
Net unrealized appreciation (depreciation) on investments, investment companies, securities sold short, and foreign currency and foreign currency translation | 1,582,751 | | (3,964,847 | ) |
Net increase (decrease) in net assets from operations | 2,235,273 | | (2,716,880 | ) |
| | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Distributions - Retail Class | (226,835 | ) | (133,621 | ) |
Distributions - Institutional Class | (985,871 | ) | (556,770 | ) |
Total distributions | (1,212,706 | ) | (690,391 | ) |
| | | | |
CAPITAL SHARE TRANSACTIONS: | | | | |
Proceeds from shares sold - Retail Class | 212,453 | | 323,240 | |
Proceeds from shares sold - Institutional Class | 542,561 | | 1,188,686 | |
Proceeds from shares issued to holders in reinvestment of dividends - Retail Class | 217,167 | | 129,235 | |
Proceeds from shares issued to holders in reinvestment of dividends - Institutional Class | 960,567 | | 543,325 | |
Cost of shares redeemed - Retail Class | (1,379,480 | ) | (879,551 | ) |
Cost of shares redeemed - Institutional Class | (2,025,628 | ) | (1,776,789 | ) |
Net decrease in net assets from capital share transactions | (1,472,360 | ) | (471,854 | ) |
| | | | |
TOTAL DECREASE IN NET ASSETS: | (449,793 | ) | (3,879,125 | ) |
NET ASSETS | | | | |
Beginning of year | 24,750,098 | | 28,629,223 | |
End of year | $24,300,305
| | $24,750,098
| |
| | | | |
CHANGES IN SHARES OUTSTANDING: | | | | |
Shares sold - Retail Class | 23,867 | | 32,875 | |
Shares sold - Institutional Class | 59,976 | | 123,653 | |
Shares issued to holders in reinvestment of dividends - Retail Class | 24,595 | | 13,330 | |
Shares issued to holders in reinvestment of dividends - Institutional Class | 107,009 | | 55,426 | |
Shares redeemed - Retail Class | (155,749 | ) | (92,421 | ) |
Shares redeemed - Institutional Class | (224,423 | ) | (182,786 | ) |
Net decrease in shares outstanding | (164,725 | ) | (49,923 | ) |
Leuthold Select Industries Fund
Statements of Changes in Net Assets
| | |
60 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | |
| Year Ended
September 30, 2023 | | Year Ended
September 30, 2022 | |
OPERATIONS: | | | | |
Net investment income | $44,313
| | $43,409
| |
Net realized gain (loss) on investments and foreign currency transactions | 889,693 | | (21,681 | ) |
Net unrealized appreciation (depreciation) on investments and foreign currency translation | 1,494,894 | | (2,416,602 | ) |
Net increase (decrease) in net assets from operations | 2,428,900 | | (2,394,874 | ) |
| | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Distributions - Retail Class | (192,980 | ) | (1,014,130 | ) |
Total distributions | (192,980 | ) | (1,014,130 | ) |
| | | | |
CAPITAL SHARE TRANSACTIONS: | | | | |
Proceeds from shares sold | 6,619,271 | | 9,700,273 | |
Proceeds from shares issued to holders in reinvestment of dividends | 191,147 | | 998,785 | |
Cost of shares redeemed | (7,399,847 | ) | (10,065,836 | ) |
Net increase (decrease) in net assets from capital share transactions | (589,429 | ) | 633,222 | |
| | | | |
TOTAL INCREASE (DECREASE) IN NET ASSETS: | 1,646,491 | | (2,775,782 | ) |
NET ASSETS | | | | |
Beginning of year | 11,964,822 | | 14,740,604 | |
End of year | $13,611,313
| | $11,964,822
| |
| | | | |
CHANGES IN SHARES OUTSTANDING: | | | | |
Shares sold | 207,970 | | 305,990 | |
Shares issued to holders in reinvestment of dividends | 6,372 | | 28,910 | |
Shares redeemed | (239,270 | ) | (322,088 | ) |
Net increase (decrease) in shares outstanding | (24,928 | ) | 12,812 | |
Leuthold Grizzly Short Fund
Statements of Changes in Net Assets
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 61 |
| | | | |
| Year Ended September 30, 2023 | | Year Ended September 30, 2022 | |
OPERATIONS: | | | | |
Net investment income (loss) | $7,234,759
| | $(1,218,185
| ) |
Net realized loss on securities sold short | (17,466,941 | ) | (6,334,884 | ) |
Net unrealized appreciation (depreciation) on securities sold short | (25,412,544 | ) | 31,739,792 | |
Net increase (decrease) in net assets from operations | (35,644,726 | ) | 24,186,723 | |
| | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Distributions - Retail Class | (5,100,117 | ) | — | |
Total distributions | (5,100,117 | ) | — | |
| | | | |
CAPITAL SHARE TRANSACTIONS: | | | | |
Proceeds from shares sold | 189,789,080 | | 396,485,400 | |
Proceeds from shares issued to holders in reinvestment of dividends | 4,292,209 | | — | |
Cost of shares redeemed | (240,389,854 | ) | (283,985,342 | ) |
Net increase (decrease) in net assets from capital share transactions | (46,308,565 | ) | 112,500,058 | |
| | | | |
TOTAL INCREASE (DECREASE) IN NET ASSETS: | (87,053,408 | ) | 136,686,781 | |
NET ASSETS | | | | |
Beginning of year | 197,383,677 | | 60,696,896 | |
End of year | $110,330,269
| | $197,383,677
| |
| | | | |
CHANGES IN SHARES OUTSTANDING: | | | | |
Shares sold | 22,993,951 | | 48,154,768 | |
Shares issued to holders in reinvestment of dividends | 587,566 | | — | |
Shares redeemed | (30,009,894 | ) | (35,300,078 | ) |
Net increase (decrease) in shares outstanding | (6,428,377 | ) | 12,854,690 | |
Leuthold Core ETF
Statements of Changes in Net Assets
| | |
62 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | |
| Year Ended
September 30, 2023 | | Year Ended
September 30, 2022 | |
OPERATIONS: | | | | |
Net investment income | $1,059,209
| | $196,551
| |
Net realized gain (loss) on investments | (614,019 | ) | 443,124 | |
Net unrealized appreciation (depreciation) on investments | 5,141,202 | | (3,489,488 | ) |
Net increase (decrease) in net assets from operations | 5,586,392 | | (2,849,813 | ) |
| | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Distributions | (438,080 | ) | (37,005 | ) |
Total distributions | (438,080 | ) | (37,005 | ) |
| | | | |
CAPITAL SHARE TRANSACTIONS: | | | | |
Proceeds from shares sold | 28,676,585 | | 26,639,227 | |
Cost of shares redeemed | (2,907,470 | ) | (3,041,358 | ) |
Net increase in net assets from capital share transactions | 25,769,115 | | 23,597,869 | |
| | | | |
TOTAL INCREASE IN NET ASSETS: | 30,917,427 | | 20,711,051 | |
NET ASSETS | | | | |
Beginning of year | 35,741,087 | | 15,030,036 | |
End of year | $66,658,514
| | $35,741,087
| |
| | | | |
CHANGES IN SHARES OUTSTANDING: | | | | |
Shares sold | 1,000,000 | | 900,000 | |
Shares redeemed | (100,000 | ) | (100,000 | ) |
Net increase in shares outstanding | 900,000 | | 800,000 | |
| |
Leuthold Funds - 2023 Annual Report | 63 |
Leuthold Funds
Notes to the Financial Statements
1.ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Leuthold Funds, Inc. (the “Company”) was incorporated on August 30, 1995, as a Maryland Corporation and is registered with the Securities and Exchange Commission as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, the Funds are considered investment companies under, and follow the accounting and reporting guidance in, Accounting Standards Codification Topic 946 – Investment Companies. The Leuthold Group, LLC, doing business as Leuthold Weeden Capital Management, is the investment adviser to the Funds (the “Adviser”). The Company consists of five series (each series a “Fund” and collectively the “Funds”):
| | | | | | |
Fund | | Investment Objective | | Inception –
Retail
Share Class | | Inception –
Institutional
Share Class |
Leuthold Core Investment Fund | | Seeks total return consistent with prudent investment risk over the long-term | | 11/20/1995 | | 1/31/2006 |
Leuthold Global Fund | | Seeks total return consistent with prudent investment risk over the long-term | | 7/1/2008 | | 4/30/2008 |
Leuthold Select Industries Fund | | Capital appreciation | | 6/19/2000 | | n/a |
Leuthold Grizzly Short Fund | | Capital appreciation | | 6/19/2000 | | n/a |
Leuthold Core ETF | | Capital appreciation and income | | 1/6/2020 | | n/a |
All classes of shares in a Fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees and expenses, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’s servicing or distribution arrangements.
The following is a summary of significant accounting policies consistently followed by the Funds.
a)Investment Valuation – The Funds value their investments at fair value. Securities listed on a national securities exchange (other than The NASDAQ OMX Group, Inc., referred to as “NASDAQ”) are valued at the last sale price on the day the valuation is made. Securities that are traded on NASDAQ under one of its three listing tiers, NASDAQ Global Market, NASDAQ Global Select Market, and NASDAQ Capital Market, are valued at the NASDAQ Official Closing Price. Price information on listed stocks is taken from the exchange where the security is primarily traded. Securities, including securities sold short, which are listed on an exchange, but which are not traded on the valuation date are generally valued at the mean between the bid and the asked prices. Unlisted securities for which market quotations are readily available are valued at the latest quoted bid price or, if unavailable, at prices provided by an independent pricing service. Securities sold short which are not listed on an exchange but for which market quotations are readily available are generally valued at the average of the current bid and asked prices. Debt securities are valued at bid prices provided by an independent pricing service that may use a matrix pricing method or other analytical pricing model. Shares of open-end investment companies (other than shares of an exchange-traded fund traded on domestic securities exchanges or on NASDAQ) are valued at one of the following prices as determined by the Adviser: (a) the net asset value
| |
64 | Leuthold Funds - 2023 Annual Report |
announced by such open-end investment company following the close of business on the business day a Fund’s net asset value is to be calculated; (b) the net asset value announced by such open-end investment company following the close of business on the business day immediately preceding the day a Fund’s net asset value is to be calculated; or (c) a value determined by the Adviser by adding to, or subtracting from, the net asset value announced by such open-end investment company following the close of business on the business day immediately preceding the day a Fund’s net asset value is to be calculated, an amount equal to the Adviser’s estimate of the effect of changes in the market prices for the types of securities held by such investment company. Other assets, including securities for which no quotations are readily available, are valued at fair value as determined in good faith by the valuation designee pursuant to the Funds’ “Pricing and Valuation Guidelines.”
Under Rule 2a-5 of the 1940 Act, a fair value will be determined for securities for which quotations are not readily available by the Valuation Designee (as defined in Rule 2a-5) in accordance with the Pricing and Valuation Policy and Fair Value Procedures, as applicable, of the Adviser, subject to oversight by the Board. When a security is “fair valued,” consideration is given to the facts and circumstances relevant to the particular situation, including a review of various factors set forth in the Adviser’s Pricing and Valuation Policy and Fair Value Procedures, as applicable. Fair value pricing is an inherently subjective process, and no single standard exists for determining fair value. Different funds could reasonably arrive at different values for the same security. The use of fair value pricing by a fund may cause the NAV of its shares to differ significantly from the NAV that would be calculated without regard to such considerations.
The Funds may invest in foreign securities. Foreign securities may be priced at the closing price reported on the foreign exchange on which they are principally traded. Trading in foreign securities may be completed at times that vary from the closing of the New York Stock Exchange (“NYSE”). The Adviser, as the “valuation designee” under review of the Board, uses their independent pricing provider’s proprietary fair value pricing model to assist in determining current valuation for foreign securities traded in markets that close prior to the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current exchange rates. Occasionally, events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If these events materially affect the value of portfolio securities, then these securities may be valued as determined in good faith by the Directors. Some of the factors which may be considered by the valuation designee and the Funds’ Fair Value Pricing Committee in determining fair value are fundamental analytical data relating to the investment, the nature and duration of any restrictions on disposition, trading in similar securities of the same issuer or comparable companies, information from broker-dealers, and an evaluation of the forces that influence the market in which the securities are purchased and sold. The use of fair value pricing by a Fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated without regard to such considerations.
b)Fair Valuation Measurements – The Funds have adopted fair valuation accounting standards, which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion of changes in valuation techniques and related inputs during the period. These inputs are summarized in the following three levels:
Level 1 - Quoted prices in active markets for identical securities.
| |
Leuthold Funds - 2023 Annual Report | 65 |
Level 2 -
Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 -
Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Funds’ investments and securities sold short as of September 30, 2023:
| | | | | | | | | | | | | | | | |
Leuthold Core Investment Fund |
Investments at Fair Value | | Level 1 | | Level 2 | | Level 3 | | Total |
Common Stocks | | | | | | | | | | | | | | | | |
Chemicals | | | $—
| | | | $—
| | | | $0
| (1) | | | $0
| |
Communications Equipment | | | 3,716,214 | | | | — | | | | — | | | | 3,716,214 | |
Construction Materials | | | 12,779,260 | | | | — | | | | — | | | | 12,779,260 | |
Distributors | | | 2,908,366 | | | | — | | | | — | | | | 2,908,366 | |
Electronic Equipment, Instruments & Components | | | 15,246,684 | | | | — | | | | — | | | | 15,246,684 | |
Energy Equipment & Services | | | 15,657,333 | | | | — | | | | — | | | | 15,657,333 | |
Entertainment | | | 4,130,944 | | | | — | | | | — | | | | 4,130,944 | |
Financial Services | | | 8,415,877 | | | | — | | | | — | | | | 8,415,877 | |
Ground Transportation | | | 8,705,722 | | | | — | | | | — | | | | 8,705,722 | |
Health Care Providers & Services | | | 37,681,307 | | | | — | | | | — | | | | 37,681,307 | |
Household Durables | | | 26,127,396 | | | | — | | | | — | | | | 26,127,396 | |
Insurance | | | 9,239,209 | | | | — | | | | — | | | | 9,239,209 | |
Interactive Media & Services | | | 14,352,680 | | | | — | | | | — | | | | 14,352,680 | |
IT Services | | | 13,563,633 | | | | — | | | | — | | | | 13,563,633 | |
Machinery | | | 12,765,081 | | | | — | | | | — | | | | 12,765,081 | |
Media | | | 3,432,795 | | | | — | | | | — | | | | 3,432,795 | |
Metals & Mining | | | 7,383,309 | | | | — | | | | — | | | | 7,383,309 | |
Oil, Gas & Consumable Fuels | | | 10,183,710 | | | | — | | | | — | | | | 10,183,710 | |
Pharmaceuticals | | | 5,731,947 | | | | — | | | | — | | | | 5,731,947 | |
Semiconductors &
Semiconductor Equipment | | | 27,657,897 | | | | — | | | | — | | | | 27,657,897 | |
Software | | | 34,379,326 | | | | — | | | | — | | | | 34,379,326 | |
Specialty Retail | | | 11,061,094 | | | | — | | | | — | | | | 11,061,094 | |
Technology Hardware, Storage & Peripherals | | | 10,510,753 | | | | — | | | | — | | | | 10,510,753 | |
Trading Companies & Distributors | | | 17,487,846 | | | | — | | | | — | | | | 17,487,846 | |
Wireless Telecommunication Services | | | 2,693,582 | | | | — | | | | — | | | | 2,693,582 | |
Total Common Stocks | | | $315,811,965
| | | | $—
| | | | $—
| | | | $315,811,965
| |
| |
66 | Leuthold Funds - 2023 Annual Report |
| | | | | | | | | | | | | | | | |
Leuthold Core Investment Fund |
Investments at Fair Value | | Level 1 | | Level 2 | | Level 3 | | Total |
Exchange Traded Funds | | | $39,945,813
| | | | $—
| | | | $—
| | | | $39,945,813
| |
Corporate Bonds | | | — | | | | 4,699,601 | | | | — | | | | 4,699,601 | |
Foreign Government Bonds | | | — | | | | 8,709,514 | | | | — | | | | 8,709,514 | |
United States Treasury Obligations | | | — | | | | 32,646,231 | | | | — | | | | 32,646,231 | |
Money Market Funds | | | 76,239,600 | | | | — | | | | — | | | | 76,239,600 | |
Total Investments in Securities | | | $431,997,378
| | | | $46,055,346
| | | | $0
| (1) | | | $478,052,724
| |
| | | | | | | | | | | | | | | | |
Securities Sold Short at Fair Value | | | Level 1 | | | | Level 2 | | | | Level 3 | | | | Total | |
Common Stocks | | | $56,890,700
| | | | $—
| | | | $—
| | | | $56,890,700
| |
Exchange Traded Funds | | | 22,553,947 | | | | — | | | | — | | | | 22,553,947 | |
Total Securities Sold Short | | | $79,444,647
| | | | $—
| | | | $—
| | | | $79,444,647
| |
(1)Management has determined transfers into/out of level 3 and the value of level 3 investments at year end to be immaterial to the Fund.
| |
Leuthold Funds - 2023 Annual Report | 67 |
| | | | | | | | | | | | | | | | |
Leuthold Global Fund |
Investments at Fair Value | | Level 1 | | Level 2 | | Level 3 | | Total |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles | | | $116,384
| | | | $614,219
| | | | $—
| | | | $730,603
| |
Banks | | | 433,517 | | | | 327,598 | | | | — | | | | 761,115 | |
Capital Markets | | | 424,042 | | | | — | | | | — | | | | 424,042 | |
Construction Materials | | | 287,827 | | | | 501,758 | | | | — | | | | 789,585 | |
Consumer Staples Distribution | | | 270,413 | | | | 477,921 | | | | — | | | | 748,334 | |
Distributors | | | 92,633 | | | | — | | | | — | | | | 92,633 | |
Electronic Equipment, Instruments & Components | | | — | | | | 51,384 | | | | — | | | | 51,384 | |
Food Products | | | 544,726 | | | | 167,359 | | | | — | | | | 712,085 | |
Health Care Providers & Services | | | 940,882 | | | | — | | | | — | | | | 940,882 | |
Household Durables | | | 990,967 | | | | 208,336 | | | | — | | | | 1,199,303 | |
Insurance | | | 534,313 | | | | 902,731 | | | | — | | | | 1,437,044 | |
IT Services | | | 307,527 | | | | 320,227 | | | | — | | | | 627,754 | |
Machinery | | | — | | | | 152,866 | | | | — | | | | 152,866 | |
Metals & Mining | | | 450,105 | | | | 75,057 | | | | — | | | | 525,162 | |
Oil, Gas & Consumable Fuels | | | 1,786,607 | | | | 327,330 | | | | — | | | | 2,113,937 | |
Paper & Forest Products | | | — | | | | — | | | | 0 | (1) | | | — | |
Passenger Airlines | | | 558,950 | | | | 128,053 | | | | — | | | | 687,003 | |
Semiconductors & Semiconductor Equipment | | | 1,160,217 | | | | 609,734 | | | | — | | | | 1,769,951 | |
Software | | | 811,834 | | | | 211,006 | | | | — | | | | 1,022,840 | |
Trading Companies & Distributors | | | 192,431 | | | | 298,302 | | | | — | | | | 490,733 | |
Total Common Stocks | | | 9,903,375 | | | | 5,373,881 | | | | — | | | | 15,277,256 | |
Preferred Stocks | | | 143,891 | | | | — | | | | — | | | | 143,891 | |
Exchange Traded Funds | | | 1,780,312 | | | | — | | | | — | | | | 1,780,312 | |
Corporate Bonds | | | — | | | | 480,177 | | | | — | | | | 480,177 | |
Foreign Government Bonds | | | — | | | | 430,352 | | | | — | | | | 430,352 | |
United States Treasury Obligations | | | — | | | | 1,700,882 | | | | — | | | | 1,700,882 | |
Money Market Funds | | | 3,464,463 | | | | — | | | | — | | | | 3,464,463 | |
Total Investments in Securities | | | $15,292,041
| | | | $7,985,292
| | | | $—
| | | | $23,277,333
| |
| | | | | | | | | | | | | | | | |
Securities Sold Short at Fair Value | | | Level 1 | | | | Level 2 | | | | Level 3 | | | | Total | |
Common Stocks | | | $1,211,092
| | | | $—
| | | | $—
| | | | $1,211,092
| |
Exchange Traded Funds | | | 2,438,208 | | | | — | | | | — | | | | 2,438,208 | |
Total Securities Sold Short | | | $3,649,300
| | | | $—
| | | | $—
| | | | $3,649,300
| |
(1)Management has determined transfers into/out of level 3 and the value of level 3 investments at year end to be immaterial to the Fund.
| |
68 | Leuthold Funds - 2023 Annual Report |
| | | | | | | | | | | | | | | | |
Leuthold Select Industries Fund |
Investments at Fair Value | | Level 1 | | Level 2 | | Level 3 | | Total |
Common Stocks | | | $13,528,934
| | | | $—
| | | | $—
| | | | $13,528,934
| |
Money Market Funds | | | 127,096 | | | | — | | | | — | | | | 127,096 | |
Total Investments in Securities | | | $13,656,030
| | | | $—
| | | | $—
| | | | $13,656,030
| |
The Fund did not invest in any Level 3 securities during the period.
| | | | | | | | | | | | | | | | |
Leuthold Grizzly Short Fund |
Investments at Fair Value | | Level 1 | | Level 2 | | Level 3 | | Total |
Money Market Funds | | | $81,878,202
| | | | $—
| | | | $—
| | | | $81,878,202
| |
United States Treasury Obligations | | | — | | | | 19,954,134 | | | | — | | | | 19,954,134 | |
Total Investments in Securities | | | $81,878,202
| | | | $19,954,134
| | | | $—
| | | | $101,832,336
| |
| | | | | | | | | | | | | | | | |
Securities Sold Short at Fair Value | | Level 1 | | Level 2 | | Level 3 | | Total |
Common Stocks | | | $78,268,843
| | | | $—
| | | | $—
| | | | $78,268,843
| |
Exchange Traded Funds | | | 31,034,335 | | | | — | | | | — | | | | 31,034,335 | |
Total Securities Sold Short | | | $109,303,178
| | | | $—
| | | | $—
| | | | $109,303,178
| |
The Fund did not invest in any Level 3 securities during the period.
| | | | | | | | | | | | | | | | |
Leuthold Core ETF |
Investments at Fair Value | | Level 1 | | Level 2 | | Level 3 | | Total |
Exchange Traded Funds | | | $55,877,173
| | | | $—
| | | | $—
| | | | $55,877,173
| |
Money Market Funds | | | 10,772,384 | | | | — | | | | — | | | | 10,772,384 | |
Total Investments in Securities | | | $66,649,557
| | | | $—
| | | | $—
| | | | $66,649,557
| |
The Fund did not invest in any Level 3 securities during the period.
For further information regarding security characteristics, see the Schedules of Investments and Schedules of Securities Sold Short.
c) Federal Income Taxes – Provision for federal income taxes or excise taxes has not been made since the Funds have elected to be taxed as “regulated investment companies” and intend to distribute substantially all taxable income to shareholders and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. Distributions from net realized gains for book purposes may include short-term capital gains, which are included as ordinary income to shareholders for tax purposes. The Funds also designate as distributions of long-term gains, to the extent necessary to fully distribute such capital gains, earnings and profits distributed to shareholders on the redemption of shares.
| |
Leuthold Funds - 2023 Annual Report | 69 |
The tax character of distributions paid during the fiscal years ended September 30, 2023 and 2022 was as follows:
| | | | | | | | | | | | | | | | | | | | |
Year Ended September 30, 2023 |
| | Leuthold
Core
Investment
Fund | | Leuthold
Global
Fund | | Leuthold
Select
Industries
Fund | | Leuthold
Grizzly
Short
Fund | | Leuthold
Core
ETF |
Distributions paid from: | | | | | | | | | | | | | | | | | | | | |
Ordinary Income | | | $4,758,362
| | | | $283,368
| | | | $44,274
| | | | $5,100,117
| | | | $438,080
| |
Long Term Capital Gain* | | | 35,177,170 | | | | 929,338 | | | | 148,706 | | | | — | | | | — | |
Total Distributions Paid | | | $39,935,532
| | | | $1,212,706
| | | | $192,980
| | | | $5,100,117
| | | | $438,080
| |
| | | | | | | | | | | | | | | | | | | | |
Year Ended September 30, 2022 |
| | Leuthold
Core
Investment
Fund | | Leuthold
Global Fund | | Leuthold
Select
Industries
Fund | | Leuthold
Grizzly
Short
Fund | | Leuthold
Core
ETF |
Distributions paid from: | | | | | | | | | | | | | | | | | | | | |
Ordinary Income | | | $—
| | | | $313,965
| | | | $72,860
| | | | $—
| | | | $37,005
| |
Long Term Capital Gain* | | | 29,377,454 | | | | 376,426 | | | | 941,270 | | | | — | | | | — | |
Total Distributions Paid | | | $29,377,454
| | | | $690,391
| | | | $1,014,130
| | | | $—
| | | | $37,005
| |
*The funds designate these distributions as long-term capital gain dividends per IRC Sec. 852(b)(3)(C) in the 20-percent group (which may be taxed at a 20-percent rate, a 15-percent rate or 0-percent rate, depending on the shareholder’s taxable income).
At September 30, 2023, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Leuthold
Core
Investment
Fund | | Leuthold
Global
Fund | | Leuthold
Select
Industries
Fund | | Leuthold
Grizzly
Short
Fund | | Leuthold
Core
ETF |
Undistributed Ordinary Income | | | $1,268,761
| | | | $189,380
| | | | $—
| | | | $1,640,465
| | | | $745,919
| |
Undistributed long-term gains | | | 21,944,620 | | | | — | | | | 400,888 | | | | — | | | | — | |
Distributable earnings | | | 23,213,381 | | | | 189,380 | | | | 400,888 | | | | 1,640,465 | | | | 745,919 | |
Capital loss carryover and late-year losses | | | — | | | | (35,796 | ) | | | — | | | | (372,483,594 | ) | | | (733,430 | ) |
Other accumulated gains (losses) | | | — | | | | — | | | | — | | | | — | | | | — | |
Unrealized appreciation (depreciation) | | | 110,844,149 | | | | 1,898,813 | | | | 3,724,982 | | | | 7,049,704 | | | | 3,175,227 | |
Total accumulated earnings (deficit) | | | $134,057,530
| | | | $2,052,397
| | | | $4,125,870
| | | | $(363,793,425
| ) | | | $3,187,716
| |
Net investment income and realized gains and losses for federal income tax purposes may differ from that reported on the financial statements because of permanent book-to-tax differences. U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) requires that permanent differences between financial reporting and
| |
70 | Leuthold Funds - 2023 Annual Report |
tax reporting be reclassified between various components of net assets. These differences are primarily due to partnership adjustments, securities sold short, earnings and profits distributed to shareholders on the redemption of shares, net operating losses, realized gain on redemptions in kind, and expiration of capital losses.
Additionally, U.S. GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended September 30, 2023, the following table shows the reclassifications made:
| | | | | | | | |
| | Distributable
Earnings | | Paid In
Capital |
Leuthold Core Investment Fund | | | $(5,253,136)
| | | | $5,253,136
| |
Leuthold Global Fund | | | 71 | | | | (71) | |
Leuthold Select Industries Fund | | | (166,885) | | | | 166,885 | |
Leuthold Grizzly Short Fund | | | — | | | | — | |
Leuthold Core ETF | | | (331,190) | | | | 331,190 | |
Under current law, the Funds may carry forward net capital losses indefinitely to use to offset capital gains realized in future years. Capital losses realized will carry forward retaining their classification as long-term or short-term losses.
| | | | | | | | | | | | | | | | | | | | |
| | Leuthold
Core
Investment
Fund | | Leuthold
Global
Fund | | Leuthold
Select
Industries
Fund | | Leuthold
Grizzly
Short
Fund | | Leuthold
Core ETF |
Unlimited Short-Term | | | $—
| | | | $(35,796)
| | | | $—
| | | | $(372,483,594)
| | | | $(461,562)
| |
Unlimited Long-Term | | | — | | | | — | | | | — | | | | — | | | | (271,868) | |
The Funds did not have any late-year losses incurred during the fiscal year ended September 30, 2023 as arising on the first day of the fiscal year ending September 30, 2024. The Funds also did not have any post-October losses.
As of September 30, 2023, the Funds had no tax positions that did not meet the “more likely-than-not” threshold of being sustained by the applicable tax authority. Generally, tax authorities can examine all the tax returns filed for the last three years. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the year ended September 30, 2023, the Funds did not incur any interest or penalties.
d)Distributions to Shareholders – Dividends from net investment income, if any, are declared and paid quarterly for the Leuthold Core Investment Fund, Leuthold Global Fund, Leuthold Select Industries Fund, and Leuthold Grizzly Short Fund, and are declared and paid annually for the Leuthold Core ETF. Distributions of net realized capital gains, if any, are declared and paid at least annually.
| |
Leuthold Funds - 2023 Annual Report | 71 |
e)Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.
f)Securities Sold Short – For financial statement purposes, an amount equal to the required amount of collateral to be segregated for securities sold short is included in the Statements of Assets and Liabilities as an asset. The amount of the securities sold short, shown as a liability, is subsequently marked-to-market to reflect the current value of the securities sold short. Subsequent fluctuations in the market prices of securities sold short may require purchasing the securities at prices which could differ from the amount reflected in the Statements of Assets and Liabilities. The Funds are liable for any dividends or interest payable on securities sold short. The Funds will suffer a loss if they sell a security short and the value of the security rises rather than falls; additionally, the Funds may be subject to expenses such as costs of borrowing and margin account maintenance. Since there is no maximum attainable price for a stock, short selling could result in unlimited loss. As collateral for their securities sold short, the Funds are required under the 1940 Act to maintain segregated assets consisting of cash, cash equivalents, or liquid securities. These segregated assets are valued consistent with Note 1a. The amount of segregated assets is required to be adjusted daily to reflect changes in the fair value of the securities sold short. The Leuthold Core Investment Fund, Leuthold Global Fund, and Leuthold Grizzly Short Fund’s collateral at broker for securities sold short is with one major international security dealer.
With regard to the cash collateral that is posted with counterparties, the Funds have established a collateral account for each respective counterparty with its custodian (the “Account”) and have entered into a tri-party agreement with the custodian and the respective counterparty regarding the transfer of assets to and from the Account.
The Adviser reviews each Account on a daily basis to ensure that the Account does not maintain a material amount of cash collateral in excess of what is required by the applicable counterparty (the amount of collateral required by such counterparty is subject to change and generally not known until the next business day, which necessitates the maintenance of a minimum amount of excess cash collateral). In the event that the excess cash collateral in an Account is equal to or in excess of the greater of the following: $250,000 or 3% of the total assets of the applicable Fund calculated at each month end; then the applicable Fund, pursuant to the tri-party agreement, will instruct the custodian to sweep such excess cash collateral into the Fund’s interest bearing account with the custodian. The amount of collateral held related to this tri-party agreement is included in the Statements of Assets and Liabilities as an asset.
g)Other – Investment and shareholder transactions are recorded on the trade date. The Funds determine the gain or loss realized from the investment transactions by comparing the cost of the security lot sold with the net sales proceeds. The Funds utilize an identified lot approach to transactions. Dividend income is recognized on the ex-dividend date or as soon as information is available to the Funds, and interest income is recognized on an accrual basis. Discounts and premiums on bonds are amortized using the yield to maturity method over the life of the respective bond. For financial reporting purposes, the Funds isolate changes in the exchange rate of investment securities from the fluctuations arising from changes in the market prices of securities for realized gains and losses.
| |
72 | Leuthold Funds - 2023 Annual Report |
h)Foreign Taxes – To the extent certain Funds invest in foreign securities, they may be subject to foreign withholding taxes with respect to dividends or interest the Funds received from sources in foreign countries. Since certain Funds may invest in the securities of a foreign issuer, it can elect to “pass-through” foreign taxes paid by the Funds to its shareholders who, subject to certain limitations, can elect to credit such taxes against their own U.S. federal income tax liability or claim them as a credit. No assurance can be provided that the Funds can or will make such an election
i)Expenses – Expenses that directly relate to one of the Funds are charged directly to that Fund. Other operating expenses of the Funds, such as Directors fees and expenses, insurance expense, and legal fees are allocated between the Funds based on the relative net asset value of the individual Funds.
j)Counterparty Risk – Counterparty risk may arise as the result of the failure of a counterparty to a securities contract to comply with the terms of the contract. Potential counterparty risk is measured by the creditworthiness of the counterparty and additional risk may arise from unanticipated events affecting the value of the underlying security.
k)Managed Futures Strategy/Commodities Risk (Leuthold Core ETF only) – The Fund may invest in underlying investments that principally invest in the commodities markets through investment in managed futures programs. Such investments may subject an underlying investment to greater volatility than investments in traditional securities. Commodities are real assets such as oil, agriculture, livestock, industrial metals, and precious metals such as gold or silver. Prices of commodities and related contracts may fluctuate significantly over short periods for a variety of reasons, including weather and natural disasters; pandemics and other global health emergencies; governmental, agricultural, trade, fiscal, monetary and exchange control programs and policies; acts of terrorism, tariffs and U.S. and international economic, political, military and regulatory developments. The demand and supply of these commodities may also fluctuate widely based on such factors as interest rates, investors’ expectations with respect to the rate of inflation, currency exchange rates, the production and cost levels of the producers and/or forward selling by such producers, global or regional political, economic, or financial events, purchases and sales by central banks, and trading activities by hedge funds and other commodity funds. Commodity underlying investments may use derivatives, such as futures, options, and swaps, which expose them to further risks, including counterparty risk (i.e., the risk that the institution on the other side of the trade will default).
l)Shares May Trade at Prices Other Than NAV (Leuthold Core ETF only) – As with all exchange traded funds (“ETFs”), shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of shares will approximate the Fund’s net asset value (“NAV”), there may be times when the market price of shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply and demand of shares or during periods of market volatility. This risk is heightened in times of market volatility, periods of steep market declines, and periods when there is limited trading activity for shares in the secondary market, in which case such premiums or discounts may be significant.
| |
Leuthold Funds - 2023 Annual Report | 73 |
m)Authorized Participants, Market Makers and Liquidity Providers Concentration Risk (Leuthold Core ETF only) –The Fund has a limited number of financial institutions that may act as authorized participants (“APs”). In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace. To the extent either of the following events occur, shares may trade at a material discount to NAV and possibly face delisting: (i) APs exit the business or otherwise become unable to process creation and/or redemption orders and no other APs step forward to perform these services, or (ii) market makers and/or liquidity providers exit the business or significantly reduce their business activities and no other entities step forward to perform their functions.
n)Rule 18f-4 under the 1940 Act – On October 28, 2020, the SEC adopted new regulations governing the use of derivatives by registered investment companies as Rule 18f-4 under the 1940 Act (“Rule 18f-4”). Rule 18f-4 imposes limits on the amount of derivatives a fund can enter into, eliminates the asset segregation and cover framework arising from prior SEC guidance for covering derivatives and certain financial instruments currently used by funds to comply with Section 18 of the 1940 Act and treats derivatives as senior securities. Under Rule 18f-4 a fund’s derivatives exposure is limited through a value-at-risk test. Funds whose use of derivatives is more than a limited specified exposure amount are required to establish and maintain a comprehensive derivatives risk management program, subject to oversight by a fund’s board of trustees, and appoint a derivatives risk manager. The Leuthold Core Investment Fund, Leuthold Global Fund, and Leuthold Grizzly Short Fund have implemented a derivatives risk management program and comply with Rule 18f-4.
o) Recently Issued Accounting Pronouncements
•In June 2022, the FASB issued Accounting Standards Update 2022-03, which amends Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”). ASU 2022-03 clarifies guidance for fair value measurement of an equity security subject to a contractual sale restriction and establishes new disclosure requirements for such equity securities. ASU 2022-03 is effective for fiscal years beginning after December 15, 2023 and for interim periods within those fiscal years, with early adoption permitted. Management is currently evaluating the impact, if any, of these amendments on the financial statements.
•In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848 (“ASU 2022-06). ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.
p)Subsequent Events – In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. This evaluation did not result in any subsequent events that necessitated recognition or disclosure.
| |
74 | Leuthold Funds - 2023 Annual Report |
2.INVESTMENT TRANSACTIONS
Purchases and sales of investment securities, other than short-term investments, U.S. Government securities, and securities sold short, for the year ended September 30, 2023 are summarized below.
| | | | | | | | | | |
| | Leuthold
Core
Investment
Fund | | Leuthold
Global
Fund | | Leuthold
Select
Industries
Fund | | Leuthold Grizzly Short Fund | | Leuthold
Core ETF (a) |
Purchases | | $276,057,064 | | $13,503,820 | | $13,476,528 | | $— | | $27,954,824 |
Sales | | 330,004,334 | | 15,083,058 | | 14,119,371 | | — | | 26,384,018 |
Purchases and sales of U.S. Government securities for the year ended September 30, 2023 are summarized below.
| | | | | | | | | | |
| | Leuthold
Core
Investment
Fund | | Leuthold
Global
Fund | | Leuthold
Select
Industries
Fund | | Leuthold Grizzly Short Fund | | Leuthold
Core ETF (a) |
Purchases | | $28,072,598 | | $1,484,502 | | $— | | $19,681,800 | | $— |
Sales | | 7,044,728 | | 353,991 | | — | | — | | — |
(a)The Leuthold Core ETF’s purchases and sales exclude in-kind transactions. In-kind purchases and sales as of September 30, 2023 were $23,501,398 and $2,472,096, respectively. During the year ended September 30, 2023, the Fund realized $370,972 in net capital gains resulting from in-kind redemptions, in which shareholders exchanged Fund shares for securities held by the Fund rather than for cash. Because such gains are not taxable to the Fund, and are not distributed to shareholders, they have been reclassified from accumulated earnings to paid-in capital.
There were no purchases or sales of investment securities in the Leuthold Grizzly Short Fund because this Fund invests only in securities sold short.
At September 30, 2023, gross unrealized appreciation and depreciation of investments and securities sold short and cost of investments and cost of securities sold short for tax purposes were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Leuthold
Core
Investment
Fund | | Leuthold
Global
Fund | | Leuthold
Select
Industries
Fund | | Leuthold
Grizzly
Short
Fund | | Leuthold
Core
ETF |
Tax cost of investments | | | $287,761,646
| | | | $17,880,512
| | | | $9,931,049
| | | | $(14,520,545
| ) | | | $63,474,331
| |
Unrealized appreciation | | | 117,764,941 | | | | 3,858,458 | | | | 3,992,851 | | | | 10,362,513 | | | | 5,017,702 | |
Unrealized depreciation | | | (6,920,793 | ) | | | (1,959,645 | ) | | | (267,869 | ) | | | (3,312,809 | ) | | | (1,842,475 | ) |
Net unrealized appreciation | | | $110,844,148
| | | | $1,898,813
| | | | $3,724,982
| | | | $7,049,704
| | | | $3,175,227
| |
The differences between book and tax basis of unrealized appreciation (depreciation) are primarily attributable to the tax deferral of losses on wash sales and passive foreign investment company transactions.
| |
Leuthold Funds - 2023 Annual Report | 75 |
3.INVESTMENT ADVISORY AND OTHER AGREEMENTS
Each of the Funds has entered into an Investment Advisory Agreement (“advisory agreement”) with the Adviser. Pursuant to its advisory agreement with the Funds, the Adviser is entitled to receive a fee, calculated daily as applied to each Fund’s average daily net assets and payable monthly, at annual rates of:
| | | | | | | | |
Leuthold
Core
Investment
Fund | | Leuthold
Global
Fund | | Leuthold
Select
Industries
Fund | | Leuthold
Grizzly
Short
Fund | | Leuthold
Core
ETF |
0.90% | | 0.90% | | 1.00% | | 1.25% | | 0.50% |
The Adviser has agreed to waive its advisory fee and/or reimburse the Funds’ other expenses, to the extent necessary to ensure that the Funds’ total operating expenses (exclusive of interest, taxes, brokerage commissions, dividends, interest on securities sold short, acquired fund fees and expenses, and extraordinary items) do not exceed the following rates, based on each Fund’s average daily net assets:
| | | | | | | | |
Leuthold
Core
Investment
Fund | | Leuthold
Global Fund | | Leuthold
Select
Industries
Fund | | Leuthold
Grizzly
Short
Fund | | Leuthold
Core
ETF |
1.25% | | 1.85% | | 1.50% | | 2.50% | | 0.65% |
Any waiver or reimbursement is subject to later adjustments to allow the Adviser to recoup amounts previously waived or reimbursed to the extent actual fees and expenses for a fiscal period are less than each Fund’s expense limitation, provided, however, that the recoupment period for the Adviser is limited to three years from the time the expenses were waived or incurred and is limited to the lesser of (1) the expense cap in effect at the time of the waiver, and (2) the expense cap in effect at the time of recapture.
Amounts subject to future recoupment as of September 30, 2023 are as follows:
| | |
Leuthold Select Industries Fund |
Year of Expiration | | Recoverable Amount |
9/30/2024 | | $61,596 |
9/30/2025 | | 54,459 |
9/30/2026 | | 49,213 |
| | |
Leuthold Core ETF |
Year of Expiration | | Recoverable Amount |
9/30/2024 | | $109,766 |
9/30/2025 | | 75,400 |
9/30/2026 | | 48,986 |
| |
76 | Leuthold Funds - 2023 Annual Report |
U.S. Bancorp Fund Services, LLC (“Fund Services”), doing business as U.S. Bank Global Fund Services, serves as transfer agent, administrator, and accounting services agent for the Funds. U.S. Bank, N.A. serves as custodian for the Funds. A director and officers of the Company are also officers of the Adviser.
4.DISTRIBUTION PLAN
The Leuthold Global Fund – Retail Class has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, whereby Compass Distributors, LLC, served as distributor through September 14, 2023, and Quasar Distributors, LLC, which serves as distributor effective September 15, 2023. This plan allows the Fund to use up to 0.25% of its average daily net assets to pay sales, distribution, and other fees for the sale of its shares and for services provided to investors. The Fund may pay all or a portion of this fee to any securities dealer, financial institution, or any other person who renders personal service to the Fund’s shareholders, assists in the maintenance of the Fund’s shareholder accounts, or who renders assistance in distributing or promoting the sale of shares of the Fund pursuant to a written agreement approved by the Directors. To the extent such fee is not paid to such persons, the Fund may use the fee for its expenses of distribution of its shares, including, but not limited to, payment by the Fund of the cost of preparing, printing, and distributing Prospectuses and Statements of Additional Information to prospective investors and of implementing and operating the plan.
5.SUB-TRANSFER AGENT AND SHAREHOLDER SERVICING FEE PLANS
The Funds are permitted to pay sub-transfer agent fees for various platform agreement not to exceed 0.15% of the Funds’ average daily net assets. In addition, the Retail Class shares of the Leuthold Core Investment Fund, Leuthold Select Industries Fund, and Leuthold Grizzly Short Fund have adopted a Shareholder Servicing Fee Plan not to exceed 0.15% of these Funds’ Retail Class shares average daily net assets. These fees are used to finance certain activities related to servicing and maintaining shareholder accounts. Sub-transfer agent and shareholder servicing fees incurred by the Funds are disclosed in the Statements of Operations.
6.INDEMNIFICATIONS
The Funds enter into contracts that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
7.ILLIQUID SECURITIES
Each Fund may invest up to 15% of net assets in illiquid investments. An “illiquid investment” is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund will take into account relevant market, trading, and investment specific consideration when determining whether an investment is an illiquid investment. The illiquidity status of an investment is generally evaluated monthly. The 15% limitation may include securities whose disposition would be subject to legal restrictions (“restricted securities”). Restricted securities often have a market value lower than the market price of unrestricted securities of the same issuer and are not readily marketable without some time delay. This could result in a fund being unable to realize a favorable price upon disposition of restricted securities and in some cases might make disposition of such securities at the time desired by the fund impossible.
| |
Leuthold Funds - 2023 Annual Report | 77 |
8.LENDING PORTFOLIO SECURITIES
The Funds may lend portfolio securities constituting up to 30% of total assets to unaffiliated broker dealers, banks, or other recognized institutional borrowers of securities, provided that the borrower at all times maintains cash, U.S. government securities or equivalent collateral or provides an irrevocable letter of credit in favor of the Funds equal in value to at least 100% of the value of the securities loaned. During the time portfolio securities are on loan, the borrower pays the lending Fund an amount equivalent to any dividends or interest paid on such securities, and the Fund may receive an agreed-upon amount of interest income from the borrower who delivered equivalent collateral or provided a letter of credit. Loans are subject to termination at the option of the lending Fund or the borrower. The lending Fund may pay reasonable administrative and custodial fees in connection with a loan of portfolio securities and may pay a negotiated portion of the interest earned on the cash or equivalent collateral to the borrower or placing broker. The lending Fund does not have the right to vote securities on loan but could terminate the loan and regain the right to vote if that were considered important with respect to the investment.
The primary risk in securities lending is a default by the borrower during a sharp rise in price of the borrowed security resulting in a deficiency in the collateral posted by the borrower. The Funds will seek to minimize this risk by requiring that the value of the securities loaned will be computed each day and additional collateral be furnished each day if required.
As of and during the year ended September 30, 2023, the Funds did not engage in securities lending.
Leuthold Core Investment Fund - Retail - LCORX
Financial Highlights
| | |
78 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | | | | | | | | | | | | |
| | Year Ended
September 30,
2023 | | Year Ended
September 30,
2022 | | Year Ended
September 30,
2021 | | Year Ended
September 30,
2020 | | Year Ended
September 30,
2019 |
Per Share Data(1): | | | | | | | | | | | | | | | |
Net asset value, beginning of year | | $20.03
| | | $22.91
| | | $19.70
| | | $18.77
| | | $20.50
| |
Income (loss) from investment operations: | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | 0.31 | | | 0.07 | | | 0.07 | | | 0.00 | (3) | | 0.09 | |
Net realized and unrealized gains on investments and securities sold short | | 1.79 | | | (1.80 | ) | | 3.17 | | | 1.24 | | | 0.08 | |
Total from investment operations | | 2.10 | | | (1.73 | ) | | 3.24 | | | 1.24 | | | 0.17 | |
| | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | |
From net investment income | | (0.18 | ) | | — | | | — | | | (0.04 | ) | | (0.07 | ) |
From net realized gains | | (1.44 | ) | | (1.15 | ) | | (0.03 | ) | | (0.27 | ) | | (1.83 | ) |
Total distributions | | (1.62 | ) | | (1.15 | ) | | (0.03 | ) | | (0.31 | ) | | (1.90 | ) |
| | | | | | | | | | | | | | | |
Redemption fees(3) | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | |
Net asset value, end of year | | $20.51
| | | $20.03
| | | $22.91
| | | $19.70
| | | $18.77
| |
| | | | | | | | | | | | | | | |
Total Return | | 10.75 | % | | (8.19 | %) | | 16.44 | % | | 6.72 | % | | 1.21 | % |
| | | | | | | | | | | | | | | |
Supplemental data and ratios: | | | | | | | | | | | | | | | |
Net assets, end of year (thousands) | | $239,838
| | | $247,766
| | | $286,984
| | | $276,018
| | | $316,887
| |
Ratio of expenses to average net assets(4) | | 1.39 | % | | 1.34 | % | | 1.36 | % | | 1.34 | % | | 1.32 | % |
Ratio of net investment income (loss) to average net assets(5) | | 1.53 | % | | 0.33 | % | | (0.31 | %) | | 0.00 | % | | 0.48 | % |
Portfolio turnover rate(6) | | 68.00 | % | | 64.62 | % | | 41.42 | % | | 60.08 | % | | 66.68 | % |
(1)For a share outstanding throughout the period. Rounded to the nearest cent.
(2)Net investment income (loss) per share is calculated based on average shares outstanding.
(3)Amount represents less than $0.005 per share.
(4)The ratio of expenses to average net assets includes dividends and interest on securities sold short. The expense ratios excluding dividends and interest on securities sold short were 1.23% for the year ended September 30, 2023, 1.16% for the year ended September 30, 2022, 1.23% for the year ended September 30, 2021, 1.20% for the year ended September 30, 2020, and 1.20% for the year ended September 30, 2019.
(5)The net investment income ratios include dividends and interest on securities sold short.
(6)The portfolio turnover rate excludes purchases and sales of securities sold short.
Leuthold Core Investment Fund - Institutional - LCRIX
Financial Highlights
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 79 |
| | | | | | | | | | | | | | | |
| | Year Ended
September 30,
2023 | | Year Ended
September 30,
2022 | | Year Ended
September 30,
2021 | | Year Ended
September 30,
2020 | | Year Ended
September 30,
2019 |
Per Share Data(1): | | | | | | | | | | | | | | | |
Net asset value, beginning of year | | $20.12
| | | $22.98
| | | $19.74
| | | $18.81
| | | $20.53
| |
Income from investment operations: | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | 0.34 | | | 0.09 | | | (0.05 | ) | | 0.02 | | | 0.11 | |
Net realized and unrealized gains on investments and securities sold short | | 1.79 | | | (1.80 | ) | | 3.32 | | | 1.23 | | | 0.09 | |
Total from investment operations | | 2.13 | | | (1.71 | ) | | 3.27 | | | 1.25 | | | 0.20 | |
| | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | |
From net investment income | | (0.20 | ) | | — | | | — | | | (0.05 | ) | | (0.09 | ) |
From net realized gains | | (1.44 | ) | | (1.15 | ) | | (0.03 | ) | | (0.27 | ) | | (1.83 | ) |
Total distributions | | (1.64 | ) | | (1.15 | ) | | (0.03 | ) | | (0.32 | ) | | (1.92 | ) |
| | | | | | | | | | | | | | | |
Redemption fees(3) | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | |
Net asset value, end of year | | $20.61
| | | $20.12
| | | $22.98
| | | $19.74
| | | $18.81
| |
| | | | | | | | | | | | | | | |
Total Return | | 10.83 | % | | (8.08 | %) | | 16.56 | % | | 6.76 | % | | 1.33 | % |
| | | | | | | | | | | | | | | |
Supplemental data and ratios: | | | | | | | | | | | | | | | |
Net assets, end of year (thousands) | | $252,201
| | | $258,752
| | | $305,516
| | | $268,934
| | | $301,387
| |
Ratio of expenses to average net assets(4) | | 1.29 | % | | 1.26 | % | | 1.26 | % | | 1.25 | % | | 1.22 | % |
Ratio of net investment income (loss) to average net assets(5) | | 1.63 | % | | 0.42 | % | | (0.21 | %) | | 0.10 | % | | 0.58 | % |
Portfolio turnover rate(6) | | 68.00 | % | | 64.62 | % | | 41.42 | % | | 60.08 | % | | 66.68 | % |
(1)For a share outstanding throughout the period. Rounded to the nearest cent.
(2)Net investment income (loss) per share is calculated based on average shares outstanding.
(3)Amount represents less than $0.005 per share.
(4)The ratio of expenses to average net assets includes dividends and interest on securities sold short. The expense ratios excluding dividends and interest on securities sold short were 1.13% for the year ended September 30, 2023, 1.10% for the year ended September 30, 2022, 1.13% for the year ended September 30, 2021, 1.11% for the year ended September 30, 2020, and 1.10% for the year ended September 30, 2019.
(5)The net investment income ratios include dividends and interest on securities sold short.
(6)The portfolio turnover rate excludes purchases and sales of securities sold short.
Leuthold Global Fund - Retail - GLBLX
Financial Highlights
| | |
80 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | | | | | | | | | | | | |
| | Year Ended
September 30,
2023 | | Year Ended
September 30,
2022 | | Year Ended
September 30,
2021 | | Year Ended
September 30,
2020 | | Year Ended
September 30,
2019 |
Per Share Data(1): | | | | | | | | | | | | | | | |
Net asset value, beginning of year | | $8.55
| | | $9.72
| | | $8.24
| | | $8.09
| | | $9.11
| |
Income (loss) from investment operations: | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | 0.16 | | | 0.11 | | | (0.05 | ) | | 0.00 | (3) | | 0.02 | |
Net realized and unrealized gains (losses) on investments and securities sold short | | 0.60 | | | (1.05 | ) | | 1.53 | | | 0.21 | | | (0.39 | ) |
Total from investment operations | | 0.76 | | | (0.94 | ) | | 1.48 | | | 0.21 | | | (0.37 | ) |
| | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | |
From net investment income | | (0.09 | ) | | (0.04 | ) | | (0.00 | )(3) | | (0.06 | ) | | (0.01 | ) |
From net realized gains | | (0.33 | ) | | (0.19 | ) | | — | | | — | | | (0.64 | ) |
Total distributions | | (0.42 | ) | | (0.23 | ) | | — | | | (0.06 | ) | | (0.65 | ) |
| | | | | | | | | | | | | | | |
Redemption fees | | — | | | — | | | — | | | — | | | 0.00 | (3) |
Net asset value, end of year | | $8.89
| | | $8.55
| | | $9.72
| | | $8.24
| | | $8.09
| |
| | | | | | | | | | | | | | | |
Total Return | | 8.96 | % | | (9.92 | %) | | 18.01 | % | | 2.56 | % | | (3.97 | %) |
| | | | | | | | | | | | | | | |
Supplemental data and ratios: | | | | | | | | | | | | | | | |
Net assets, end of year (thousands) | | $3,837
| | | $4,608
| | | $5,691
| | | $4,690
| | | $7,485
| |
Ratio of expenses to average net assets(4) | | | | | | | | | | | | | | | |
Before expense reimbursement and recovery | | 2.16 | % | | 1.96 | % | | 1.97 | % | | 1.94 | % | | 1.88 | % |
After expense reimbursement and recovery | | 2.16 | % | | 1.96 | % | | 2.01 | % | | 1.91 | % | | 1.88 | % |
Ratio of net investment income (loss) to average net assets(5) | | | | | | | | | | | | | | | |
Before expense reimbursement and recovery | | 1.84 | % | | 1.14 | % | | (0.44 | %) | | (0.03 | %) | | 0.27 | % |
After expense reimbursement and recovery | | 1.84 | % | | 1.14 | % | | (0.48 | %) | | 0.01 | % | | 0.27 | % |
Portfolio turnover rate(6) | | 67.20 | % | | 54.13 | % | | 49.39 | % | | 55.31 | % | | 93.77 | % |
(1) For a share outstanding throughout the period. Rounded to the nearest cent.
(2)Net investment income (loss) per share is calculated based on average shares outstanding.
(3)Amount represents less than $0.005 per share.
(4)The ratio of expenses to average net assets includes dividends and interest on securities sold short. The expense ratios excluding dividends and interest on securities sold short before and after expense reimbursement and recorvery were 1.91% and 1.91% for the year ended September 30, 2023, 1.65% and 1.65% for the year ended September 30, 2022, 1.73% and 1.78% for the year ended September 30, 2021, 1.74% and 1.69% for the year ended September 30, 2020, and 1.62% and 1.62% for the year ended September 30, 2019, respectively.
(5)The net investment income ratios include dividends and interest on securities sold short.
(6)The portfolio turnover rate excludes purchases and sales of securities sold short.
Leuthold Global Fund - Institutional - GLBIX
Financial Highlights
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 81 |
| | | | | | | | | | | | | | | |
| | Year Ended
September 30,
2023 | | Year Ended
September 30,
2022 | | Year Ended
September 30,
2021 | | Year Ended
September 30,
2020 | | Year Ended
September 30,
2019 |
Per Share Data(1): | | | | | | | | | | | | | | | |
Net asset value, beginning of year | | $8.67
| | | $9.86
| | | $8.38
| | | $8.21
| | | $9.23
| |
Income (loss) from investment operations: | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | 0.19 | | | 0.12 | | | (0.04 | ) | | 0.02 | | | 0.04 | |
Net realized and unrealized gains (losses) on investments and securities sold short | | 0.61 | | | (1.07 | ) | | 1.54 | | | 0.21 | | | (0.39 | ) |
Total from investment operations | | 0.80 | | | (0.95 | ) | | 1.50 | | | 0.23 | | | (0.35 | ) |
| | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | |
From net investment income | | (0.10 | ) | | (0.05 | ) | | (0.02 | ) | | (0.06 | ) | | (0.03 | ) |
From net realized gains | | (0.33 | ) | | (0.19 | ) | | — | | | — | | | (0.64 | ) |
Total distributions | | (0.43 | ) | | (0.24 | ) | | (0.02 | ) | | (0.06 | ) | | (0.67 | ) |
| | | | | | | | | | | | | | | |
Redemption fees | | — | | | — | | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) |
Net asset value, end of year | | $9.04
| | | $8.67
| | | $9.86
| | | $8.38
| | | $8.21
| |
| | | | | | | | | | | | | | | |
Total Return | | 9.26 | % | | (9.90 | %) | | 17.96 | % | | 2.79 | % | | (3.70 | %) |
| | | | | | | | | | | | | | | |
Supplemental data and ratios: | | | | | | | | | | | | | | | |
Net assets, end of year (thousands) | | $20,464
| | | $20,143
| | | $22,939
| | | $21,097
| | | $45,677
| |
Ratio of expenses to average net assets(4) | | | | | | | | | | | | | | | |
Before expense reimbursement and recovery | | 1.91 | % | | 1.87 | % | | 1.90 | % | | 1.73 | % | | 1.63 | % |
After expense reimbursement and recovery | | 1.91 | % | | 1.87 | % | | 1.95 | % | | 1.69 | % | | 1.63 | % |
Ratio of net investment income (loss) to average net assets(5) | | | | | | | | | | | | | | | |
Before expense reimbursement and recovery | | 2.12 | % | | 1.28 | % | | (0.40 | %) | | 0.17 | % | | 0.52 | % |
After expense reimbursement and recovery | | 2.12 | % | | 1.28 | % | | (0.45 | %) | | 0.21 | % | | 0.52 | % |
Portfolio turnover rate(6) | | 67.20 | % | | 54.13 | % | | 49.39 | % | | 55.31 | % | | 93.77 | % |
(1)For a share outstanding throughout the period. Rounded to the nearest cent.
(2)Net investment income (loss) per share is calculated based on average shares outstanding.
(3)Amount represents less than $0.005 per share.
(4)The ratio of expenses to average net assets includes dividends and interest on securities sold short. The expense ratios excluding dividends and interest on securities sold short before and after expense reimbursement and recovery were 1.66% and 1.66% for the year ended September 30, 2023, 1.57% and 1.57% for the year ended September 30, 2022, 1.66% and 1.71% for the year ended September 30, 2021, 1.53% and 1.49% for the year ended September 30, 2020, and 1.37% and 1.37% for the year ended September 30, 2019, respectively.
(5)The net investment income ratios include dividends and interest on securities sold short.
(6)The portfolio turnover rate excludes purchases and sales of securities sold short.
Leuthold Select Industries Fund - Retail - LSLTX
Financial Highlights
| | |
82 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | | | | | | | | | | | | |
| | Year Ended
September 30,
2023 | | Year Ended
September 30,
2022 | | Year Ended
September 30,
2021 | | Year Ended
September 30,
2020 | | Year Ended
September 30,
2019 |
Per Share Data(1): | | | | | | | | | | | | | | | |
Net asset value, beginning of year | | $26.69
| | | $33.85
| | | $27.06
| | | $25.02
| | | $27.31
| |
Income (loss) from investment operations: | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | 0.10 | | | 0.09 | | | (0.10 | ) | | (0.04 | ) | | (0.03 | ) |
Net realized and unrealized gains on investments | | 5.80 | | | (5.09 | ) | | 8.85 | | | 2.81 | | | (0.16 | ) |
Total from investment operations | | 5.90 | | | (5.00 | ) | | 8.75 | | | 2.77 | | | (0.19 | ) |
| | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | |
From net investment income | | (0.44 | ) | | (0.08 | ) | | — | | | — | | | — | |
From net realized gains | | — | | | (2.08 | ) | | (1.96 | ) | | (0.73 | ) | | (2.10 | ) |
Total distributions | | (0.44 | ) | | (2.16 | ) | | (1.96 | ) | | (0.73 | ) | | (2.10 | ) |
Net asset value, end of year | | $32.15
| | | $26.69
| | | $33.85
| | | $27.06
| | | $25.02
| |
| | | | | | | | | | | | | | | |
Total Return | | 22.23 | % | | (16.21 | %) | | 34.14 | % | | 11.28 | % | | (0.19 | %) |
| | | | | | | | | | | | | | | |
Supplemental data and ratios: | | | | | | | | | | | | | | | |
Net assets, end of year (thousands) | | $13,611
| | | $11,965
| | | $14,741
| | | $8,677
| | | $11,784
| |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | |
Before expense reimbursement and recovery | | 1.87 | % | | 1.86 | % | | 2.03 | % | | 2.75 | % | | 1.77 | % |
After expense reimbursement and recovery | | 1.50 | % | | 1.50 | % | | 1.50 | % | | 1.50 | % | | 1.50 | % |
Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | |
Before expense reimbursement and recovery | | (0.04 | %) | | (0.07 | %) | | (0.84 | %) | | (1.40 | %) | | (0.39 | %) |
After expense reimbursement and recovery | | 0.33 | % | | 0.29 | % | | (0.31 | %) | | (0.16 | %) | | (0.12 | %) |
Portfolio Turnover | | 103.61 | % | | 105.72 | % | | 62.93 | % | | 73.99 | % | | 72.87 | % |
(1)For a share outstanding throughout the period. Rounded to the nearest cent.
(2)Net investment income (loss) per share is calculated based on average shares outstanding.
Leuthold Grizzly Short Fund - Retail - GRZZX
Financial Highlights
| | |
See Notes to the Financial Statements. | Leuthold Funds - 2023 Annual Report | 83 |
| | | | | | | | | | | | | | | |
| | Year Ended
September 30,
2023 | | Year Ended
September 30,
2022 | | Year Ended
September 30,
2021 | | Year Ended
September 30,
2020 | | Year Ended
September 30,
2019 |
Per Share Data(1): | | | | | | | | | | | | | | | |
Net asset value, beginning of year | | $9.25
| | | $7.15
| | | $10.82
| | | $16.15
| | | $17.65
| |
Income (loss) from investment operations: | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | 0.39 | | | (0.10 | ) | | (0.23 | ) | | (0.31 | ) | | 0.19 | |
Net realized and unrealized losses on investments and securities sold short | | (1.95 | ) | | 2.20 | | | (3.44 | ) | | (5.01 | ) | | (1.54 | ) |
Total from investment operations | | (1.56 | ) | | 2.10 | | | (3.67 | ) | | (5.32 | ) | | (1.35 | ) |
| | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | |
From net investment income | | (0.30 | ) | | — | | | — | | | (0.01 | ) | | (0.15 | ) |
From net realized gains | | — | | | — | | | — | | | — | | | — | |
Total distributions | | (0.30 | ) | | — | | | — | | | (0.01 | ) | | (0.15 | ) |
Net asset value, end of year | | $7.39
| | | $9.25
| | | $7.15
| | | $10.82
| | | $16.15
| |
| | | | | | | | | | | | | | | |
Total Return | | (16.77 | %) | | 29.37 | % | | (33.92 | %) | | (32.96 | %) | | (7.62 | %) |
| | | | | | | | | | | | | | | |
Supplemental data and ratios: | | | | | | | | | | | | | | | |
Net assets, end of year (thousands) | | $110,330
| | | $197,384
| | | $60,697
| | | $123,140
| | | $92,238
| |
Ratio of expenses to average net assets(3) | | 2.71 | % | | 2.68 | % | | 2.93 | % | | 2.84 | % | | 2.61 | % |
Ratio of net investment income (loss) to average net assets(4) | | 4.99 | % | | (1.22 | %) | | (2.93 | %) | | (2.23 | %) | | 1.08 | % |
Portfolio turnover rate(5) | | 0.00 | % | | 0.00 | % | | 0.00 | % | | 0.00 | % | | 0.00 | % |
(1)For a share outstanding throughout the period. Rounded to the nearest cent.
(2)Net investment income (loss) per share is calculated based on average shares outstanding.
(3)The ratio of expenses to average net assets includes dividends and interest on securites sold short. The expense ratios excluding dividends and interest on securities sold short were 1.63% for the year ended September 30, 2023, 1.61% for the year ended September 30, 2022, 1.68% for the year ended September 30, 2021, 1.24% for the year ended September 30, 2020, and 1.60% for the year ended September 30, 2019.
(4)The net investment income ratios include dividends and interest on securities sold short.
(5)The portfolio turnover rate excludes purchases and sales of securities sold short.
Leuthold Core ETF - Retail - LCR
Financial Highlights
| | |
84 | Leuthold Funds - 2023 Annual Report | See Notes to the Financial Statements. |
| | | | | | | | | | | | |
| | Year Ended
September 30,
2023 | | Year Ended
September 30,
2022 | | Year Ended
September 30,
2021 | | Period
Ended
September 30,
2020(1) |
| | | | | | | | | | | | |
Per Share Data(2): | | | | | | | | | | | | |
Net asset value, beginning of year | | $27.49
| | | $30.06
| | | $26.63
| | | $25.00
| |
Income (loss) from investment operations: | | | | | | | | | | | | |
Net investment income(3) | | 0.51 | | | 0.26 | | | 0.06 | | | 0.08 | |
Net realized and unrealized gains (losses) on investments and securities sold short | | 2.52 | | | (2.76 | ) | | 3.55 | | | 1.55 | |
Total from investment operations | | 3.03 | | | (2.50 | ) | | 3.61 | | | 1.63 | |
| | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | |
From net investment income | | (0.22 | ) | | (0.07 | ) | | (0.18 | ) | | — | |
From net realized gains | | — | | | — | | | — | | | — | |
Total distributions | | (0.22 | ) | | (0.07 | ) | | (0.18 | ) | | — | |
Net asset value, end of year | | $30.30
| | | $27.49
| | | $30.06
| | | $26.63
| |
| | | | | | | | | | | | |
Total Return | | 11.03 | % | | (8.34 | %) | | 13.59 | % | | 6.52 | % |
| | | | | | | | | | | | |
Supplemental data and ratios: | | | | | | | | | | | | |
Net assets, end of year (thousands) | | $66,659
| | | $35,741
| | | $15,030
| | | $11,317
| |
Ratio of expenses to average net assets: | | | | | | | | | | | | |
Before expense reimbursement and recovery | | 0.73 | % | | 0.98 | % | | 1.43 | % | | 3.31 | %(4) |
After expense reimbursement and recovery | | 0.65 | % | | 0.65 | % | | 0.65 | % | | 0.65 | %(4) |
Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | |
Before expense reimbursement and recovery | | 1.63 | % | | 0.55 | % | | (0.59 | %) | | (2.23 | %)(4) |
After expense reimbursement and recovery | | 1.71 | % | | 0.88 | % | | 0.19 | % | | 0.43 | %(4) |
Portfolio Turnover | | 50.36 | % | | 31.03 | % | | 70.83 | % | | 47.53 | % |
(1)Fund commenced operations on January 6, 2020. Information presented is for the period January 6, 2020 through September 30, 2020.
(2)For a share outstanding throughout the period. Rounded to the nearest cent.
(3)Net investment income (loss) per share is calculated based on average shares outstanding.
(4)Annualized.
| |
Leuthold Funds - 2023 Annual Report | 85 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors of
Leuthold Funds, Inc.
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments and investments sold short (as applicable), of Leuthold Funds, Inc., comprising Leuthold Core Investment Fund, Leuthold Global Fund, Leuthold Select Industries Fund, Leuthold Grizzly Short Fund (formerly Grizzly Short Fund), and Leuthold Core ETF (the “Funds”) as of September 30, 2023, the related statements of operations for the year then ended, and the statements of changes in net assets and the financial highlights for each of the two years in the period then ended, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of September 30, 2023, the results of their operations for the year then ended, and the changes in net assets and the financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
The Funds’ financial highlights for the years or periods ended September 30, 2021, and prior, were audited by other auditors whose report dated November 23, 2021, expressed an unqualified opinion on those financial highlights.
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2023, by correspondence with the custodian and broker. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Funds’ auditor since 2022.
COHEN & COMPANY, LTD.
Cleveland, Ohio
November 28, 2023
| |
86 | Leuthold Funds - 2023 Annual Report |
ADDITIONAL INFORMATION (Unaudited)
SHAREHOLDER NOTIFICATION OF FEDERAL TAX STATUS (Unaudited)
The percentage of dividend income distributed for the year ended September 30, 2023, which is designated as qualified dividend income under the Tax Cuts and Jobs Act of 2017, is as follows: Leuthold Core Investment Fund 96.30%, Leuthold Global Fund 100.00%, Leuthold Select Industries Fund 100.00%, Leuthold Grizzly Short Fund 0.00%, and Leuthold Core ETF 51.01%.
The percentage of dividend income distributed for the year ended September 30, 2023, designated as qualified dividends received deduction available to corporate shareholders, is as follows: Leuthold Core Investment Fund 78.91%, Leuthold Global Fund 34.27%, Leuthold Select Industries Fund 100.00%, Leuthold Grizzly Short Fund 0.00%, and Leuthold Core ETF 31.26%.
The Leuthold Core Investment Fund, Leuthold Global Fund, Leuthold Select Industries Fund, Leuthold Grizzly Short Fund, and Leuthold Core ETF designated as short-term capital gain distributions 0.00%, 0.00%, 0.00%, 0.00%, and 0.00%, respectively, of their ordinary distributions paid as qualified interest related dividends under the Internal Revenue Code Section 871(k)(1)(C) for the year ended September 30, 2023. The Leuthold Core Investment Fund, Leuthold Global Fund, Leuthold Select Industries Fund, Leuthold Grizzly Short Fund, and Leuthold Core ETF designated as interest related dividends 34.16%, 22.39%, 0.00%, 47.06%, and 22.23%, respectively, of their ordinary distributions paid as qualified interest related dividends under the Internal Revenue Code Section 871(k)(1)(C) for the year ended September 30, 2023.
| |
Leuthold Funds - 2023 Annual Report | 87 |
Expense Examples – September 30, 2023 (Unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including redemption fees and exchange fees, and brokerage charges for the Leuthold Core ETF; and (2) ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare 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 the entire period (April 1, 2023 - September 30, 2023).
Actual Expenses
The first line of the following tables provides information about actual account values and actual expenses. Although the Funds charge no sales load (the Leuthold Core Investment Fund and Leuthold Global Fund charge a 2% redemption fee for redemptions made within five business days after a purchase), you will be assessed fees for outgoing wire transfers, returned checks, or stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, the Funds’ transfer agent. If you request a redemption be made by wire transfer, currently a $15.00 fee is charged by the Funds’ transfer agent. To the extent that the Funds invest in shares of other investment companies as part of its investment strategy, you will indirectly bear your proportionate share of any fees and expenses charged by the underlying funds in which a Fund invests in addition to the expenses of the Fund. Actual expenses of the underlying funds are expected to vary by fund. These expenses are not included in the following examples. The examples include, but are not limited to, management fees, shareholder servicing fees, fund accounting, custody, and transfer agent fees. However, the following examples do not include portfolio trading commissions and related expenses, and extraordinary expenses as determined under generally accepted accounting principles. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the following tables provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees or exchange fees. Therefore, the second line of the tables is useful
| |
88 | Leuthold Funds - 2023 Annual Report |
Leuthold Funds
Expense Example Tables (Unaudited)
in comparing ongoing costs only and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Leuthold Core Investment Fund - Retail - LCORX
| | | | | | |
| | Beginning
Account Value
April 1, 2023 | | Ending
Account Value
September 30, 2023 | | Expenses Paid
During Period*
April 1, 2023 - September 30, 2023 |
Actual** | | $1,000.00 | | $1,021.60 | | $7.04 |
Hypothetical (5% return before expenses)*** | | 1,000.00 | | 1,018.10 | | 7.03 |
*Expenses are equal to the Fund’s annualized expense ratio of 1.39%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
**Excluding dividends and interest on securities sold short, your actual cost of investment in the Fund would be $6.13 and the Fund’s annualized expense ratio would be 1.21%.
***Excluding dividends and interest on securities sold short, your hypothetical cost of investment in the Fund would be $6.12 and the Fund’s annualized expense ratio would be 1.21%
Leuthold Core Investment Fund - Institutional - LCRIX
| | | | | | |
| | Beginning
Account Value
April 1, 2023 | | Ending
Account Value
September 30, 2023 | | Expenses Paid
During Period*
April 1, 2023 - September 30, 2023 |
Actual** | | $1,000.00 | | $1,022.00 | | $6.54 |
Hypothetical (5% return before expenses)*** | | 1,000.00 | | 1,018.60 | | 6.53 |
*Expenses are equal to the Fund’s annualized expense ratio of 1.29%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
**Excluding dividends and interest on securities sold short, your actual cost of investment in the Fund would be $5.63 and the Fund’s annualized expense ratio would be 1.11%.
***Excluding dividends and interest on securities sold short, your hypothetical cost of investment in the Fund would be $5.62 and the Fund’s annualized expense ratio would be 1.11%
Leuthold Global Fund - Retail - GLBLX
| | | | | | |
| | Beginning
Account Value
April 1, 2023 | | Ending
Account Value
September 30, 2023 | | Expenses Paid
During Period*
April 1, 2023 - September 30, 2023 |
Actual** | | $1,000.00 | | $1,001.10 | | $11.29 |
Hypothetical (5% return before expenses)*** | | 1,000.00 | | 1,013.79 | | 11.36 |
*Expenses are equal to the Fund’s annualized expense ratio of 2.25%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
**Excluding dividends and interest on securities sold short, your actual cost of investment in the Fund would be $9.78 and the Fund’s annualized expense ratio would be 1.95%.
***Excluding dividends and interest on securities sold short, your hypothetical cost of investment in the Fund would be $9.85 and the Fund’s annualized expense ratio would be 1.95%
| |
Leuthold Funds - 2023 Annual Report | 89 |
Leuthold Funds
Expense Example Tables (Unaudited) (continued)
Leuthold Global Fund - Institutional - GLBIX
| | | | | | |
| | Beginning
Account Value
April 1, 2023 | | Ending
Account Value
September 30, 2023 | | Expenses Paid
During Period*
April 1, 2023 - September 30, 2023 |
Actual** | | $1,000.00 | | $1,002.40 | | $9.99 |
Hypothetical (5% return before expenses)** | | 1,000.00 | | 1,015.09 | | 10.05 |
*Expenses are equal to the Fund’s annualized expense ratio of 1.99%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
**Excluding dividends and interest on securities sold short, your actual cost of investment in the Fund would be $8.53 and the Fund’s annualized expense ratio would be 1.70%.
***Excluding dividends and interest on securities sold short, your hypothetical cost of investment in the Fund would be $8.59 and the Fund’s annualized expense ratio would be 1.70%.
Leuthold Select Industries Fund - Retail - LSLTX
| | | | | | |
| | Beginning
Account Value
April 1, 2023 | | Ending
Account Value
September 30, 2023 | | Expenses Paid
During Period*
April 1, 2023 - September 30, 2023 |
Actual | | $1,000.00 | | $1,038.10 | | $7.66 |
Hypothetical (5% return before expenses) | | 1,000.00 | | 1,017.55 | | 7.59 |
*Expenses are equal to the Fund’s annualized expense ratio of 1.50%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half period.
Leuthold Grizzly Short Fund - Retail - GRZZX
| | | | | | |
| | Beginning
Account Value
April 1, 2023 | | Ending
Account Value
September 30, 2023 | | Expenses Paid
During Period*
April 1, 2023 - September 30, 2023 |
Actual** | | $1,000.00 | | $1,007.60 | | $14.44 |
Hypothetical (5% return before expenses)*** | | 1,000.00 | | 1,010.68 | | 14.47 |
*Expenses are equal to the Fund’s annualized expense ratio of 2.87%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half period.
**Excluding dividends and interest on securities sold short, your actual cost of investment in the Fund would be $8.25 and the Fund’s annualized expense ratio would be 1.64%.
***Excluding dividends and interest on securities sold short, your hypothetical cost of investment in the Fund would be $8.29 and the Fund’s annualized expense ratio would be 1.64%.
| |
90 | Leuthold Funds - 2023 Annual Report |
Leuthold Funds
Expense Example Tables (Unaudited) (continued)
Leuthold Core ETF - LCR
| | | | | | |
| | Beginning
Account Value
April 1, 2023 | | Ending
Account Value
September 30, 2023 | | Expenses Paid
During Period*
April 1, 2023 - September 30, 2023 |
Actual | | $1,000.00 | | $1,020.20 | | $3.29 |
Hypothetical (5% return before expenses) | | 1,000.00 | | 1,021.81 | | 3.29 |
*Expenses are equal to the Fund’s annualized expense ratio of 0.65%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half period.
| |
Leuthold Funds - 2023 Annual Report | 91 |
Leuthold Liquidity Risk Management Disclosure
On May 8, 2023, the Directors of Leuthold Funds, Inc. reviewed and considered a written report prepared by the program administrator of the Funds’ Liquidity Risk Management Program (the “Program”), the Funds’ Liquidity Risk Management Committee (the “Program Administrator”), which addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation for the most recent annual period (the “Review Period”). In considering the report, the Directors noted that the Program Administrator has determined that the Funds primarily hold, and continue to hold, assets that are highly liquid investments, and thus may rely on the exclusion from the requirements to determine and review a highly liquid investment minimum and to adopt shortfall policies and procedures. They then confirmed with the Program Administrator that no material changes were made to the Program and reviewed all of the material features of the Program to ensure that they understand how the Program is designed to assess and manage the risk that the Funds could not meet requests to redeem shares issued by the Funds without significant dilution of remaining investors in the Funds. The Directors noted that the Program Administrator concluded that in all market conditions and under all Fund-specific stresses to date, the Funds have been able to meet redemption needs without significant dilution to the Funds’ remaining investors during the Review Period. Following the Directors’ review and discussion, they determined that they believe the disclosures in the report, taken as a whole, provide the information necessary for the Directors to effectively assess the Program and its implementation during the Review Period, and that they are comfortable with the report’s conclusion that the Program is reasonably designed to assess and manage the Funds’ liquidity risk and complies with the requirements of Rule 22e-4, and that the Program has operated as intended during the Review Period.
| |
92 | Leuthold Funds - 2023 Annual Report |
ADDITIONAL DISCLOSURE REGARDING FUND DIRECTORS AND OFFICERS (UNAUDITED)
Independent Directors
| | | | | | | | | | |
Name, Year of Birth
and Address | | Position(s)
Held with
the Company | | Term of Office and Length of Time Served | | Principal Occupation(s) During Past Five Years | | # of
Portfolios in Fund Complex Overseen By Directors | | Other Directorships Held by Director |
Lawrence L. Horsch (1934) c/o Leuthold Weeden Capital Management 150 South Fifth Street Suite 1700 Minneapolis, MN 55402 | | Chairman and Director | | Indefinite, Director since 1995 | | Chairman, Eagle Management & Financial Corp., a management consulting firm | | 5 | | Somero Enterprises and Pioneer Sales Group |
| | | | | | | | | | |
Steven R. Schroll (1957) c/o Leuthold Weeden Capital Management 150 South Fifth Street Suite 1700 Minneapolis, MN 55402 | | Director and Chair of Nominating Committee | | Indefinite, Director since 2019 | | Retired. Served as Senior Equity Portfolio Manager at Ameriprise Financial (Columbia Management) from 2002 to 2018 | | 5 | | None |
| | | | | | | | | | |
Addison L. Piper (1946) c/o Leuthold Weeden Capital Management 150 South Fifth Street Suite 1700 Minneapolis, MN 55402 | | Director and
Chair of Audit Committee | | Indefinite, Director since 2009 | | Retired Chairman and Chief Executive Officer of Piper Sandler Companies (f/k/a Piper Jaffray Companies) | | 5 | | Piper Sandler (f/k/a Piper Jaffray Companies) |
| |
Leuthold Funds - 2023 Annual Report | 93 |
ADDITIONAL DISCLOSURE REGARDING FUND DIRECTORS AND OFFICERS (UNAUDITED)
Interested Persons
| | | | | | | | | | |
Name, Year of Birth
and Address | | Position(s)
Held with
the Company | | Term of Office and Length of Time Served | | Principal Occupation(s) During Past Five Years | | # of
Portfolios in Fund Complex Overseen By Directors | | Other Directorships Held by Director |
John C. Mueller (1968) 150 South Fifth Street Suite 1700 Minneapolis, MN 55402 | | Director President | | Indefinite, Director since 2009 One year term, President since 2011 | | Co-Chief Executive Officer of The Leuthold Group since 2005. Involved in Sales and Marketing for The Leuthold Group since 2001. | | 5 | | None |
| | | | | | | | | | |
Roger A. Peters (1960) 150 South Fifth Street Suite 1700 Minneapolis, MN 55402 | | Vice President
and
Chief Compliance
Officer
and
Anti-Money
Laundering
Officer | | One year term, Chief Compliance Officer since 2006 and Vice President since 2007 and Anti-Money Laundering Officer since 2011 | | Chief Compliance Officer of the Adviser since 2005. | | N/A | | N/A |
| | | | | | | | | | |
Glenn R. Larson (1965) 150 South Fifth Street Suite 1700 Minneapolis, MN 55402 | | Secretary and Treasurer | | One year term, Secretary and Treasurer since 2022 | | Compliance Officer of the Adviser since 2005. | | N/A | | N/A |
The Statement of Additional Information includes additional information about the Funds’ Directors and is available free of charge upon request by calling the Funds toll free at (800) 273-6886.
Information regarding the method the Funds use to vote proxies relating to portfolio securities is available without charge upon request by calling toll-free at (800) 273-6886 or by accessing the Funds’ website at www.leutholdfunds.com. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge upon request by calling toll-free at (800) 273-6886 or on the SEC’s website at www.sec.gov.
Leuthold Funds
Investment Adviser:
The Leuthold Group, LLC, doing business
as Leuthold Weeden Capital Management, Minneapolis, Minnesota
Administrator, Transfer Agent, Fund Accountant,
Shareholder Servicing Agent:
U.S. Bancorp Fund Services, LLC, Milwaukee, Wisconsin
Custodian:
U.S. Bank, N.A.,
Milwaukee, Wisconsin
Counsel:
Foley & Lardner, LLP, Milwaukee, Wisconsin
Independent Registered
Public Accounting Firm:
Cohen & Company, Ltd.
Cleveland, Ohio
The Funds are required to file their complete schedules of portfolio holdings with the SEC for their first and third fiscal quarters as an exhibit to their reports on Form N-PORT. Once filed, the Funds’ Form N-PORT is available without charge on the SEC’s website (http://www.sec.gov) and is available upon request by calling 1-800-273-6886.
This report is authorized for distribution only when preceded or accompanied by a current prospectus.
Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. The registrant has not made any amendments to its code of ethics during the period covered by this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report. A copy of the registrant’s Code of Ethics is filed herewith.
Item 3. Audit Committee Financial Expert.
The registrant’s board of directors has determined that there is at least one audit committee financial expert serving on its audit committee. Addison Piper is the “audit committee financial expert” and is considered to be “independent” as each term is defined in Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
The registrant has engaged its principal accountant to perform audit services, audit-related services, tax services and other services during the past two fiscal years. “Audit services” refer to performing an 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. “Audit-related services” refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit. “Tax services refer to the principal accountant assisting in the preparation of US tax income tax returns, state returns and, where applicable, excise tax returns, and assisting with tax compliance and tax planning. No “other services” were provided by the principal accountant. The following table details the aggregate fees billed or expected to be billed for each of the last two fiscal years for audit fees, audit-related fees, tax fees and other fees by the principal accountant.
| | | | FYE 9/30/2022 | | | FYE 9/30/2021 | | |
| | Audit Fees | | $115,000 | | | $115,000 | | |
| | Audit-Related Fees | | $0 | | | $0 | | |
| | Tax Fees | | $18,500 | | | $18,500 | | |
| | All Other Fees | | $0 | | | $0 | | |
(e)(1) The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre-approve all audit and non-audit services of the registrant, including services provided to any entity affiliated with the registrant.
(e)(2) The percentage of fees billed by Cohen & Company, Ltd., for the fiscal year ended September 30, 2023 for the fiscal year ended September 30, 2022, applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:
| | | | FYE 9/30/2023 | | | FYE 9/30/2022 | | |
| | Audit-Related Fees | | 0% | | | 0% | | |
| | Tax Fees | | 0% | | | 0% | | |
| | All Other Fees | | 0% | | | 0% | | |
(f) All of the principal accountant’s hours spent on auditing the registrant’s financial statements were attributed to work performed by full-time permanent employees of the principal accountant.
(g) The following table indicates the non-audit fees billed or expected to be billed by the registrant’s accountant for services to the registrant and to the registrant’s investment adviser (and any other controlling entity, etc.—not sub-adviser) for the last two years:
| | Non-Audit Related Fees | | FYE 9/30/2023 | | | FYE 9/30/2022 | | |
| | Registrant | | $ 0 | | | $ 0 | | |
| | Registrant’s Investment Adviser | | $ 0 | | | $ 0 | | |
(h) The audit committee of the Board of Trustees has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser is compatible with maintaining the principal accountant’s independence and has concluded that the provision of such non-audit services by the accountant has not compromised the accountant’s independence.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants.
The registrant is an issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934, (the “Act”) and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Act. The independent members of the committee are as follows: Addison Piper, Lawrence Horsch, and Steven Schroll.
(b) Not applicable.
Item 6. Investments.
(a) Schedule of Investments 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 to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of Trustees.
Item 11. Controls and Procedures.
| (a) | The Registrant’s President/Principal Executive Officer and Treasurer/Principal Financial Officer have reviewed the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider. |
| (b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 13. Exhibits.
(2) A separate certification for each principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.
(4) Change in the registrant’s independent public accountant. Filed herewith.
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) | Leuthold Funds, Inc. | |
| By (Signature and Title) | /s/ John Mueller | |
| | John Mueller, President/Principal Executive Officer |
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/ John Mueller | |
| | John Mueller, President/Principal Executive Officer |
| By (Signature and Title)* | /s/ Glenn Larson | |
| | Glenn Larson, Treasurer/Principal Financial Officer |
* Print the name and title of each signing officer under his or her signature.
