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 811-07959
Advisors Series Trust
(Exact name of registrant as specified in charter)
615 East Michigan Street
Milwaukee, WI 53202
(Address of principal executive offices) (Zip code)
Jeffrey T. Rauman, President/Chief Executive Officer
Advisors Series Trust
c/o U.S. Bancorp Fund Services, LLC
777 East Wisconsin Avenue, 4th Floor
Milwaukee, WI 53202
(Name and address of agent for service)
(626) 914-7235
(Registrant’s telephone number, including area code)
Date of fiscal year end: November 30, 2024
Date of reporting period: November 30, 2024
Item 1. Reports to Stockholders.
(a)
| | |
| Medalist Partners MBS Total Return Fund | |
| Class A Shares | SEMOX |
| Annual Shareholder Report | November 30, 2024 |
This annual shareholder report contains important information about the Medalist Partners MBS Total Return Fund for the period of December 1, 2023, to November 30, 2024. You can find additional information about the Fund at https://medalistpartnersfunds.com/fund-documents/. You can also request this information by contacting us at 1-855-736-7799.
WHAT WERE THE FUND COSTS FOR THE PAST YEAR? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Class A Shares | $127 | 1.17% |
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the 12-month period ended November 30, 2024, the Fund outperformed its benchmark of the domestic bond market, the Bloomberg U.S. Aggregate Bond Index, as well as its secondary benchmark, the Bloomberg U.S. MBS Index. The Class A shares outperformed the primary benchmark by 900 basis points and the U.S. MBS Index by nearly 900 basis points.
WHAT FACTORS INFLUENCED PERFORMANCE
The broad fixed income market struggled during much of the Fund’s 2024 fiscal year, as market participants grappled with the end of the Fed’s tightening cycle and timing of their pivot to an easing path versus remaining “higher for longer” in the face of continued employment and economic strength, improved yet above target inflation, and geopolitical and political uncertainty.
The Fund, which remains invested primarily in housing-related non-government guaranteed mortgage-backed securities (RMBS) and multifamily housing commercial-mortgage-backed securities (CMBS), along with an allocation to asset-backed securities (ABS) benefited tremendously from continued record home prices, near-record low mortgage delinquencies by credit-worthy home owners who have record levels of home equity and low locked in mortgage rates, plus strong technicals resulting in low supply and high demand for new bond supply.
The Fund’s yield, and as a result, dividend distributions, remained elevated from the Fed’s aggressive Fed Funds Rate hikes totaling 5.25% from May ’22 through November ’23 and from our decision to shift heavily from fixed rate to floating rate RMBS and CMBS bonds in 2021 and 2022 lifting the Fund’s average coupon. Additionally, as the Fed’s pivot approached and ultimately arrived, market yields and volatility declined and yield spreads began to narrow from historically wide levels that had been caused by high market rates, high market volatility, and vestiges of the onset of the pandemic along with last year’s regional bank crisis.
Fund performance was further bolstered by our decision to shift back from floating rate bonds to fixed rate bonds as the Fed tightening cycle came to an end, resulting in locked-in high coupons and more duration (interest rate sensitivity). Over several quarters we increased the Fund’s duration from about 1 year to about 4 years, closer to but still lower than the benchmark index’s duration of about 6 years.
HOW DID THE FUND PERFORM SINCE INCEPTION?*
The $1,000,000 chart reflects a hypothetical $1,000,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including 12b-1 fees, management fees and other expenses were deducted.
| Medalist Partners MBS Total Return Fund | PAGE 1 | TSR-AR-00768D152 |
CUMULATIVE PERFORMANCE (Initial Investment of $1,000,000)
ANNUAL AVERAGE TOTAL RETURN (%)
| | | |
| | 1 Year | 5 Year | Since Inception
(12/18/2015) |
Medalist Partners MBS Total Return Fund Class A Shares (without sales charge) | 16.27 | 1.82 | 2.92 |
Medalist Partners MBS Total Return Fund Class A Shares (with sales charge) | 13.98 | 1.42 | 2.69 |
Bloomberg U.S. Aggregate Bond Index | 6.88 | -0.01 | 1.60 |
Bloomberg U.S. Mortgage-Backed Securities Index | 7.33 | -0.35 | 1.03 |
Visit https://medalistpartnersfunds.com/fund-documents/ for more recent performance information.
| * | The Fund’s past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. |
KEY FUND STATISTICS (as of November 30, 2024)
| |
Net Assets | $304,438,921 |
Number of Holdings | 180 |
Net Advisory Fee | $1,254,558 |
Portfolio Turnover | 30% |
30-Day SEC Yield | 6.67% |
30-Day SEC Yield Unsubsidized | 6.71% |
Visit https://medalistpartnersfunds.com/fund-documents/ for more recent performance information.
WHAT DID THE FUND INVEST IN? (as of November 30, 2024)*
Sector Breakdown (% of net assets)
| * | Expressed as a percentage of net assets. |
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://medalistpartnersfunds.com/fund-documents/.
| Medalist Partners MBS Total Return Fund | PAGE 2 | TSR-AR-00768D152 |
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Medalist Partners LP documents not be householded, please contact Medalist Partners LP at 1-855-736-7799, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Medalist Partners LP or your financial intermediary.
| Medalist Partners MBS Total Return Fund | PAGE 3 | TSR-AR-00768D152 |
10000001026643109176211344981182055107401611754951009165111273212937931000000102233910551991041037115337712373881223115106607210786491152807100000010161791037910103287411153141159215115062810183121020977109580282.214.53.3
| | |
| Medalist Partners MBS Total Return Fund | |
| Investor Share Class | SEMPX |
| Annual Shareholder Report | November 30, 2024 |
This annual shareholder report contains important information about the Medalist Partners MBS Total Return Fund for the period of December 1, 2023, to November 30, 2024. You can find additional information about the Fund at https://medalistpartnersfunds.com/fund-documents/. You can also request this information by contacting us at 1-855-736-7799.
WHAT WERE THE FUND COSTS FOR THE PAST YEAR? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Investor Share Class | $126 | 1.17% |
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the 12-month period ended November 30, 2024, the Fund outperformed its benchmark of the domestic bond market, the Bloomberg U.S. Aggregate Bond Index, as well as its secondary benchmark, the Bloomberg U.S. MBS Index. The Investor share class outperformed the primary benchmark by 900 basis points and the U.S. MBS Index by nearly 900 basis points.
WHAT FACTORS INFLUENCED PERFORMANCE
The broad fixed income market struggled during much of the Fund’s 2024 fiscal year, as market participants grappled with the end of the Fed’s tightening cycle and timing of their pivot to an easing path versus remaining “higher for longer” in the face of continued employment and economic strength, improved yet above target inflation, and geopolitical and political uncertainty.
The Fund, which remains invested primarily in housing-related non-government guaranteed mortgage-backed securities (RMBS) and multifamily housing commercial-mortgage-backed securities (CMBS), along with an allocation to asset-backed securities (ABS) benefited tremendously from continued record home prices, near-record low mortgage delinquencies by credit-worthy home owners who have record levels of home equity and low locked in mortgage rates, plus strong technicals resulting in low supply and high demand for new bond supply.
The Fund’s yield, and as a result, dividend distributions, remained elevated from the Fed’s aggressive Fed Funds Rate hikes totaling 5.25% from May ’22 through November ’23 and from our decision to shift heavily from fixed rate to floating rate RMBS and CMBS bonds in 2021 and 2022 lifting the Fund’s average coupon. Additionally, as the Fed’s pivot approached and ultimately arrived, market yields and volatility declined and yield spreads began to narrow from historically wide levels that had been caused by high market rates, high market volatility, and vestiges of the onset of the pandemic along with last year’s regional bank crisis.
Fund performance was further bolstered by our decision to shift back from floating rate bonds to fixed rate bonds as the Fed tightening cycle came to an end, resulting in locked-in high coupons and more duration (interest rate sensitivity). Over several quarters we increased the Fund’s duration from about 1 year to about 4 years, closer to but still lower than the benchmark index’s duration of about 6 years.
HOW DID THE FUND PERFORM OVER THE PAST 10 YEARS?*
The $1,000,000 chart reflects a hypothetical $1,000,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including 12b-1 fees, management fees and other expenses were deducted.
| Medalist Partners MBS Total Return Fund | PAGE 1 | TSR-AR-00770X741 |
CUMULATIVE PERFORMANCE (Initial Investment of $1,000,000)
ANNUAL AVERAGE TOTAL RETURN (%)
| | | |
| | 1 Year | 5 Year | 10 Year |
Medalist Partners MBS Total Return Fund Investor Share Class | 16.15 | 1.78 | 3.02 |
Bloomberg U.S. Aggregate Bond Index | 6.88 | -0.01 | 1.52 |
Bloomberg U.S. Mortgage-Backed Securities Index | 7.33 | -0.35 | 1.09 |
Visit https://medalistpartnersfunds.com/fund-documents/ for more recent performance information.
| * | The Fund’s past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. |
KEY FUND STATISTICS (as of November 30, 2024)
| |
Net Assets | $304,438,921 |
Number of Holdings | 180 |
Net Advisory Fee | $1,254,558 |
Portfolio Turnover | 30% |
30-Day SEC Yield | 6.82% |
30-Day SEC Yield Unsubsidized | 6.85% |
Visit https://medalistpartnersfunds.com/fund-documents/ for more recent performance information.
WHAT DID THE FUND INVEST IN? (as of November 30, 2024)*
Sector Breakdown (% of net assets)
| * | Expressed as a percentage of net assets. |
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://medalistpartnersfunds.com/fund-documents/.
| Medalist Partners MBS Total Return Fund | PAGE 2 | TSR-AR-00770X741 |
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Medalist Partners LP documents not be householded, please contact Medalist Partners LP at 1-855-736-7799, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Medalist Partners LP or your financial intermediary.
| Medalist Partners MBS Total Return Fund | PAGE 3 | TSR-AR-00770X741 |
10000001042553107034111381621182727123231511184861224282105086711574231346008100000010097031031630106478910504981163859124863312342311075761108845211632841000000101699410336901055795105067311345341179191117045610358601038570111468582.214.53.3
| | |
| Medalist Partners MBS Total Return Fund | |
| Institutional Share Class | SEMMX |
| Annual Shareholder Report | November 30, 2024 |
This annual shareholder report contains important information about the Medalist Partners MBS Total Return Fund for the period of December 1, 2023, to November 30, 2024. You can find additional information about the Fund at https://medalistpartnersfunds.com/fund-documents/. You can also request this information by contacting us at 1-855-736-7799.
WHAT WERE THE FUND COSTS FOR THE PAST YEAR? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Institutional Share Class | $100 | 0.92% |
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the 12-month period ended November 30, 2024, the Fund outperformed its benchmark of the domestic bond market, the Bloomberg U.S. Aggregate Bond Index, as well as its secondary benchmark, the Bloomberg U.S. MBS Index. The Institutional share class outperformed both indices by over 900 basis points.
WHAT FACTORS INFLUENCED PERFORMANCE
The broad fixed income market struggled during much of the Fund’s 2024 fiscal year, as market participants grappled with the end of the Fed’s tightening cycle and timing of their pivot to an easing path versus remaining “higher for longer” in the face of continued employment and economic strength, improved yet above target inflation, and geopolitical and political uncertainty.
The Fund, which remains invested primarily in housing-related non-government guaranteed mortgage-backed securities (RMBS) and multifamily housing commercial-mortgage-backed securities (CMBS), along with an allocation to asset-backed securities (ABS) benefited tremendously from continued record home prices, near-record low mortgage delinquencies by credit-worthy home owners who have record levels of home equity and low locked in mortgage rates, plus strong technicals resulting in low supply and high demand for new bond supply.
The Fund’s yield, and as a result, dividend distributions, remained elevated from the Fed’s aggressive Fed Funds Rate hikes totaling 5.25% from May ’22 through November ’23 and from our decision to shift heavily from fixed rate to floating rate RMBS and CMBS bonds in 2021 and 2022 lifting the Fund’s average coupon. Additionally, as the Fed’s pivot approached and ultimately arrived, market yields and volatility declined and yield spreads began to narrow from historically wide levels that had been caused by high market rates, high market volatility, and vestiges of the onset of the pandemic along with last year’s regional bank crisis.
Fund performance was further bolstered by our decision to shift back from floating rate bonds to fixed rate bonds as the Fed tightening cycle came to an end, resulting in locked-in high coupons and more duration (interest rate sensitivity). Over several quarters we increased the Fund’s duration from about 1 year to about 4 years, closer to but still lower than the benchmark index’s duration of about 6 years.
HOW DID THE FUND PERFORM OVER THE PAST 10 YEARS?*
The $1,000,000 chart reflects a hypothetical $1,000,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including 12b-1 fees, management fees and other expenses were deducted.
| Medalist Partners MBS Total Return Fund | PAGE 1 | TSR-AR-00770X758 |
CUMULATIVE PERFORMANCE (Initial Investment of $1,000,000)
ANNUAL AVERAGE TOTAL RETURN (%)
| | | |
| | 1 Year | 5 Year | 10 Year |
Medalist Partners MBS Total Return Fund Institutional Share Class | 16.46 | 1.98 | 3.25 |
Bloomberg U.S. Aggregate Bond Index | 6.88 | -0.01 | 1.52 |
Bloomberg U.S. Mortgage-Backed Securities Index | 7.33 | -0.35 | 1.09 |
Visit https://medalistpartnersfunds.com/fund-documents/ for more recent performance information.
| * | The Fund’s past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. |
KEY FUND STATISTICS (as of November 30, 2024)
| |
Net Assets | $304,438,921 |
Number of Holdings | 180 |
Net Advisory Fee | $1,254,558 |
Portfolio Turnover | 30% |
30-Day SEC Yield | 7.06% |
30-Day SEC Yield Unsubsidized | 7.09% |
Visit https://medalistpartnersfunds.com/fund-documents/ for more recent performance information.
WHAT DID THE FUND INVEST IN? (as of November 30, 2024)*
Sector Breakdown (% of net assets)
| * | Expressed as a percentage of net assets. |
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://medalistpartnersfunds.com/fund-documents/.
| Medalist Partners MBS Total Return Fund | PAGE 2 | TSR-AR-00770X758 |
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Medalist Partners LP documents not be householded, please contact Medalist Partners LP at 1-855-736-7799, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Medalist Partners LP or your financial intermediary.
| Medalist Partners MBS Total Return Fund | PAGE 3 | TSR-AR-00770X758 |
10000001045069107556411464951194688124786511320021242407107011811803311376326100000010097031031630106478910504981163859124863312342311075761108845211632841000000101699410336901055795105067311345341179191117045610358601038570111468582.214.53.3
| | |
| Medalist Partners Short Duration Fund | |
| Investor Share Class | SEMRX |
| Annual Shareholder Report | November 30, 2024 |
This annual shareholder report contains important information about the Medalist Partners Short Duration Fund for the period of December 1, 2023, to November 30, 2024. You can find additional information about the Fund at https://medalistpartnersfunds.com/fund-documents/. You can also request this information by contacting us at 1-855-736-7799.
WHAT WERE THE FUND COSTS FOR THE PAST YEAR? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Investor Share Class | $89 | 0.85% |
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the 12-month period ended November 30, 2024, the Fund outperformed its benchmark, the Bloomberg U.S Aggregate Bond Index. The Fund also outperformed its secondary benchmark, the Bloomberg 1-3 Year Government Index, with a gross return of nearly double the 5% return earned by the benchmark.
WHAT FACTORS INFLUENCED PERFORMANCE
The broad fixed income market struggled during much of the Fund’s 2024 fiscal year, as market participants grappled with the end of the Fed’s tightening cycle and timing of their pivot to an easing path versus remaining “higher for longer” in the face of continued employment and economic strength, improved yet above target inflation, and geopolitical and political uncertainty.
The Fund’s outperformance was achieved with less interest rate sensitivity than the indices, and a higher yield than the indices, the result of historically wide yield spreads for securitized bonds in the front end of the yield curve. The Fund earned about 6.6% in interest income, while the Fund’s bond prices rose about 3% from declining short interest rates and contracting yield spreads.
The Fund, which invests primarily in liquid, investment grade securitized bonds with durations generally ranging between 0.25 years and 3 years, benefits from investing in securities that generally are not eligible for investment by money market funds, but shorter than bonds typically purchased by most bond funds. We own an actively managed, diversified allocation to Non-Agency RMBS, CMBS, ABS, and AAA-rated CLOs.
Leading into the beginning of the Fed’s tightening cycle in 2022 we shifted 90% of the Fund’s assets into floating rate bonds with an overall duration of about 0.25 years. The coupons on these bonds increased by more than 5% as the Fed raised their target Fed Funds Rate in 2022-2023. Going into 2024, we shifted about half of the Fund back into fixed rate bonds with more interest rate sensitivity, extending duration to about 1 year. As the front end of the curve rallied in anticipation of and in conjunction with the Fed’s pivot, these fixed rate bonds rose in price while maintaining their high coupons and yield. The Fund continues to yield about 6.25% with the Fund’s average bond price remaining at a discount to par, creating the opportunity for further strong performance in fiscal 2025.
The front end of the yield curve, most sensitive to Fed policy, performed well, with short yields moving substantially lower over the twelve months. The 2-year Treasury yield began the fiscal year at 4.68%, rose to 5.04% in late April despite the Fed holding the Fed Funds Rate steady for the previous 9 months, then declined to a low of 3.53% in late September at the height of market expectations for a rapid easing phase. By the end of the fiscal year on November 30th the yield had risen to 4.15%, reflecting a net decline of over 50 basis points during the 12-month period.
| Medalist Partners Short Duration Fund | PAGE 1 | TSR-AR-00770X618 |
HOW DID THE FUND PERFORM OVER THE PAST 10 YEARS?*
The $1,000,000 chart reflects a hypothetical $1,000,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including 12b-1 fees, management fees and other expenses were deducted.
CUMULATIVE PERFORMANCE (Initial Investment of $1,000,000)
ANNUAL AVERAGE TOTAL RETURN (%)
| | | |
| | 1 Year | 5 Year | 10 Year |
Medalist Partners Short Duration Fund Investor Share Class | 8.79 | 2.96 | 2.61 |
Bloomberg U.S. Aggregate Bond Index | 6.88 | -0.01 | 1.52 |
Bloomberg 1-3 Year Government Index | 5.00 | 1.37 | 1.34 |
Visit https://medalistpartnersfunds.com/fund-documents/ for more recent performance information.
| * | The Fund’s past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. |
KEY FUND STATISTICS (as of November 30, 2024)
| |
Net Assets | $274,516,874 |
Number of Holdings | 162 |
Net Advisory Fee | $848,381 |
Portfolio Turnover | 86% |
30-Day SEC Yield | 5.94% |
30-Day SEC Yield Unsubsidized | 5.85% |
Visit https://medalistpartnersfunds.com/fund-documents/ for more recent performance information.
WHAT DID THE FUND INVEST IN? (as of November 30, 2024)*
Sector Breakdown (% of net assets)
| * | Expressed as a percentage of net assets. |
| Medalist Partners Short Duration Fund | PAGE 2 | TSR-AR-00770X618 |
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://medalistpartnersfunds.com/fund-documents/.
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Medalist Partners LP documents not be householded, please contact Medalist Partners LP at 1-855-736-7799, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Medalist Partners LP or your financial intermediary.
| Medalist Partners Short Duration Fund | PAGE 3 | TSR-AR-00770X618 |
10000001012282103021010600501083055111773811017761126559109504111889171293420100000010097031031630106478910504981163859124863312342311075761108845211632841000000100425610116841016427102430610673391102673109895410530571087945114232555.142.60.70.01.6
| | |
| Medalist Partners Short Duration Fund | |
| Institutional Share Class | SEMIX |
| Annual Shareholder Report | November 30, 2024 |
This annual shareholder report contains important information about the Medalist Partners Short Duration Fund for the period of December 1, 2023, to November 30, 2024. You can find additional information about the Fund at https://medalistpartnersfunds.com/fund-documents/. You can also request this information by contacting us at 1-855-736-7799.
WHAT WERE THE FUND COSTS FOR THE PAST YEAR? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Institutional Share Class | $63 | 0.60% |
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the 12-month period ended November 30, 2024, the Fund outperformed its benchmark, the Bloomberg U.S Aggregate Bond Index. The Fund also outperformed its secondary benchmark, the Bloomberg 1-3 Year Government Index, with a gross return of nearly double the 5% return earned by the benchmark.
WHAT FACTORS INFLUENCED PERFORMANCE
The broad fixed income market struggled during much of the Fund’s 2024 fiscal year, as market participants grappled with the end of the Fed’s tightening cycle and timing of their pivot to an easing path versus remaining “higher for longer” in the face of continued employment and economic strength, improved yet above target inflation, and geopolitical and political uncertainty.
The Fund’s outperformance was achieved with less interest rate sensitivity than the indices, and a higher yield than the indices, the result of historically wide yield spreads for securitized bonds in the front end of the yield curve. The Fund earned about 6.6% in interest income, while the Fund’s bond prices rose about 3% from declining short interest rates and contracting yield spreads.
The Fund, which invests primarily in liquid, investment grade securitized bonds with durations generally ranging between 0.25 years and 3 years, benefits from investing in securities that generally are not eligible for investment by money market funds, but shorter than bonds typically purchased by most bond funds. We own an actively managed, diversified allocation to Non-Agency RMBS, CMBS, ABS, and AAA-rated CLOs.
Leading into the beginning of the Fed’s tightening cycle in 2022 we shifted 90% of the Fund’s assets into floating rate bonds with an overall duration of about 0.25 years. The coupons on these bonds increased by more than 5% as the Fed raised their target Fed Funds Rate in 2022-2023. Going into 2024, we shifted about half of the Fund back into fixed rate bonds with more interest rate sensitivity, extending duration to about 1 year. As the front end of the curve rallied in anticipation of and in conjunction with the Fed’s pivot, these fixed rate bonds rose in price while maintaining their high coupons and yield. The Fund continues to yield about 6.25% with the Fund’s average bond price remaining at a discount to par, creating the opportunity for further strong performance in fiscal 2025.
The front end of the yield curve, most sensitive to Fed policy, performed well, with short yields moving substantially lower over the twelve months. The 2-year Treasury yield began the fiscal year at 4.68%, rose to 5.04% in late April despite the Fed holding the Fed Funds Rate steady for the previous 9 months, then declined to a low of 3.53% in late September at the height of market expectations for a rapid easing phase. By the end of the fiscal year on November 30th the yield had risen to 4.15%, reflecting a net decline of over 50 basis points during the 12-month period.
| Medalist Partners Short Duration Fund | PAGE 1 | TSR-AR-00770X592 |
HOW DID THE FUND PERFORM OVER THE PAST 10 YEARS?*
The $1,000,000 chart reflects a hypothetical $1,000,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including 12b-1 fees, management fees and other expenses were deducted.
CUMULATIVE PERFORMANCE (Initial Investment of $1,000,000)
ANNUAL AVERAGE TOTAL RETURN (%)
| | | |
| | 1 Year | 5 Year | 10 Year |
Medalist Partners Short Duration Fund Institutional Share Class | 9.06 | 3.20 | 2.85 |
Bloomberg U.S. Aggregate Bond Index | 6.88 | -0.01 | 1.52 |
Bloomberg 1-3 Year Government Index | 5.00 | 1.37 | 1.34 |
Visit https://medalistpartnersfunds.com/fund-documents/ for more recent performance information.
| * | The Fund’s past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. |
KEY FUND STATISTICS (as of November 30, 2024)
| |
Net Assets | $274,516,874 |
Number of Holdings | 162 |
Net Advisory Fee | $848,381 |
Portfolio Turnover | 86% |
30-Day SEC Yield | 6.20% |
30-Day SEC Yield Unsubsidized | 6.10% |
Visit https://medalistpartnersfunds.com/fund-documents/ for more recent performance information.
WHAT DID THE FUND INVEST IN? (as of November 30, 2024)*
Sector Breakdown (% of net assets)
| * | Expressed as a percentage of net assets. |
| Medalist Partners Short Duration Fund | PAGE 2 | TSR-AR-00770X592 |
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://medalistpartnersfunds.com/fund-documents/.
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Medalist Partners LP documents not be householded, please contact Medalist Partners LP at 1-855-736-7799, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Medalist Partners LP or your financial intermediary.
| Medalist Partners Short Duration Fund | PAGE 3 | TSR-AR-00770X592 |
10000001014838103550510682031094344113129511167651145942111545912141311324168100000010097031031630106478910504981163859124863312342311075761108845211632841000000100425610116841016427102430610673391102673109895410530571087945114232555.142.60.70.01.6
(b) Not applicable.
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 substantive 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 Trustees has determined that there is at least one audit committee financial expert serving on its audit committee. Mr. Joe D. Redwine, Ms. Michele Rackey, Ms. Anne Kritzmire, and Mr. Craig Wainscott are the “audit committee financial experts” and are 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 professional services rendered by the principal accountant including the review of federal income tax returns, review of federal excise tax returns, review of state tax returns, if any, and assistance with calculation of required income, capital gain and excise distributions. There were no “other services” 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 11/30/2024 | FYE11/30/2023 |
| (a) Audit Fees | $50,700 | $49,450 |
| (b) Audit-Related Fees | N/A | N/A |
| (c) Tax Fees | $7,200 | $7,200 |
| (d) All Other Fees | N/A | N/A |
(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 Tait, Weller & Baker LLP applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:
| | FYE 11/30/2024 | FYE 11/30/2023 |
| Audit-Related Fees | 0% | 0% |
| Tax Fees | 0% | 0% |
| All Other Fees | 0% | 0% |
(f) During the audit of the registrant’s financial statements, 100 percent of the hours were attributed to work performed by persons other than 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 11/30/2024 | FYE 11/30/2023 |
| Registrant | N/A | N/A |
| Registrant’s Investment Adviser | N/A | N/A |
(h) The audit committee of the board of trustees/directors 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) The registrant has not been identified by the U.S. Securities and Exchange Commission as having filed an annual report issued by a registered public accounting firm branch or office that is located in a foreign jurisdiction where the Public Company Accounting Oversight Board is unable to inspect or completely investigate because of a position taken by an authority in that jurisdiction.
(j) The registrant is not a foreign issuer.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
| (a) | Schedule of Investments is included as part of the report to shareholders filed under Item 7 of this Form. |
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Investment Companies.
ADVISORS SERIES TRUST
Medalist Partners MBS Total Return Fund
Medalist Partners Short Duration Fund
Core Financial Statements
November 30, 2024
TABLE OF CONTENTS
Medalist Partners MBS Total Return Fund
Schedule of Investments
November 30, 2024
| | | | | | | | |
NON-AGENCY RESIDENTIAL
MORTGAGE-BACKED SECURITIES — 63.2%
| |
AFC Home Equity Loan Trust, Series 1997-3, Class 1A4, 7.47%, 09/27/2027(a) | | | $28,092 | | | $27,827 | |
AMSR Trust
| | | | | | | |
Series 2020-SFR4, Class G1, 4.00%, 11/17/2037(b) | | | 750,000 | | | 735,005 | |
Series 2021-SFR3, Class H, 4.90%, 10/17/2038(b) | | | 1,750,000 | | | 1,641,531 | |
Angel Oak Mortgage Trust, Series 2023-6, Class A3, 6.50%, 12/25/2067(a)(b) | | | 1,222,316 | | | 1,231,873 | |
Angel Oak Mortgage Trust LLC, Series 2022-3, Class A3, 4.14%, 01/25/2067(b)(c) | | | 1,596,778 | | | 1,485,139 | |
Asset Backed Securities Corp. Home Equity Loan Trust, Series 1999-LB1, Class A1F, 7.11%, 06/21/2029 | | | 163,149 | | | 163,195 | |
Banc of America Funding Corp.
| | | | | | | |
Series 2006-D, Class 5A2, 5.40%, 05/20/2036(c) | | | 5,558 | | | 4,957 | |
Series 2008-R4, Class 1A4, 5.30% (1 mo. Term SOFR + 0.56%), 07/25/2037(b) | | | 1,051,788 | | | 716,065 | |
BRAVO Residential Funding Trust, Series 2024-NQM2, Class B1,
7.91%, 02/25/2064(b) | | | 1,335,000 | | | 1,351,066 | |
Chase Mortgage Finance Corp.
| | | | | | | |
Series 2020-CL1, Class M4, 9.05% (1 mo. Term SOFR + 4.46%), 10/25/2057(b) | | | 247,811 | | | 260,817 | |
Series 2024-RPL4, Class A1A, 3.38%, 12/25/2064(b)(c) | | | 1,525,702 | | | 1,402,047 | |
CHNGE Mortgage Trust, Series 2022-1, Class A1, 3.01%, 01/25/2067(b)(c) | | | 2,045,698 | | | 1,911,569 | |
Citigroup Mortgage Loan Trust, Series 2004-HYB4, Class WA, 6.70%, 12/25/2034(c) | | | 2,700 | | | 2,656 | |
COLT Funding LLC
| | | | | | | |
Series 2021-6, Class B1, 4.15%, 12/25/2066(b)(c) | | | 1,713,000 | | | 1,458,985 | |
Series 2022-1, Class B1, 4.05%, 12/27/2066(b)(c) | | | 3,000,000 | | | 2,635,821 | |
| | | | | | | | |
| | | | | | | | |
Series 2022-6, Class A2, 4.65%, 06/27/2067(a)(b) | | | $1,535,518 | | | $1,523,894 | |
COLT Mortgage Loan Trust
| | | | | | | |
Series 2021-3, Class B2, 4.12%, 09/27/2066(b)(c) | | | 1,578,000 | | | 1,217,800 | |
Series 2021-4, Class B2, 4.14%, 10/25/2066(b)(c) | | | 2,625,000 | | | 1,973,790 | |
Conseco Finance Home Loan Trust, Series 2000-E, Class B1,
10.26%, 08/15/2031(c) | | | 54,062 | | | 7,181 | |
CoreVest American Finance Trust
| | | | | | | |
Series 2019-1, Class D, 4.82%, 03/15/2052(b) | | | 1,457,813 | | | 1,394,588 | |
Series 2019-1, Class E, 5.70%, 03/15/2052(b)(c) | | | 242,500 | | | 230,822 | |
Countrywide Alternative Loan Trust
| | | | | | | |
Series 2004-15, Class 2A2, 6.61%, 09/25/2034(c) | | | 158,691 | | | 146,011 | |
Series 2006-4CB, Class 2A3, 5.50%, 04/25/2036 | | | 3,322 | | | 2,442 | |
Series 2006-OA3, Class 1A1, 5.10% (1 mo. Term SOFR + 0.51%), 05/25/2036 | | | 6,573 | | | 6,011 | |
Series 2006-OA9, Class 1A1, 4.92% (1 mo. Term SOFR + 0.31%), 07/20/2046 | | | 21,300 | | | 17,716 | |
Credit Suisse Mortgage Trust
| | | | | | | |
Series 2020-AFC1, Class B1, 3.45%, 02/25/2050(b)(c) | | | 4,228,000 | | | 3,878,956 | |
Series 2020-AFC1, Class B2, 4.42%, 02/25/2050(b)(c) | | | 5,459,650 | | | 4,871,916 | |
Deephaven Residential Mortgage Trust
| | | | | | | |
Series 2021-1, Class B2,
3.96%, 05/25/2065(b)(c) | | | 3,200,000 | | | 2,765,181 | |
Series 2021-4, Class B2,
4.44%, 11/25/2066(b)(c) | | | 4,000,000 | | | 3,146,532 | |
Eagle Re Ltd., Series 2023-1, Class M1A, 6.73% (30 day avg SOFR US + 2.00%), 09/26/2033(b) | | | 623,957 | | | 627,074 | |
Ellington Financial Mortgage Trust
| | | | | | | |
Series 2022-4, Class B1,
5.93%, 09/25/2067(b)(c) | | | 3,000,000 | | | 2,939,981 | |
Series 2024-RM2, Class A1A, 5.00%, 07/25/2054(b) | | | 1,093,867 | | | 1,010,468 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners MBS Total Return Fund
Schedule of Investments
November 30, 2024(Continued)
| | | | | | | | |
NON-AGENCY RESIDENTIAL
MORTGAGE-BACKED SECURITIES — (Continued)
| |
Fannie Mae Connecticut Avenue Securities
| | | | | | | |
Series 2020-SBT1, Class 1B1, 11.60% (30 day avg
SOFR US + 6.86%), 02/25/2040(b) | | | $2,000,000 | | | $2,166,988 | |
Series 2024-R01, Class 1B1, 7.43% (30 day avg
SOFR US + 2.70%), 01/25/2044(b) | | | 1,000,000 | | | 1,023,732 | |
Series 2024-R01, Class 1B2, 8.73% (30 day avg
SOFR US + 4.00%), 01/25/2044(b) | | | 1,000,000 | | | 1,043,244 | |
Series 2024-R02, Class 1B2, 8.43% (30 day avg
SOFR US + 3.70%), 02/25/2044(b) | | | 2,500,000 | | | 2,574,020 | |
Series 2024-R03, Class 2B1, 7.53% (30 day avg
SOFR US + 2.80%), 03/25/2044(b) | | | 1,500,000 | | | 1,523,434 | |
FIGRE Trust 2023-HE1
| | | | | | | |
Series 2024-HE4, Class A, 5.06%, 09/25/2054(b)(c) | | | 1,454,243 | | | 1,457,725 | |
Series 2024-HE4, Class B, 5.25%, 09/25/2054(b)(c) | | | 969,496 | | | 953,029 | |
Flagstar Mortgage Trust, Series 2018-1, Class B5, 3.94%, 03/25/2048(b)(c) | | | 1,206,000 | | | 855,904 | |
Fort KL, Series 2021-SFR1, Class G,
4.11%, 09/17/2038(b) | | | 2,811,000 | | | 2,550,476 | |
Freddie Mac Structured Agency Credit Risk
| | | | | | | |
Series 2019-DNA4, Class B2, 11.10% (30 day avg
SOFR US + 6.36%), 10/25/2049(b) | | | 2,216,000 | | | 2,439,498 | |
Series 2019-FTR3, Class B2, 9.77% (30 day avg
SOFR US + 4.91%), 09/25/2047(b) | | | 2,533,500 | | | 2,724,293 | |
Series 2019-FTR4, Class B2, 9.85% (30 day avg
SOFR US + 5.11%), 11/25/2047(b) | | | 2,800,000 | | | 3,038,200 | |
| | | | | | | | |
| | | | | | | | |
Series 2022-DNA2, Class M2, 8.48% (30 day avg
SOFR US + 3.75%), 02/25/2042(b) | | | $750,000 | | | $786,660 | |
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2024-DNA2, Class M2, 6.43% (30 day avg SOFR US + 1.70%), 05/25/2044(b) | | | 1,300,000 | | | 1,309,309 | |
Freddie Mac Structured Agency Credit Risk REMIC Trust
| | | | | | | |
Series 2020-DNA2, Class B2, 9.65% (30 day avg
SOFR US + 4.91%), 02/25/2050(b) | | | 2,590,000 | | | 2,793,358 | |
Series 2020-HQA1, Class B2, 9.95% (30 day avg
SOFR US + 5.21%), 01/25/2050(b) | | | 2,300,000 | | | 2,511,557 | |
Freddie Mac Whole Loan Securities Trust
| | | | | | | |
Series 2017-SC01, Class M2, 3.64%, 12/25/2046(b)(c) | | | 595,000 | | | 531,399 | |
Series 2017-SC02, Class M2, 3.86%, 05/25/2047(b)(c) | | | 1,411,000 | | | 1,309,670 | |
GreenPoint Mortgage Funding Trust, Series 2005-AR4, Class 4A1A, 5.32% (1 mo. Term SOFR + 0.73%), 10/25/2045 | | | 9,472,029 | | | 9,054,865 | |
GS Mortgage-Backed Securities Trust, Series 2021-GR1, Class B4, 3.09%, 11/25/2051(b)(c) | | | 2,139,299 | | | 1,728,796 | |
GSAA Home Equity Trust, Series 2006-5, Class 2A1, 4.84% (1 mo. Term SOFR + 0.25%), 03/25/2036 | | | 24,191 | | | 7,940 | |
Imperial Fund Mortgage Trust, Series 2020-NQM1, Class B1, 4.00%, 10/25/2055(b)(c) | | | 1,602,000 | | | 1,429,002 | |
JP Morgan Mortgage Trust
| | | | | | | |
Series 2019-5, Class B5, 4.46%, 11/25/2049(b)(c) | | | 1,232,439 | | | 1,040,084 | |
Series 2019-5, Class B6, 4.37%, 11/25/2049(b)(c) | | | 3,606,176 | | | 2,259,427 | |
Series 2019-HYB1, Class B4, 4.97%, 10/25/2049(b)(c) | | | 4,715,262 | | | 4,687,793 | |
Series 2020-2, Class B6Z, 6.87%, 07/25/2050(b)(c) | | | 3,864,437 | | | 2,872,641 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners MBS Total Return Fund
Schedule of Investments
November 30, 2024(Continued)
| | | | | | | | |
NON-AGENCY RESIDENTIAL
MORTGAGE-BACKED SECURITIES — (Continued)
| |
Series 2021-3, Class A3X, 0.50%, 07/25/2051(b)(c)(d) | | | $55,914,559 | | | $1,639,826 | |
Series 2022-INV1, Class B4, 3.29%, 03/25/2052(b)(c) | | | 3,284,024 | | | 2,631,508 | |
Series 2024-CCM1, Class A9, 6.00%, 04/25/2055(b)(c) | | | 4,000,000 | | | 4,000,000 | |
JP Morgan Wealth Management
| | | | | | | |
Series 2021-CL1, Class M4, 7.48% (30 day avg
SOFR US + 2.75%), 03/25/2051(b) | | | 883,915 | | | 850,800 | |
Series 2021-CL1, Class M5, 8.58% (30 day avg
SOFR US + 3.85%), 03/25/2051(b) | | | 601,632 | | | 551,241 | |
Merrill Lynch Mortgage Investors Trust, Series 2005-AR1, Class M2, 5.71% (1 mo.
Term SOFR + 1.12%), 06/25/2036 | | | 1,898,267 | | | 1,506,323 | |
Mill City Mortgage Loan Trust, Series 2019-1, Class B1, 3.50%, 10/25/2069(b)(c) | | | 2,245,863 | | | 1,935,726 | |
Morgan Stanley Residential Mortgage Loan Trust, Series 2024-INV2, Class A1, 6.50%, 02/25/2054(b)(c) | | | 1,628,002 | | | 1,653,498 | |
New Residential Mortgage Loan Trust
| | | | | | | |
Series 2021-NQ2R, Class B1, 3.01%, 10/25/2058(b)(c) | | | 2,034,000 | | | 1,958,596 | |
Series 2021-NQ2R, Class B2, 3.96%, 10/25/2058(b)(c) | | | 1,813,000 | | | 1,760,583 | |
NMLT Trust, Series 2021-INV1, Class B1,
3.61%, 05/25/2056(b)(c) | | | 2,326,000 | | | 1,840,705 | |
Onslow Bay Mortgage Loan Trust
| | | | | | | |
Series 2024-NQM2, Class A3, 6.18%, 12/25/2063(a)(b) | | | 1,262,164 | | | 1,266,894 | |
Series 2024-NQM2, Class M1, 6.86%, 12/25/2063(b)(c) | | | 1,238,000 | | | 1,253,491 | |
Point Securitization Trust 2023-1, Series 2024-1, Class A1, 6.50%, 06/25/2054(b) | | | 2,931,436 | | | 2,918,125 | |
| | | | | | | | |
| | | | | | | | |
Pretium Mortgage Credit Partners LLC, Series 2021-NPL6, Class A2, 5.07%, 07/25/2051(a)(b)(e) | | | $2,259,509 | | | $2,228,825 | |
PRPM LLC
| | | | | | | |
Series 2024-4, Class A1, 6.41%, 08/25/2029(a)(b) | | | 957,451 | | | 958,944 | |
Series 2024-6, Class A1, 5.70%, 11/25/2029(a)(b) | | | 2,000,000 | | | 2,018,022 | |
Series 2024-RCF1, Class A1, 4.00%, 01/25/2054(a)(b) | | | 708,271 | | | 694,325 | |
Series 2024-RCF2, Class A2, 3.75%, 03/25/2054(a)(b) | | | 1,758,000 | | | 1,658,610 | |
RAAC Series Trust, Series
2004-SP1, Class AI3,
6.12%, 03/25/2034(a) | | | 610 | | | 604 | |
Radnor Re Ltd.
| | | | | | | |
Series 2023-1, Class M1A, 7.43% (30 day avg
SOFR US + 2.70%), 07/25/2033(b) | | | 868,049 | | | 877,099 | |
Series 2023-1, Class M1B, 9.08% (30 day avg
SOFR US + 4.35%), 07/25/2033(b) | | | 1,250,000 | | | 1,314,026 | |
RALI Series Trust, Series
2006-QS6, Class 1AV, 0.77%, 06/25/2036(c)(d) | | | 4,300,413 | | | 87,533 | |
RAMP Series Trust, Series
2007-RS1, Class A3,
5.04% (1 mo. Term SOFR + 0.45%), 02/25/2037 | | | 9,723,687 | | | 2,225,259 | |
Residential Accredit Loans, Inc. Series Trust
| | | | | | | |
Series 2006-QS18, Class 1A1, 5.30% (1 mo. Term SOFR + 0.71%), 12/25/2036 | | | 2,035,136 | | | 1,720,947 | |
Series 2008-QR1, Class 2A1, 5.20% (1 mo. Term SOFR + 0.61%), 09/25/2036 | | | 1,289,285 | | | 918,116 | |
Residential Funding Securities Corp., Series 2002-RP1, Class A1, 5.56% (1 mo. Term SOFR + 0.97%), 03/25/2033(b) | | | 321,949 | | | 305,200 | |
SAIF Securitization Trust, Series 2024-CES1, Class A1, 5.97%, 07/25/2054(a)(b) | | | 2,125,472 | | | 2,123,167 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners MBS Total Return Fund
Schedule of Investments
November 30, 2024(Continued)
| | | | | | | | |
NON-AGENCY RESIDENTIAL
MORTGAGE-BACKED SECURITIES — (Continued)
| |
Seasoned Credit Risk Transfer Trust
| | | | | | | |
Series 2018-2, Class BX, 3.40%, 11/25/2057(c) | | | $3,140,067 | | | $1,170,151 | |
Series 2018-2, Class XSIO, 0.07%, 11/25/2057(c)(d) | | | 374,945,954 | | | 1,018,953 | |
SGR Residential Mortgage Trust, Series 2022-2, Class A3, 5.35%, 08/25/2062(b)(c) | | | 818,468 | | | 812,507 | |
Star Trust
| | | | | | | |
Series 2021-SFR1, Class H, 9.17% (1 mo. Term SOFR + 4.56%), 04/17/2038(b) | | | 1,000,000 | | | 971,344 | |
Series 2021-SFR2, Class H, 8.87% (1 mo. Term SOFR + 4.26%), 01/17/2039(b) | | | 746,643 | | | 717,154 | |
Starwood Mortgage Residential Trust
| | | | | | | |
Series 2020-3, Class B2, 4.75%, 04/25/2065(b)(c) | | | 1,460,000 | | | 1,222,783 | |
Series 2020-INV1, Class B2, 4.26%, 11/25/2055(b) | | | 1,000,000 | | | 906,335 | |
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-21, Class 3A1, 4.52%, 11/25/2035(c) | | | 17,451 | | | 16,071 | |
Toorak Mortgage Corp., Series 2024-RRTL2, Class A1, 5.50%, 09/25/2039(a)(b) | | | 2,500,000 | | | 2,487,657 | |
Toorak Mortgage Trust, Series 2024-RRTL1, Class A2, 7.57%, 02/25/2039(a)(b) | | | 1,200,000 | | | 1,224,882 | |
Towd Point Mortgage Trust
| | | | | | | |
Series 2018-6, Class B2, 3.92%, 03/25/2058(b)(c) | | | 2,750,000 | | | 2,304,316 | |
Series 2019-1, Class B2, 1.07%, 03/25/2058(b)(c) | | | 4,000,000 | | | 3,251,639 | |
Series 2019-HY1, Class B3, 6.85% (1 mo. Term SOFR + 2.26%), 10/25/2048(b) | | | 6,170,000 | | | 5,510,220 | |
Series 2019-HY2, Class B2, 6.95% (1 mo. Term SOFR + 2.36%), 05/25/2058(b) | | | 1,000,000 | | | 990,800 | |
Series 2019-HY2, Class B4, 6.95% (1 mo. Term SOFR + 2.36%), 05/25/2058(b) | | | 1,836,000 | | | 1,637,765 | |
| | | | | | | | |
| | | | | | | | |
Series 2019-HY3, Class B1, 6.70% (1 mo. Term SOFR + 2.11%), 10/25/2059(b) | | | $4,704,000 | | | $4,767,630 | |
Series 2019-HY3, Class B2, 6.70% (1 mo. Term SOFR + 2.11%), 10/25/2059(b) | | | 3,320,000 | | | 3,270,203 | |
Series 2019-HY3, Class B3, 6.70% (1 mo. Term SOFR + 2.11%), 10/25/2059(b) | | | 1,106,000 | | | 941,845 | |
Series 2019-HY3, Class B4, 6.70% (1 mo. Term SOFR + 2.11%), 10/25/2059(b) | | | 1,105,000 | | | 1,000,660 | |
Series 2024-CES1, Class A1B, 6.05%, 01/25/2064(b)(c) | | | 624,650 | | | 627,547 | |
Series 2024-CES6, Class A2, 6.00%, 11/25/2064(b)(c)(f) | | | 1,500,000 | | | 1,499,955 | |
UWM Mortgage Trust, Series 2021-INV4, Class B4, 3.22%, 12/25/2051(b)(c) | | | 2,810,847 | | | 2,229,900 | |
Vericrest Opportunity Loan Transferee
| | | | | | | |
Series 2021-CF2, Class A1, 5.49%, 11/27/2051(a)(b) | | | 2,701,444 | | | 2,699,286 | |
Series 2021-NP11, Class A1, 4.87%, 08/25/2051(a)(b) | | | 718,398 | | | 721,147 | |
Series 2021-NPL2, Class A1, 4.89%, 02/27/2051(a)(b) | | | 442,270 | | | 444,640 | |
Series 2021-NPL4, Class A2, 4.95%, 03/27/2051(a)(b)(e) | | | 1,563,019 | | | 1,480,383 | |
Series 2021-NPL6, Class A1, 5.24%, 04/25/2051(a)(b) | | | 1,266,433 | | | 1,267,245 | |
Verus Securitization Trust
| | | | | | | |
Series 2019-INV3, Class B2, 4.79%, 11/25/2059(b)(c) | | | 1,000,000 | | | 984,957 | |
Series 2021-5, Class B2, 3.94%, 09/25/2066(b)(c) | | | 2,000,000 | | | 1,484,930 | |
Series 2021-8, Class B2, 4.33%, 11/25/2066(b)(c) | | | 795,000 | | | 652,678 | |
Series 2021-R3, Class B2, 4.07%, 04/25/2064(b)(c) | | | 3,609,000 | | | 3,217,496 | |
Washington Mutual Mortgage Pass-Through Certificates Series Trust, Series 2007-4, Class 1A5,
7.00%, 06/25/2037 | | | 4,649,328 | | | 2,430,456 | |
TOTAL NON-AGENCY RESIDENTIAL MORTGAGE-BACKED SECURITIES
(Cost $210,314,157) | | | | | | 192,323,488 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners MBS Total Return Fund
Schedule of Investments
November 30, 2024(Continued)
| | | | | | | | |
NON-AGENCY COMMERCIAL
MORTGAGE-BACKED SECURITIES — 24.8%
| |
Atrium Hotel Portfolio Trust, Series 2024-ATRM, Class E, 9.52%, 11/10/2029(b)(c) | | | $3,000,000 | | | $3,030,472 | |
BANK5 Trust, Series 2024-5YR7, Class D,
4.00%, 06/15/2057(b) | | | 3,119,500 | | | 2,712,201 | |
Bayview Commercial Asset Trust
| | | | | | | |
Series 2006-2A, Class M1, 5.17% (1 mo. Term SOFR + 0.58%), 07/25/2036(b) | | | 467,928 | | | 447,578 | |
Series 2006-2A, Class M3, 5.23% (1 mo. Term SOFR + 0.64%), 07/25/2036(b) | | | 676,408 | | | 640,835 | |
Series 2006-3A, Class M1, 5.21% (1 mo. Term SOFR + 0.62%), 10/25/2036(b) | | | 518,572 | | | 496,851 | |
BBCMS Trust
| | | | | | | |
Series 2024-5C25, Class D, 4.00%, 03/15/2057(b) | | | 1,000,000 | | | 874,328 | |
Series 2024-5C27, Class D, 4.00%, 07/15/2057(b) | | | 2,000,000 | | | 1,736,220 | |
Series 2024-5C29, Class E, 4.00%, 09/15/2057(b) | | | 1,500,000 | | | 1,250,958 | |
Benchmark Mortgage Trust
| | | | | | | |
Series 2023-V2, Class D, 4.00%, 05/15/2055(b) | | | 1,500,000 | | | 1,341,644 | |
Series 2024-V9, Class D, 4.50%, 08/15/2057 | | | 1,000,000 | | | 885,705 | |
Blackstone Mortgage Trust, Inc., Series 2021-FL4, Class A, 5.77% (1 mo. Term SOFR + 1.16%), 05/15/2038(b) | | | 3,143,700 | | | 3,041,821 | |
BPR Trust, Series 2023-STON, Class D,
8.13%, 12/05/2039(b)(c) | | | 2,500,000 | | | 2,494,100 | |
BX Trust, Series 2021-ARIA, Class E,
6.97% (1 mo. Term SOFR + 2.36%), 10/15/2036(b) | | | 1,670,000 | | | 1,660,462 | |
BXMT Ltd.
| | | | | | | |
Series 2020-FL2, Class C, 6.37% (1 mo. Term SOFR + 1.76%), 02/15/2038(b) | | | 2,000,000 | | | 1,834,872 | |
Series 2020-FL3, Class A, 6.12% (1 mo. Term SOFR + 1.51%), 11/15/2037(b) | | | 1,065,688 | | | 1,046,561 | |
| | | | | | | | |
| | | | | | | | |
Series 2020-FL3, Class C, 7.27% (1 mo. Term SOFR + 2.66%), 11/15/2037(b) | | | $2,850,000 | | | $2,579,772 | |
CFK Trust, Series 2020-MF2, Class D,
3.35%, 03/15/2039(b) | | | 4,300,000 | | | 3,622,859 | |
Federal Home Loan Mortgage Corp.
| | | | | | | |
Series 2024-MN9, Class B1, 10.73% (30 day avg
SOFR US + 6.00%), 10/25/2044(b) | | | 2,950,000 | | | 3,040,631 | |
Series 2024-MN9, Class M2, 7.98% (30 day avg
SOFR US + 3.25%), 10/25/2044(b) | | | 1,250,000 | | | 1,255,855 | |
Freddie Mac Multi-Family Structured Credit Risk
| | | | | | | |
Series 2021-MN2, Class M2, 8.08% (30 day avg
SOFR US + 3.35%), 07/25/2041(b) | | | 5,000,000 | | | 4,949,925 | |
Series 2021-MN3, Class B1, 11.58% (30 day avg
SOFR US + 6.85%), 11/25/2051(b) | | | 6,063,000 | | | 6,515,768 | |
Granite Point Mortgage Trust, Inc., Series 2021-FL4, Class C,
7.06% (1 mo. Term SOFR + 2.46%), 12/15/2036(b) | | | 3,500,000 | | | 3,305,944 | |
Greystone Commercial Real Estate Ltd., Series 2024-HC3, Class B,
8.24% (1 mo. Term SOFR + 3.63%), 03/15/2041(b) | | | 2,075,000 | | | 2,077,918 | |
Harvest Commercial Capital Loan Trust
| | | | | | | |
Series 2024-1, Class M2, 6.90%, 10/25/2056(c) | | | 1,940,128 | | | 1,957,131 | |
Series 2024-1, Class M3, 7.55%, 10/25/2056(c) | | | 1,234,807 | | | 1,246,153 | |
JP Morgan Chase Commercial Mortgage Securities, Series 2021-NYAH, Class D, 6.51% (1 mo. Term SOFR + 1.90%), 06/15/2038(b) | | | 3,200,000 | | | 2,993,843 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners MBS Total Return Fund
Schedule of Investments
November 30, 2024(Continued)
| | | | | | | | |
NON-AGENCY COMMERCIAL
MORTGAGE-BACKED SECURITIES — (Continued)
| |
Madison Avenue Trust, Series 2015-11MD, Class D, 3.67%, 09/10/2035(b)(c) | | | $2,500,000 | | | $2,356,154 | |
Morgan Stanley ABS Capital I, Inc., Series 2024-BPR2, Class A,
7.29%, 05/05/2029(b) | | | 3,614,181 | | | 3,759,610 | |
Morgan Stanley Capital I Trust, Series 2014-150E, Class A, 3.91%, 09/09/2032(b) | | | 1,150,000 | | | 1,002,344 | |
Multi-Family Connecticut Avenue Securities Trust
| | | | | | | |
Series 2019-01, Class B10, 10.35% (30 day avg
SOFR US + 5.61%), 10/25/2049(b) | | | 2,384,000 | | | 2,426,871 | |
Series 2019-01, Class M10, 8.10% (30 day avg
SOFR US + 3.36%), 10/25/2049(b) | | | 2,120,320 | | | 2,146,836 | |
Series 2023-01, Class B1, 14.48% (30 day avg
SOFR US + 9.75%), 11/25/2053(b) | | | 1,485,000 | | | 1,761,237 | |
Multi-Family Housing Mortgage Loan Trust, Series 2024-FL14, Class D, 9.45% (1 mo.
Term SOFR + 4.84%), 03/19/2039(b) | | | 2,500,000 | | | 2,539,935 | |
Velocity Commercial Capital Loan Trust
| | | | | | | |
Series 2017-2, Class M4, 5.00%, 11/25/2047(b)(c) | | | 2,084,519 | | | 1,847,157 | |
Series 2018-1, Class M5, 6.26%, 04/25/2048(b) | | | 176,719 | | | 164,185 | |
Series 2018-2, Class M3, 4.72%, 10/26/2048(b)(c) | | | 168,133 | | | 148,979 | |
Series 2019-1, Class M5, 5.70%, 03/25/2049(b)(c) | | | 436,213 | | | 375,190 | |
TOTAL NON-AGENCY COMMERCIAL MORTGAGE-BACKED SECURITIES
(Cost $74,460,659) | | | | | | 75,568,905 | |
| | | | | | | | |
| | | | | | | | |
ASSET-BACKED SECURITIES — 8.8%
| |
Apollo Aviation Securitization Equity Trust
| | | | | | | |
Series 2019-2, Class A, 3.38%, 10/16/2039(b) | | | $1,915,145 | | | $1,839,874 | |
Series 2024-1A, Class A2, 6.26%, 05/16/2049(b) | | | 1,101,193 | | | 1,123,535 | |
Foundation Finance Trust, Series 2024-2A, Class C, 5.32%, 03/15/2050(b) | | | 3,000,000 | | | 2,981,296 | |
Labrador Aviation Finance Ltd., Series 2016-1A, Class A1, 4.30%, 01/15/2042(b) | | | 1,657,133 | | | 1,599,222 | |
Pagaya AI Debt Selection Trust, Series 2024-8, Class D, 6.53%, 01/15/2032(b) | | | 2,999,866 | | | 3,008,106 | |
Pioneer Aircraft Finance Ltd., Series 2019-1, Class A, 3.97%, 06/15/2044(b) | | | 2,199,246 | | | 2,069,459 | |
Sabey Data Center Issuer LLC, Series 2023-1, Class A2, 6.25%, 04/20/2048(b) | | | 3,000,000 | | | 3,033,096 | |
SoFi Professional Loan Program LLC, Series 2021-B, Class AFX,
1.14%, 02/15/2047(b) | | | 1,289,854 | | | 1,113,447 | |
Thunderbolt Aircraft Lease, Series 2019-1, Class A, 3.67%, 11/15/2039(b) | | | 2,269,606 | | | 2,137,949 | |
Volofin Finance Designated Activity Co., Series 2024-1A, Class A,
5.94%, 06/15/2037(b) | | | 2,100,000 | | | 2,114,162 | |
Westlake Automobile Receivables Trust, Series 2022-1A, Class D, 3.49%, 03/15/2027(b) | | | 2,375,000 | | | 2,351,466 | |
Wheels Fleet Lease Funding 1 LLC
| | | | | | | |
Series 2023-1A, Class B, 5.80%, 04/18/2038(b) | | | 2,000,000 | | | 2,025,530 | |
Series 2024-2A, Class A1, 4.87%, 06/21/2039(b) | | | 1,400,000 | | | 1,400,505 | |
TOTAL ASSET-BACKED SECURITIES
(Cost $26,547,143) | | | | | | 26,797,647 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners MBS Total Return Fund
Schedule of Investments
November 30, 2024(Continued)
| | | | | | | | |
AGENCY RESIDENTIAL MORTGAGE-
BACKED SECURITIES — 0.8%
| |
FARM Mortgage Trust, Series 2024-2, Class B, 5.60%, 08/01/2054(b)(c) | | | $2,500,000 | | | $2,224,533 | |
Federal National Mortgage Association, Pool 888534, 5.00%, 08/01/2037 | | | 4,331 | | | 4,299 | | | | |
FNMA Grantor Trust
| | | | | | | |
Series 2003-T2, Class A1, 5.13% (30 day avg SOFR US + 0.39%), 03/25/2033 | | | 19,441 | | | 19,263 | |
Series 2004-T3, Class 2A, 5.01%, 08/25/2043(c) | | | 21,261 | | | 21,280 | |
FNMA REMIC Trust
| | | | | | | |
Series 2007-30, Class ZM, 4.25%, 04/25/2037(e) | | | 65,595 | | | 61,548 | |
Series 2007-W8, Class 1A5, 6.55%, 09/25/2037(c) | | | 5,479 | | | 5,385 | |
TOTAL AGENCY RESIDENTIAL MORTGAGE-BACKED SECURITIES
(Cost $2,314,468) | | | | | | 2,336,308 | |
AGENCY COMMERCIAL MORTGAGE-
BACKED SECURITIES - 0.0%(g)
| |
Fannie Mae-Aces, Series
2006-M1, Class IO,
0.23%, 03/25/2036(c)(d) | | | 470,494 | | | 6 | |
Government National Mortgage Association
| | | | | | | |
Series 2002-28, Class IO, 1.11%, 01/16/2042(c)(d) | | | 5,353 | | | 0 | |
Series 2005-23, Class IO, 0.00%, 06/17/2045(c)(d) | | | 104,861 | | | 0 | |
Series 2006-68, Class IO, 0.51%, 05/16/2046(c)(d) | | | 83,415 | | | 3 | |
TOTAL AGENCY COMMERCIAL MORTGAGE-BACKED SECURITIES
(Cost $1,693) | | | | | | 9 | |
| | | | | | | | |
| | | | | | | | |
PRIVATE PLACEMENTS — 0.0%(g)
| |
NewStream Energy Technologies Group, Inc., Convertible Promissory Note(f) | | | 749,058 | | | $0 | |
TOTAL PRIVATE PLACEMENTS
(Cost $749,058) | | | | | | 0 | |
SHORT-TERM INVESTMENTS — 2.9%
| |
Money Market Funds — 2.9%
| |
First American Government Obligations Fund - Class X, 4.56%(h) | | | 8,906,921 | | | 8,906,921 | |
TOTAL SHORT-TERM INVESTMENTS
(Cost $8,906,921) | | | | | | 8,906,921 | |
TOTAL INVESTMENTS — 100.5%
| |
(Cost $323,294,099) | | | | | | 305,933,278 | |
Liabilities in Excess of Other Assets — (0.5)% | | | | | | (1,494,357) | |
TOTAL NET
ASSETS — 100.0% | | | | | | $304,438,921 | |
| | | | | | | | |
Percentages are stated as a percent of net assets.
SOFR - Secured Overnight Financing Rate
(a)
| Step coupon bond. The rate disclosed is as of November 30, 2024.
|
(b)
| Security is exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may only be resold in transactions exempt from registration to qualified institutional investors. As of November 30, 2024, the value of these securities total $272,290,370 or 89.4% of the Fund’s net assets.
|
(c)
| Coupon rate is variable based on the weighted average coupon of the underlying collateral. To the extent the weighted average coupon of the underlying assets which comprise the collateral increases or decreases, the coupon rate of this security will increase or decrease correspondingly. The rate disclosed is as of November 30, 2024.
|
(d)
| Interest only security.
|
(e)
| DL Custom Z Tranche - This security accrues interest which is added to the outstanding principal balance. The interest payment will be deferred until all other tranches in the structure are paid off. The rate disclosed is as of November 30, 2024.
|
(f)
| Fair value determined using significant unobservable inputs in accordance with procedures established by and under the supervision of the Adviser, acting as Valuation Designee. These securities represented $1,499,955 or 0.5% of net assets as of November 30, 2024.
|
(g)
| Represents less than 0.05% of net assets.
|
(h)
| The rate shown represents the 7-day annualized effective yield as of November 30, 2024. |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners Short Duration Fund
Schedule of Investments
November 30, 2024
| | | | | | | | |
NON-AGENCY RESIDENTIAL MORTGAGE-
BACKED SECURITIES — 24.2%
| |
AMSR Trust, Series 2020-SFR4, Class G2,
4.87%, 11/17/2037(a) | | | $2,727,000 | | | $2,697,379 | |
Angel Oak Mortgage Trust
| | | | | | | |
Series 2019-6, Class A1,
2.62%, 11/25/2059(a)(b) | | | 1,235,413 | | | 1,209,947 | |
Series 2021-3, Class M1, 2.48%, 05/25/2066(a)(b) | | | 620,000 | | | 454,030 | |
Series 2023-6, Class A3, 6.50%, 12/25/2067(a)(c) | | | 824,443 | | | 830,889 | |
Bellemeade Re Ltd., Series 2021-3A, Class M1C, 6.28% (30 day avg SOFR US + 1.55%), 09/25/2031(a) | | | 1,725,000 | | | 1,727,592 | |
Bombardier Capital Mortgage Securitization Corp.,
Series 1999-B, Class A3, 7.18%, 12/15/2029(b) | | | 86,567 | | | 6,986 | |
Boston Lending Trust, Series 2021-1, Class M2,
2.00%, 07/25/2061(a)(b)(d)(e) | | | 533,966 | | | 251,328 | |
Brean Asset Backed Securities Trust, Series 2022-RM5, Class A, 4.50%, 09/25/2062(a)(b) | | | 2,160,242 | | | 2,059,738 | |
Chase Mortgage Finance Corp., Series 2021-CL1, Class M2, 6.08% (30 day avg SOFR US + 1.35%), 02/25/2050(a) | | | 1,082,852 | | | 1,041,530 | |
CHNGE Mortgage Trust, Series 2022-NQM1, Class A2,
5.82%, 06/25/2067(a)(c) | | | 988,975 | | | 987,060 | |
Credit Suisse Mortgage Trust, Series 2021-NQM4, Class A1, 1.10%, 05/25/2066(a)(b) | | | 1,280,532 | | | 1,109,403 | |
Credit-Based Asset Servicing and Securitization, Series
2003-CB1, Class AF,
3.95%, 01/25/2033(c) | | | 2 | | | 1 | |
Deephaven Residential Mortgage Trust, Series 2021-3, Class A2, 1.40%, 08/25/2066(a)(b) | | | 1,154,825 | | | 1,010,730 | |
Eagle Re Ltd.
| | | | | | | |
Series 2021-1, Class M1C, 7.43% (30 day avg SOFR US + 2.70%), 10/25/2033(a) | | | 40,945 | | | 41,047 | |
| | | | | | | | |
| | | | | | | | |
Series 2023-1, Class M1A, 6.73% (30 day avg SOFR US + 2.00%), 09/26/2033(a) | | | $663,437 | | | $666,751 | |
Ellington Financial Mortgage Trust, Series 2024-RM2, Class A1A, 5.00%, 07/25/2054(a) | | | 1,392,195 | | | 1,286,050 | |
FIGRE Trust 2023-HE1
| | | | | | | |
Series 2024-HE4, Class A, 5.06%, 09/25/2054(a)(b) | | | 969,496 | | | 971,817 | |
Series 2024-HE5, Class A, 5.44%, 10/25/2054(a)(b) | | | 1,955,857 | | | 1,953,283 | |
GCAT Trust, Series 2023-NQM1, Class A1,
4.25%, 10/25/2057(a)(b) | | | 2,104,261 | | | 1,982,920 | |
Home Re Ltd., Series 2021-1, Class M2, 7.70% (30 day avg SOFR US + 2.96%), 07/25/2033(a) | | | 963,840 | | | 971,263 | |
IMC Home Equity Loan Trust, Series 1998-3, Class A8, 5.43%, 08/20/2029(c) | | | 1,158 | | | 1,157 | |
JP Morgan Mortgage Trust
| | | | | | | |
Series 2014-IVR6, Class 2A4, 6.38%, 07/25/2044(a)(b) | | | 1,085 | | | 1,083 | |
Series 2018-7FRB, Class B3, 6.52%, 04/25/2046(a)(b) | | | 2,325,157 | | | 2,262,635 | |
Series 2019-6, Class B3, 4.26%, 12/25/2049(a)(b) | | | 3,931,950 | | | 3,630,096 | |
Series 2023-HE3, Class A1, 6.36% (30 day avg SOFR US + 1.60%), 05/25/2054(a) | | | 1,032,619 | | | 1,042,849 | |
JP Morgan Wealth Management, Series 2021-CL1, Class M3, 6.53% (30 day avg SOFR US + 1.80%), 03/25/2051(a) | | | 1,054,995 | | | 1,015,217 | |
MFRA Trust
| | | | | | | |
Series 2023-NQM3, Class A2, 7.02%, 07/25/2068(a)(c) | | | 1,957,329 | | | 1,987,291 | |
Series 2024-RTL2, Class A1, 7.25%, 05/25/2029(a)(c) | | | 1,500,000 | | | 1,524,260 | |
Pretium Mortgage Credit Partners LLC
| | | | | | | |
Series 2024-NPL4, Class A1, 7.00%, 07/25/2054(a)(c) | | | 981,475 | | | 990,859 | |
Series 2024-NPL5, Class A1, 5.96%, 09/25/2054(a)(c) | | | 1,503,457 | | | 1,501,681 | |
Progress Residential Trust
| | | | | | | |
Series 2021-SFR1, Class B, 1.30%, 04/17/2038(a) | | | 2,750,000 | | | 2,637,700 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners Short Duration Fund
Schedule of Investments
November 30, 2024(Continued)
| | | | | | | | |
NON-AGENCY RESIDENTIAL MORTGAGE-
BACKED SECURITIES — (Continued)
| |
Series 2022-SFR3, Class E1, 5.20%, 04/17/2039(a) | | | $3,000,000 | | | $2,928,990 | |
PRPM LLC, Series 2024-RCF1, Class A1,
4.00%, 01/25/2054(a)(c) | | | 1,062,407 | | | 1,041,488 | |
Radnor Re Ltd.
| | | | | | | |
Series 2021-1, Class M1C, 7.43% (30 day avg SOFR US + 2.70%), 12/27/2033(a) | | | 646,388 | | | 650,529 | |
Series 2022-1, Class M1A, 8.48% (30 day avg SOFR US + 3.75%), 09/25/2032(a) | | | 939,003 | | | 946,488 | |
Series 2023-1, Class M1A, 7.43% (30 day avg SOFR US + 2.70%), 07/25/2033(a) | | | 868,049 | | | 877,099 | |
RESIDENTIAL MORTGAGE LOAN TRUST, Series 2019-3, Class B1,
3.81%, 09/25/2059(a)(b) | | | 2,750,000 | | | 2,581,938 | |
Rithm Capital Corp., Series
2023-NQM1, Class A2,
7.32%, 10/25/2063(a)(c) | | | 783,746 | | | 797,482 | |
SGR Residential Mortgage Trust, Series 2022-2, Class A3, 5.35%, 08/25/2062(a)(b) | | | 818,468 | | | 812,507 | |
Star Trust, Series 2021-SFR1, Class E, 6.42% (1 mo. Term SOFR + 1.81%),
04/17/2038(a) | | | 3,460,000 | | | 3,397,619 | |
Toorak Mortgage Trust, Series 2024-RRTL1, Class A2, 7.57%, 02/25/2039(a)(c) | | | 1,650,000 | | | 1,684,213 | |
Towd Point HE Trust, Series 2021-HE1, Class M2,
2.50%, 02/25/2063(a)(b) | | | 1,730,000 | | | 1,638,000 | |
Towd Point Mortgage Trust
| | | | | | | |
Series 2019-HY2, Class B2, 6.95% (1 mo. Term SOFR + 2.36%), 05/25/2058(a) | | | 2,000,000 | | | 1,981,600 | |
Series 2024-CES1, Class A1B, 6.05%, 01/25/2064(a)(b) | | | 1,665,734 | | | 1,673,458 | |
Vericrest Opportunity Loan Transferee
| | | | | | | |
Series 2021-CF2, Class A1, 5.49%, 11/27/2051(a)(c) | | | 2,161,155 | | | 2,159,429 | |
Series 2021-NP11, Class A1, 4.87%, 08/25/2051(a)(c) | | | 869,640 | | | 872,968 | |
| | | | | | | | |
| | | | | | | | |
Series 2021-NPL6, Class A1, 5.24%, 04/25/2051(a)(c) | | | $633,081 | | | $633,487 | |
Verus Securitization Trust
| | | | | | | |
Series 2022-4, Class A2, 4.74%, 04/25/2067(a)(b) | | | 1,068,370 | | | 1,026,946 | |
Series 2023-8, Class A3, 6.97%, 12/25/2068(a)(c) | | | 1,882,282 | | | 1,922,344 | |
Vista Point Securitization Trust, Series 2024-CES1, Class A1, 6.68%, 05/25/2054(a)(c) | | | 863,949 | | | 880,293 | |
TOTAL NON-AGENCY RESIDENTIAL MORTGAGE-BACKED SECURITIES
(Cost $66,342,528) | | | | | | 66,361,450 | |
NON-AGENCY COMMERCIAL MORTGAGE-BACKED SECURITIES — 24.1%
| | | | |
BANK5 Trust,
Series 2024-5YR7, Class D, 4.00%, 06/15/2057(a) | | | 1,519,500 | | | 1,321,106 | |
Barclays Commercial Mortgage Securities LLC, Series
2019-BWAY, Class A, 5.68%
(1 mo. Term SOFR + 1.07%), 11/15/2034(a) | | | 1,324,000 | | | 853,993 | |
BBCMS Trust
| | | | | | | |
Series 2024-5C25, Class D, 4.00%, 03/15/2057(a) | | | 1,050,000 | | | 918,044 | |
Series 2024-5C27, Class D, 4.00%, 07/15/2057(a) | | | 1,000,000 | | | 868,110 | |
BDS Ltd., Series 2021-FL7, Class D, 7.07% (1 mo. Term SOFR + 2.46%), 06/16/2036(a) | | | 3,315,000 | | | 3,275,200 | |
Benchmark Mortgage Trust, Series 2023-V2, Class D, 4.00%, 05/15/2055(a) | | | 2,700,000 | | | 2,414,960 | |
Blackstone Mortgage Trust, Inc., Series 2021-FL4, Class A, 5.77% (1 mo. Term SOFR + 1.16%), 05/15/2038(a) | | | 2,888,545 | | | 2,794,935 | |
BX Commercial Mortgage Trust, Series 2021-VOLT, Class F, 7.12% (1 mo. Term SOFR + 2.51%), 09/15/2036(a) | | | 2,500,000 | | | 2,501,723 | |
BX Trust
| | | | | | | |
Series 2021-ARIA, Class E, 6.97% (1 mo. Term SOFR + 2.36%), 10/15/2036(a) | | | 2,330,000 | | | 2,316,692 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners Short Duration Fund
Schedule of Investments
November 30, 2024(Continued)
| | | | | | | | |
NON-AGENCY COMMERCIAL
MORTGAGE-BACKED SECURITIES — (Continued)
| |
Series 2021-LBA, Class DJV, 6.32% (1 mo. Term SOFR + 1.71%), 02/15/2036(a) | | | $3,010,000 | | | $3,000,420 | |
BXMT Ltd.
| | | | | | | |
Series 2020-FL2, Class C, 6.37% (1 mo. Term SOFR + 1.76%), 02/15/2038(a) | | | 3,050,000 | | | 2,798,180 | |
Series 2020-FL3, Class A, 6.12% (1 mo. Term SOFR + 1.51%), 11/15/2037(a) | | | 1,496,062 | | | 1,469,210 | |
Series 2021-FL4, Class C, 6.47% (1 mo. Term SOFR + 1.86%), 05/15/2038(a) | | | 3,000,000 | | | 2,464,971 | |
Series 2021-FL4, Class D, 6.97% (1 mo. Term SOFR + 2.36%), 05/15/2038(a) | | | 3,500,000 | | | 2,672,341 | |
Federal Home Loan Mortgage Corp.
| | | | | | | |
Series 2024-MN9, Class B1, 10.73% (30 day avg SOFR US + 6.00%),
10/25/2044(a) | | | 2,550,000 | | | 2,628,342 | |
Series 2024-MN9, Class M2, 7.98% (30 day avg SOFR US + 3.25%), 10/25/2044(a) | | | 1,000,000 | | | 1,004,684 | |
GPMT Ltd., Series 2021-FL3, Class B, 6.67% (1 mo. Term SOFR + 2.06%),
07/16/2035(a) | | | 1,000,000 | | | 945,006 | |
Granite Point Mortgage Trust, Inc., Series 2021-FL4, Class C, 7.06% (1 mo. Term SOFR + 2.46%), 12/15/2036(a) | | | 2,900,000 | | | 2,739,211 | |
Greystone Commercial Real Estate Ltd.
| | | | | | | |
Series 2021-HC2, Class A, 6.52% (1 mo. Term SOFR + 1.91%), 12/15/2039(a) | | | 2,500,000 | | | 2,501,261 | |
Series 2024-HC3, Class B, 8.24% (1 mo. Term SOFR + 3.63%), 03/15/2041(a) | | | 2,925,000 | | | 2,929,113 | |
Harvest Commercial Capital Loan Trust
| | | | | | | |
Series 2024-1, Class M2, 6.90%, 10/25/2056(b) | | | 2,706,696 | | | 2,730,417 | |
Series 2024-1, Class M3, 7.55%, 10/25/2056(b) | | | 1,728,729 | | | 1,744,614 | |
| | | | | | | | |
| | | | | | | | |
HGI CRE CLO Ltd.
| | | | | | | |
Series 2021-FL1, Class AS, 6.12% (1 mo. Term SOFR + 1.51%), 06/16/2036(a) | | | $934,000 | | | $934,930 | |
Series 2021-FL2, Class D, 6.87% (1 mo. Term SOFR + 2.26%), 09/17/2036(a) | | | 1,500,000 | | | 1,487,747 | |
Series 2021-FL2, Class E, 7.17% (1 mo. Term SOFR + 2.56%), 09/17/2036(a) | | | 2,038,000 | | | 2,001,664 | |
JP Morgan Chase Commercial Mortgage Securities,
Series 2021-NYAH, Class D, 6.51% (1 mo. Term SOFR + 1.90%), 06/15/2038(a) | | | 730,000 | | | 682,970 | |
Lehman Brothers Small Balance Commercial Mortgage Trust, Series 2007-1A, Class M1, 5.20% (1 mo. Term SOFR + 0.61%), 03/25/2037(a) | | | 2,613,180 | | | 2,419,053 | |
Morgan Stanley Capital I Trust, Series 2014-150E, Class A, 3.91%, 09/09/2032(a) | | | 2,000,000 | | | 1,743,208 | |
MULTI-FAMILY CONNECTICUT AVENUE SECURITIES TRUST,
Series 2023-01, Class B1, 14.48% (30 day avg SOFR US + 9.75%), 11/25/2053(a) | | | 665,000 | | | 788,702 | |
Multi-Family Housing Mortgage Loan Trust
| | | | | | | |
Series 2021-FL5, Class D, 7.22% (1 mo. Term SOFR + 2.61%), 07/15/2036(a) | | | 1,000,000 | | | 988,002 | |
Series 2021-FL6, Class C, 6.57% (1 mo. Term SOFR + 1.96%), 07/16/2036(a) | | | 1,300,000 | | | 1,275,653 | |
Series 2021-FL7, Class E, 7.52% (1 mo. Term SOFR + 2.91%), 10/16/2036(a) | | | 1,700,000 | | | 1,606,137 | |
Shelter Growth CRE Issuer Ltd., Series 2023-FL5, Class A, 7.36% (1 mo. Term SOFR + 2.75%), 05/19/2038(a) | | | 1,403,705 | | | 1,410,891 | |
TPG Real Estate Finance Issuer Ltd., Series 2022-FL5, Class AS, 6.76% (1 mo. Term SOFR + 2.15%), 02/15/2039(a) | | | 3,640,000 | | | 3,615,304 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners Short Duration Fund
Schedule of Investments
November 30, 2024(Continued)
| | | | | | | | |
NON-AGENCY COMMERCIAL MORTGAGE-
BACKED SECURITIES — (Continued)
| |
Velocity Commercial Capital Loan Trust
| | | | | | | |
Series 2017-2, Class AFL, 5.75% (1 mo. LIBOR US + 0.90%), 11/25/2047(a)(f) | | | $42,587 | | | $42,390 | |
Series 2019-2, Class M3, 3.48%, 07/25/2049(a)(b) | | | 249,222 | | | 211,940 | |
TOTAL NON-AGENCY COMMERCIAL MORTGAGE-BACKED SECURITIES
(Cost $67,734,023) | | | | | | 66,101,124 | |
ASSET - BACKED SECURITIES — 23.4%
| |
ACHV ABS TRUST,
Series 2023-3PL, Class C, 7.35%, 08/19/2030(a) | | | 3,500,000 | | | 3,522,997 | |
Affirm, Inc., Series 2023-A, Class A, 6.61%, 01/18/2028(a) | | | 2,700,000 | | | 2,705,172 | |
Ally Bank Auto Credit-Linked Notes, Series 2024-B, Class C, 5.22%, 09/15/2032(a) | | | 1,000,000 | | | 1,002,218 | |
American Credit Acceptance Receivables Trust,
Series 2021-4, Class E, 3.12%, 02/14/2028(a) | | | 3,000,000 | | | 2,972,905 | |
BOF URSA Funding Trust,
Series 2024-EDU1, Class A, 6.18% (30 day avg SOFR US + 1.45%), 06/25/2047(a) | | | 2,197,551 | | | 2,205,026 | |
CPS Auto Trust, Series 2022-D, Class D, 8.73%,
01/16/2029(a) | | | 2,000,000 | | | 2,101,249 | |
Exeter Automobile Receivables Trust
| | | | | | | |
Series 2021-3A, Class D, 1.55%, 06/15/2027 | | | 2,790,000 | | | 2,715,229 | |
Series 2021-4A, Class D, 1.96%, 01/17/2028 | | | 2,878,000 | | | 2,827,442 | |
Flagship Credit Auto Trust, Series 2019-3, Class E,
3.84%, 12/15/2026(a) | | | 2,332,847 | | | 2,324,397 | |
Labrador Aviation Finance Ltd., Series 2016-1A, Class A1, 4.30%, 01/15/2042(a) | | | 3,274,692 | | | 3,160,253 | |
Mosaic Solar Loan Trust,
Series 2020-1A, Class B, 3.10%, 04/20/2046(a) | | | 475,531 | | | 409,554 | |
| | | | | | | | |
| | | | | | | | |
Oportun Financial Corp.
| | | | | | | |
Series 2021-A, Class C, 3.44%, 03/08/2028(a) | | | $704,975 | | | $693,389 | |
Series 2021-B, Class B, 1.96%, 05/08/2031(a) | | | 989,479 | | | 958,625 | |
Series 2024-2, Class C, 6.61%, 02/09/2032(a) | | | 1,425,000 | | | 1,435,183 | |
Oxford Finance Funding Trust, Series 2023-1A, Class A2, 6.72%, 02/15/2031(a) | | | 2,166,000 | | | 2,194,537 | |
PagayaAI Debt Selection Trust
| | | | | | | |
Series 2021-HG1, Class A, 1.22%, 01/16/2029(a) | | | 1,364,306 | | | 1,348,312 | |
Series 2022-2, Class B, 6.63%, 01/15/2030(a) | | | 1,918,892 | | | 1,923,757 | |
Series 2022-5, Class B, 10.31%, 06/17/2030(a) | | | 999,963 | | | 1,047,043 | |
Series 2022-6, Class A3, 7.66%, 05/15/2030(a) | | | 2,000,000 | | | 2,010,778 | |
Series 2023-8, Class A, 7.30%, 06/16/2031(a) | | | 1,723,872 | | | 1,754,718 | |
Series 2023-8, Class B, 7.96%, 06/16/2031(a) | | | 3,576,381 | | | 3,651,826 | |
Series 2024-1, Class C, 8.34%, 07/15/2031(a) | | | 3,834,627 | | | 3,915,843 | |
Series 2024-8, Class A, 5.33%, 01/15/2032(a) | | | 1,575,532 | | | 1,582,774 | |
Series 2024-8, Class D, 6.53%, 01/15/2032(a) | | | 2,999,866 | | | 3,008,106 | |
Pioneer Aircraft Finance Ltd.,
Series 2019-1, Class A, 3.97%, 06/15/2044(a) | | | 3,141,780 | | | 2,956,370 | |
Santander Drive Auto Receivables Trust,
Series 2021-3, Class D, 1.33%, 09/15/2027 | | | 1,820,190 | | | 1,793,506 | |
South Carolina Student Loan Corp., Series 2013-1, Class A, 5.35% (30 day avg SOFR US + 0.61%), 01/25/2041 | | | 53,094 | | | 52,460 | |
SpringCastle America LLC,
Series 2020-AA, Class A, 1.97%, 09/25/2037(a) | | | 2,874,256 | | | 2,646,760 | |
Thunderbolt Aircraft Lease,
Series 2019-1, Class A, 3.67%, 11/15/2039(a) | | | 2,811,601 | | | 2,648,504 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners Short Duration Fund
Schedule of Investments
November 30, 2024(Continued)
| | | | | | | | |
ASSET - BACKED SECURITIES — (Continued)
| |
Westlake Automobile Receivables Trust,
Series 2022-1A, Class D, 3.49%, 03/15/2027(a) | | | $2,700,000 | | | $2,673,246 | |
TOTAL ASSET - BACKED SECURITIES
| |
(Cost $63,706,432) | | | | | | 64,242,179 | |
AGENCY RESIDENTIAL MORTGAGE-
BACKED SECURITIES — 16.1%
| |
Connecticut Avenue Securities Trust 2024-R04,
Series 2024-R05, Class 2B1, 6.73% (30 day avg SOFR US + 2.00%), 07/25/2044(a) | | | 2,596,000 | | | 2,616,169 | |
Fannie Mae Connecticut Avenue Securities
| | | | | | | |
Series 2019-R06, Class 2B1, 8.60% (30 day avg SOFR US + 3.86%), 09/25/2039(a) | | | 1,621,158 | | | 1,682,093 | |
Series 2020-SBT1, Class 1M2, 8.50% (30 day avg SOFR US + 3.76%), 02/25/2040(a) | | | 1,983,000 | | | 2,095,234 | |
Series 2021-R01, Class 1B1, 7.83% (30 day avg SOFR US + 3.10%), 10/25/2041(a) | | | 1,150,000 | | | 1,185,938 | |
Series 2021-R01, Class 1M2, 6.28% (30 day avg SOFR US + 1.55%), 10/25/2041(a) | | | 1,626,215 | | | 1,634,863 | |
Series 2021-R02, Class 2M2, 6.73% (30 day avg SOFR US + 2.00%), 11/25/2041(a) | | | 2,000,000 | | | 2,020,159 | |
Series 2022-R01, Class 1M2, 6.63% (30 day avg SOFR US + 1.90%), 12/25/2041(a) | | | 1,300,000 | | | 1,318,030 | |
Series 2023-R01, Class 1M2, 8.48% (30 day avg SOFR US + 3.75%), 12/25/2042(a) | | | 1,000,000 | | | 1,072,928 | |
Series 2023-R03, Class 2M2, 8.63% (30 day avg SOFR US + 3.90%), 04/25/2043(a) | | | 1,460,000 | | | 1,575,285 | |
Series 2023-R04, Class 1M2, 8.28% (30 day avg SOFR US + 3.55%), 05/25/2043(a) | | | 2,750,000 | | | 2,948,297 | |
Series 2024-R01, Class 1B1, 7.43% (30 day avg SOFR US + 2.70%), 01/25/2044(a) | | | 1,200,000 | | | 1,228,478 | |
| | | | | | | | |
| | | | | | | | |
Series 2024-R02, Class 1B1, 7.23% (30 day avg SOFR US + 2.50%), 02/25/2044(a) | | | $2,350,000 | | | $2,406,894 | |
Series 2024-R03, Class 2B1, 7.53% (30 day avg SOFR US + 2.80%), 03/25/2044(a) | | | 1,000,000 | | | 1,015,623 | |
Series 2024-R03, Class 2M2, 6.68% (30 day avg SOFR US + 1.95%), 03/25/2044(a) | | | 1,000,000 | | | 1,011,263 | |
Freddie Mac Structured Agency Credit Risk
| | | | | | | |
Series 2018-SPI2, Class M2, 3.85%, 05/25/2048(a)(b) | | | 29,416 | | | 28,711 | |
Series 2020-HQA5, Class B1, 8.73% (30 day avg SOFR US + 4.00%), 11/25/2050(a) | | | 1,350,000 | | | 1,524,235 | |
Series 2021-DNA2, Class B1, 8.13% (30 day avg SOFR US + 3.40%), 08/25/2033(a) | | | 2,060,000 | | | 2,307,501 | |
Series 2021-DNA2, Class M2, 7.03% (30 day avg SOFR US + 2.30%), 08/25/2033(a) | | | 3,001,569 | | | 3,080,246 | |
Series 2021-DNA6, Class M2, 6.23% (30 day avg SOFR US + 1.50%), 10/25/2041(a) | | | 1,285,000 | | | 1,292,147 | |
Series 2022-DNA1, Class M2, 7.23% (30 day avg SOFR US + 2.50%), 01/25/2042(a) | | | 2,500,000 | | | 2,553,680 | |
Series 2023-HQA2, Class M1A, 6.73% (30 day avg SOFR US + 2.00%), 06/25/2043(a) | | | 1,192,501 | | | 1,204,461 | |
Freddie Mac Structured Agency Credit Risk Debt Notes,
Series 2023-HQA2, Class M2, 8.58% (30 day avg SOFR US + 3.85%), 06/25/2043(a) | | | 1,000,000 | | | 1,071,259 | |
Freddie Mac Structured Agency Credit Risk REMIC Trust
| | | | | | | |
Series 2021-DNA1, Class B1, 7.38% (30 day avg SOFR US + 2.65%), 01/25/2051(a) | | | 1,060,000 | | | 1,125,550 | |
Series 2021-DNA5, Class B1, 7.78% (30 day avg SOFR US + 3.05%), 01/25/2034(a) | | | 2,000,000 | | | 2,155,731 | |
Series 2022-DNA3, Class M1B, 7.63% (30 day avg SOFR US + 2.90%), 04/25/2042(a) | | | 3,000,000 | | | 3,116,870 | |
Series 2022-DNA4, Class M1B, 8.08% (30 day avg SOFR US + 3.35%), 05/25/2042(a) | | | 1,000,000 | | | 1,047,703 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners Short Duration Fund
Schedule of Investments
November 30, 2024(Continued)
| | | | | | | | |
AGENCY RESIDENTIAL MORTGAGE-BACKED SECURITIES — (Continued)
| |
Government National Mortgage Association,
Series 2008-55, Class WT, 5.41%, 06/20/2037(b) | | | $4,914 | | | $4,953 | |
TOTAL AGENCY RESIDENTIAL MORTGAGE-BACKED SECURITIES
(Cost $42,450,463) | | | | | | 44,324,301 | |
COLLATERALIZED LOAN
OBLIGATIONS — 9.9%
| |
BCC Middle Market CLO LLC,
Series 2023-2A, Class A1, 7.12% (3 mo. Term SOFR + 2.50%), 10/21/2035(a) | | | 2,500,000 | | | 2,532,560 | |
Carlyle Global Market Strategies CLO Ltd., Series 2014-5A, Class A1RR, 6.06% (3 mo. Term SOFR + 1.40%),
07/15/2031(a) | | | 1,436,662 | | | 1,439,104 | |
Cent CLO, Series 2022-32A, Class A1R, 6.08% (3 mo. Term SOFR + 1.45%), 07/24/2034(a) | | | 2,860,000 | | | 2,862,954 | |
Crown Point CLO IV Ltd.,
Series 2018-4A, Class A, 5.98% (3 mo. Term SOFR + 1.36%), 04/20/2031(a) | | | 1,268,018 | | | 1,268,957 | |
Deerpath Capital CLO Ltd.,
Series 2023-1A, Class A1, 7.46% (3 mo. Term SOFR + 2.80%), 04/15/2035(a) | | | 3,000,000 | | | 3,021,261 | |
ICG US CLO Ltd., Series
2014-1A, Class A1A2, 6.08%
(3 mo. Term SOFR + 1.46%), 10/20/2034(a) | | | 1,500,000 | | | 1,503,680 | |
KKR CLO 9 Ltd., Series 9, Class AR2, 5.87% (3 mo. Term SOFR + 1.21%), 07/15/2030(a) | | | 236,150 | | | 236,310 | |
LCM LP, Series 39A, Class A1R, 6.00% (3 mo. Term SOFR + 1.34%), 10/15/2034(a) | | | 2,000,000 | | | 2,000,000 | |
Owl Rock CLO Ltd.,
Series 2020-3A, Class AR, 6.47% (3 mo. Term SOFR + 1.85%), 04/20/2036(a) | | | 1,730,000 | | | 1,740,818 | |
| | | | | | | | |
| | | | | | | | |
OZLM VIII Ltd., Series 2014-8A, Class A1R3, 5.89% (3 mo. Term SOFR + 1.24%),
10/17/2029(a) | | | $319,363 | | | $319,520 | |
PennantPark CLO Ltd.,
Series 2021-3A, Class A1, 6.51% (3 mo. Term SOFR + 1.88%), 10/22/2032(a) | | | 2,000,000 | | | 2,001,532 | |
Saranac CLO III Ltd., Series 2014-3A, Class ALR, 6.61% (3 mo. LIBOR US + 1.60%), 06/22/2030(a)(f) | | | 324,921 | | | 325,585 | |
Sound Point CLO Ltd., Series 2018-3A, Class A1AR, 5.92%
(3 mo. Term SOFR + 1.30%), 10/26/2031(a) | | | 907,403 | | | 907,356 | |
Telos CLO Ltd., Series 2013-4A, Class AR, 6.15% (3 mo. Term SOFR + 1.50%),
01/17/2030(a) | | | 140,003 | | | 140,073 | |
THL Credit Lake Shore MM CLO Ltd.
| | | | | | | |
Series 2019-2A, Class A1RR, 6.05% (3 mo. Term SOFR + 1.40%), 10/17/2031(a) | | | 2,287,667 | | | 2,288,456 | |
Series 2021-1A, Class AR, 6.26% (3 mo. Term SOFR + 1.70%), 01/15/2037(a) | | | 4,500,000 | | | 4,513,442 | |
TOTAL COLLATERALIZED LOAN OBLIGATIONS
(Cost $27,090,174) | | | | | | 27,101,608 | |
CORPORATE BONDS — 0.7%
| | | | | | | |
Financial — 0.7%
| | | | | | | |
Korth Direct Mortgage, Inc., 10.00%, 03/25/2025(a)(d) | | | 2,000,000 | | | 1,891,250 | |
TOTAL CORPORATE BONDS
(Cost $1,984,019) | | | | | | 1,891,250 | |
AGENCY COMMERCIAL MORTGAGE-BACKED SECURITIES — 0.0%(g)
| |
Government National Mortgage Association, Series 2009-4, Class IO, 0.39%, 01/16/2049(b)(h) | | | 266,121 | | | 319 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners Short Duration Fund
Schedule of Investments
November 30, 2024(Continued)
| | | | | | | | |
TOTAL AGENCY COMMERCIAL MORTGAGE-BACKED SECURITIES
(Cost $1,593) | | | | | | $319 | |
| | | | | | | | |
| | | | | | | | |
SHORT-TERM INVESTMENTS — 2.0%
| |
Money Market Funds — 2.0%
| | | | | | | |
First American Government Obligations Fund - Class X, 4.56%(i) | | | 5,622,209 | | | 5,622,209 | |
TOTAL SHORT-TERM INVESTMENTS
| |
(Cost $5,622,209) | | | | | | 5,622,209 | |
TOTAL INVESTMENTS — 100.4%
(Cost $274,931,441) | | | | | | 275,644,440 | |
Liabilities in Excess of Other Assets - (0.4)% | | | | | | (1,127,566) | |
TOTAL NET ASSETS — 100.0% | | | | | | $274,516,874 | |
| | | | | | | | |
Percentages are stated as a percent of net assets.
LIBOR - London Interbank Offered Rate
SOFR - Secured Overnight Financing Rate
(a)
| Security is exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These |
securities may only be resold in transactions exempt from registration to qualified institutional investors. As of November 30, 2024, the value of these securities total $258,145,147 or 94.0% of the Fund’s net assets.
(b)
| Coupon rate is variable based on the weighted average coupon of the underlying collateral. To the extent the weighted average coupon of the underlying assets which comprise the collateral increases or decreases, the coupon rate of this security will increase or decrease correspondingly. The rate disclosed is as of November 30, 2024.
|
(c)
| Step coupon bond. The rate disclosed is as of
|
November 30, 2024.
(d)
| Fair value determined using significant unobservable inputs in accordance with procedures established by and under the supervision of the Adviser, acting as Valuation Designee. These securities represented $2,142,578 or 0.8% of net assets as of November 30, 2024. |
(e)
| DL Custom Z Tranche - This security accrues interest which is added to the outstanding principal balance. The interest payment will be deferred until all other tranches in the structure are paid off. The rate disclosed is as of November 30, 2024. |
(f)
| Securities referencing LIBOR are expected to transition to an alternative reference rate by the security’s next scheduled coupon reset date. |
(g)
| Represents less than 0.05% of net assets. |
(h)
| Interest only security. |
(i)
| The rate shown represents the 7-day annualized effective yield as of November 30, 2024. |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
STATEMENT OF ASSETS AND LIABILITIES
at November 30, 2024
| | | | | | | | |
ASSETS
| | | | | | | |
Investments in securities, at value (identified cost $323,294,099 and $274,931,441, respectively) | | | $305,933,278 | | | $275,644,440 | |
Cash | | | 85,126 | | | 33,104 | |
Receivables
| | | | | | | |
Fund shares issued | | | 488,740 | | | 1,441 | |
Interest | | | 966,393 | | | 807,153 | |
Prepaid expenses | | | 30,020 | | | 28,442 | |
Total assets | | | 307,503,557 | | | 276,514,580 | |
LIABILITIES
| | | | | | | |
Payables
| | | | | | | |
Dividends | | | 382,157 | | | 411,516 | |
Investments purchased | | | 2,099,998 | | | 999,984 | |
Fund shares redeemed | | | 217,832 | | | 279,422 | |
Due to Adviser | | | 141,302 | | | 55,001 | |
Administration and fund accounting fees | | | 64,003 | | | 60,403 | |
Sub-transfer agency fees | | | 77,743 | | | 101,686 | |
Transfer agent fees and expenses | | | 16,472 | | | 16,040 | |
12b-1 distribution fees | | | 23,527 | | | 27,852 | |
Audit fees | | | 29,150 | | | 27,499 | |
Custody fees | | | 6,187 | | | 11,617 | |
Chief Compliance Officer fee | | | 2,082 | | | 2,083 | |
Accrued expenses | | | 4,183 | | | 4,603 | |
Total liabilities | | | 3,064,636 | | | 1,997,706 | |
NET ASSETS | | | $ 304,438,921 | | | $274,516,874 | |
CALCULATION OF NET ASSET VALUE PER SHARE
| | | | | | | |
Class A
| | | | | | | |
Net assets applicable to shares outstanding | | | $7,133,977 | | | | |
Shares issued and outstanding [unlimited number of shares (par value $0.01) authorized] | | | 827,510 | | | | |
Net asset value and redemption price per share | | | $8.62 | | | | |
Maximum offering price per share (Net asset value per share divided by 98.00%) | | | $8.80 | | | | |
Investor Class
| | | | | | | |
Net assets applicable to shares outstanding | | | $25,155,464 | | | $27,288,896 | |
Shares issued and outstanding [unlimited number of shares (par value $0.01) authorized] | | | 2,923,612 | | | 2,870,468 | |
Net asset value, offering and redemption price per share | | | $8.60 | | | $9.51 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
STATEMENT OF ASSETS AND LIABILITIES
at November 30, 2024(Continued)
| | | | | | | | |
Institutional Class
| | | | | | | |
Net assets applicable to shares outstanding | | | $272,149,480 | | | $247,227,978 | |
Shares issued and outstanding [unlimited number of shares (par value $0.01) authorized] | | | 31,707,102 | | | 26,024,927 | |
Net asset value, offering and redemption price per share | | | $8.58 | | | $9.50 | |
COMPONENTS OF NET ASSETS
| | | | | | | |
Paid-in capital | | | $750,596,932 | | | $300,327,989 | |
Total accumulated deficit | | | (446,158,011) | | | (25,811,115) | |
Net assets | | | $304,438,921 | | | $274,516,874 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
STATEMENT OF OPERATIONS
For the Year Ended November 30, 2024
| | | | | | | | |
INVESTMENT INCOME
| | | | | | | |
Income
| | | | | | | |
Interest | | | $17,410,133 | | | $20,176,775 | |
Total income | | | 17,410,133 | | | 20,176,775 | |
Expenses
| | | | | | | |
Advisory fees (Note 4) | | | 1,328,050 | | | 1,005,556 | |
Administration and fund accounting fees (Note 4) | | | 290,875 | | | 340,414 | |
Sub-transfer agency expenses (Note 4) | | | 173,434 | | | 248,457 | |
Transfer agent fees and expenses (Note 4) | | | 91,648 | | | 87,002 | |
Registration fees | | | 57,600 | | | 62,192 | |
12b-1 fees - Class A (Note 5) | | | 15,134 | | | — | |
12b-1 fees - Investor Class (Note 5) | | | 40,273 | | | 49,527 | |
Custody fees (Note 4) | | | 29,445 | | | 45,734 | |
Audit fees | | | 28,889 | | | 27,252 | |
Trustees fees and expenses | | | 18,617 | | | 18,618 | |
Chief Compliance Officer fee (Note 4) | | | 12,503 | | | 12,503 | |
Miscellaneous | | | 9,393 | | | 9,327 | |
Legal fees | | | 9,281 | | | 9,429 | |
Shareholder reporting | | | 8,259 | | | 7,983 | |
Insurance expense | | | 5,889 | | | 6,519 | |
Total expenses before interest expense and waiver | | | 2,119,290 | | | 1,930,513 | |
Interest expense (Note 7) | | | 41,970 | | | 3,464 | |
Total expenses before waiver | | | 2,161,260 | | | 1,933,977 | |
Less: Advisory fee waiver (Note 4) | | | (73,492) | | | (157,175) | |
Net expenses | | | 2,087,768 | | | 1,776,802 | |
Net investment income | | | 15,322,365 | | | 18,399,973 | |
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
| | | | | | | |
Net realized gain on investments | | | 1,321,386 | | | 1,122,746 | |
Net change in unrealized appreciation/(depreciation) on investments | | | 15,973,165 | | | 5,403,088 | |
Net realized and unrealized gain on investments | | | 17,294,551 | | | 6,525,834 | |
Net Increase in Net Assets Resulting from Operations | | | $32,616,916 | | | $24,925,807 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
STATEMENTS OF CHANGES IN NET ASSETS
| | | | | |
NET INCREASE/(DECREASE) IN NET ASSETS FROM:
| | | | | | | |
OPERATIONS
| | | | | | | |
Net investment income | | | $15,322,365 | | | $22,676,325 | |
Net realized gain/(loss) from investments | | | 1,321,386 | | | (42,307,390) | |
Net change in unrealized appreciation/(depreciation) on investments | | | 15,973,165 | | | 45,838,236 | |
Net increase in net assets resulting from operations | | | 32,616,916 | | | 26,207,171 | |
DISTRIBUTIONS TO SHAREHOLDERS
| | | | | | | |
Class A | | | (414,745) | | | (360,140) | |
Institutional Class | | | (14,108,283) | | | (22,626,221) | |
Investor Class | | | (1,105,652) | | | (1,326,737) | |
Total distributions to shareholders | | | (15,628,680) | | | (24,313,098) | |
CAPITAL SHARE TRANSACTIONS
| | | | | | | |
Net increase/(decrease) in net assets derived from net change in outstanding shares(a) | | | 90,691,714 | | | (145,624,503) | |
Total increase/(decrease) in net assets | | | 107,679,950 | | | (143,730,430) | |
NET ASSETS
| | | | | | | |
Beginning of year | | | 196,758,971 | | | 340,489,401 | |
End of year | | | $304,438,921 | | | $196,758,971 | |
| | | | | | | | |
(a)
| A summary of share transactions is as follows: |
| | | | | |
Shares sold | | | 408,725 | | | $3,378,255 | | | 140,290 | | | $1,118,583 | |
Shares issued on reinvestments of distributions | | | 47,962 | | | 402,504 | | | 41,962 | | | 334,912 | |
Shares redeemed | | | (169,027) | | | (1,407,123) | | | (224,213) | | | (1,780,860) | |
Net increase/(decrease) | | | 287,660 | | | $2,373,636 | | | (41,961) | | | $(327,365) | |
| | | | | | | | | | | | | | |
| | | | | |
Shares sold | | | 2,498,326 | | | $21,061,190 | | | 1,001,802 | | | $8,038,132 | |
Shares issued on reinvestments of distributions | | | 113,375 | | | 950,860 | | | 143,515 | | | 1,143,477 | |
Shares redeemed | | | (1,326,366) | | | (11,110,506) | | | (1,751,161) | | | (13,961,400) | |
Net increase/(decrease) | | | 1,285,335 | | | $10,901,544 | | | (605,844) | | | $(4,779,791) | |
| | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
STATEMENTS OF CHANGES IN NET ASSETS(Continued)
| | | | | |
Shares sold | | | 27,327,494 | | | $228,034,581 | | | 13,038,096 | | | $104,248,126 | |
Shares issued on reinvestments of distributions | | | 1,158,653 | | | 9,690,423 | | | 1,583,231 | | | 12,590,209 | |
Shares redeemed | | | (19,475,077) | | | (160,308,470) | | | (32,430,788) | | | (257,355,682) | |
Net increase/(decrease) | | | 9,011,070 | | | $77,416,534 | | | (17,809,461) | | | $(140,517,347) | |
| | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
STATEMENTS OF CHANGES IN NET ASSETS
| | | | | |
NET INCREASE/(DECREASE) IN NET ASSETS FROM:
| |
OPERATIONS
| |
Net investment income | | | $18,399,973 | | | $14,311,633 | |
Net realized gain/(loss) from investments | | | 1,122,746 | | | (1,147,162) | |
Capital gain distributons from regulated investment companies | | | — | | | 4 | |
Net change in unrealized appreciation/(depreciation) on investments | | | 5,403,088 | | | 5,885,594 | |
Net increase in net assets resulting from operations | | | 24,925,807 | | | 19,050,069 | |
DISTRIBUTIONS TO SHAREHOLDERS
| |
Investor Class | | | (1,246,542) | | | (972,041) | |
Institutional Class | | | (17,558,338) | | | (13,322,405) | |
Total distributions to shareholders | | | (18,804,880) | | | (14,294,446) | |
CAPITAL SHARE TRANSACTIONS
| | | | | | | |
Net increase in net assets derived from net change in outstanding shares(a) | | | 24,432,002 | | | 41,912,266 | |
Total increase in net assets | | | 30,552,929 | | | 46,667,889 | |
NET ASSETS
| |
Beginning of year | | | 243,963,945 | | | 197,296,056 | |
End of year | | | $ 274,516,874 | | | $ 243,963,945 | |
| | | | | | | | |
(a)
| A summary of share transactions is as follows:
|
| | | | | |
Shares sold | | | 1,783,926 | | | $ 16,843,091 | | | 216,447 | | | $2,002,513 | |
Shares issued on reinvestments of distributions | | | 115,912 | | | 1,094,217 | | | 96,348 | | | 890,349 | |
Shares redeemed | | | (592,598) | | | (5,592,296) | | | (908,071) | | | (8,369,975) | |
Net increase/(decrease) | | | 1,307,240 | | | $ 12,345,012 | | | (595,276) | | | $(5,477,113) | |
| | | | | | | | | | | | | | |
| | | | | |
Shares sold | | | 14,818,270 | | | $139,279,283 | | | 19,401,125 | | | $179,133,536 | |
Shares issued on reinvestments of distributions | | | 1,362,472 | | | 12,838,104 | | | 1,214,318 | | | 11,226,002 | |
Shares redeemed | | | (14,824,693) | | | (140,030,397) | | | (15,464,311) | | | (142,970,159) | |
Net increase | | | 1,356,049 | | | $12,086,990 | | | 5,151,132 | | | $47,389,379 | |
| | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners MBS Total Return Fund - Investor Class
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
| | | | | |
Net asset value, beginning of year | | | $7.93 | | | $7.87 | | | $9.63 | | | $9.07 | | | $10.43 | |
Income from investment operations:
| | | | |
Net investment income^ | | | 0.56 | | | 0.67 | | | 0.38 | | | 0.26 | | | 0.36 | |
Net realized and unrealized gain/(loss) on investments | | | 0.69 | | | 0.11 | | | (1.71) | | | 0.59 | | | (1.33) | |
Total from investment operations | | | 1.25 | | | 0.78 | | | (1.33) | | | 0.85 | | | (0.97) | |
Less distributions:
| |
From net investment income | | | (0.58) | | | (0.72) | | | (0.43) | | | (0.29) | | | (0.39) | |
Total distributions | | | (0.58) | | | (0.72) | | | (0.43) | | | (0.29) | | | (0.39) | |
Net asset value, end of year | | | $8.60 | | | $7.93 | | | $7.87 | | | $9.63 | | | $9.07 | |
Total return | | | 16.15% | | | 10.28% | | | −14.16% | | | 9.46% | | | −9.24% | |
Ratios/supplemental data:
| |
Net assets, end of year (thousands) | | | $25,155 | | | $12,988 | | | $17,668 | | | $54,546 | | | $73,022 | |
Ratio of expenses to average net assets*:
| | | | |
Before waiver | | | 1.20% | | | 1.17% | | | 1.12% | | | 1.05% | | | 1.09% | |
After waiver | | | 1.17% | | | 1.17% | | | 1.12% | | | 1.05% | | | 1.09% | |
Ratio of net investment income to average net assets:
| | | | |
Before waiver | | | 6.68% | | | 8.40% | | | 4.05% | | | 2.77% | | | 3.81% | |
After waiver | | | 6.71% | | | 8.40% | | | 4.05% | | | 2.77% | | | 3.81% | |
Portfolio turnover rate | | | 30% | | | 36% | | | 13% | | | 78% | | | 79% | |
| | | | | | | | | | | | | | | | | |
^
| Based on average shares outstanding. |
*
| Includes interest expense of 0.05% for the year ended November 30, 2022. Includes interest and excise tax expenses of 0.04% for the year ended November 30, 2023. Includes interest expense of 0.02% for the year ended November 30, 2024. |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners MBS Total Return Fund - Institutional Class
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
| | | | | |
Net asset value, beginning of year | | | $7.91 | | | $7.86 | | | $9.61 | | | $9.05 | | | $10.44 | |
Income from investment operations:
| |
Net investment income^ | | | 0.58 | | | 0.69 | | | 0.39 | | | 0.29 | | | 0.38 | |
Net realized and unrealized gain/(loss) on investments | | | 0.69 | | | 0.10 | | | (1.69) | | | 0.59 | | | (1.36) | |
Total from investment operations | | | 1.27 | | | 0.79 | | | (1.30) | | | 0.88 | | | (0.98) | |
Less distributions:
| |
From net investment income | | | (0.60) | | | (0.74) | | | (0.45) | | | (0.32) | | | (0.41) | |
Total distributions | | | (0.60) | | | (0.74) | | | (0.45) | | | (0.32) | | | (0.41) | |
Net asset value, end of year | | | $8.58 | | | $7.91 | | | $7.86 | | | $9.61 | | | $9.05 | |
Total return | | | 16.46% | | | 10.44% | | | −13.87% | | | 9.75% | | | −9.28% | |
Ratios/supplemental data:
| |
Net assets, end of year (thousands) | | | $272,150 | | | $179,483 | | | $318,235 | | | $1,125,605 | | | $1,065,862 | |
Ratio of expenses to average net assets*:
| | | | |
Before waiver | | | 0.95% | | | 0.92% | | | 0.87% | | | 0.80% | | | 0.84% | |
After waiver | | | 0.92% | | | 0.92% | | | 0.87% | | | 0.80% | | | 0.84% | |
Ratio of net investment income to average net assets:
| | | | |
Before waiver | | | 6.91% | | | 8.67% | | | 4.30% | | | 3.02% | | | 4.04% | |
After waiver | | | 6.94% | | | 8.67% | | | 4.30% | | | 3.02% | | | 4.04% | |
Portfolio turnover rate | | | 30% | | | 36% | | | 13% | | | 78% | | | 79% | |
| | | | | | | | | | | | | | | | | |
^
| Based on average shares outstanding. |
*
| Includes interest expense of 0.05% for the year ended November 30, 2022. Includes interest and excise tax expenses of 0.04% for the year ended November 30, 2023. Includes interest expense of 0.02% for the year ended November 30, 2024. |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners MBS Total Return Fund - Class A
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
| | | | | |
Net asset value, beginning of year | | | $7.94 | | | $7.88 | | | $9.64 | | | $9.08 | | | $10.43 | |
Income from investment operations:
| | | | |
Net investment income^ | | | 0.56 | | | 0.66 | | | 0.39 | | | 0.26 | | | 0.36 | |
Net realized and unrealized gain/(loss) on investments | | | 0.70 | | | 0.12 | | | (1.73) | | | 0.59 | | | (1.32) | |
Total from investment operations | | | 1.26 | | | 0.78 | | | (1.34) | | | 0.85 | | | (0.96) | |
Less distributions:
| |
From net investment income | | | (0.58) | | | (0.72) | | | (0.42) | | | (0.29) | | | (0.39) | |
Total distributions | | | (0.58) | | | (0.72) | | | (0.42) | | | (0.29) | | | (0.39) | |
Net asset value, end of year | | | $8.62 | | | $7.94 | | | $7.88 | | | $9.64 | | | $9.08 | |
Total return | | | 16.27% | | | 10.26% | | | −14.15% | | | 9.45% | | | −9.14% | |
Ratios/supplemental data:
| |
Net assets, end of year (thousands) | | | $7,134 | | | $4,288 | | | $4,586 | | | $8,810 | | | $10,256 | |
Ratio of expenses to average net assets*:
| | | | |
Before waiver | | | 1.20% | | | 1.17% | | | 1.12% | | | 1.05% | | | 1.09% | |
After waiver | | | 1.17% | | | 1.17% | | | 1.12% | | | 1.05% | | | 1.09% | |
Ratio of net investment income to average net assets:
| | | | |
Before waiver | | | 6.68% | | | 8.22% | | | 4.05% | | | 2.77% | | | 3.83% | |
After waiver | | | 6.71% | | | 8.22% | | | 4.05% | | | 2.77% | | | 3.83% | |
Portfolio turnover rate | | | 30% | | | 36% | | | 13% | | | 78% | | | 79% | |
| | | | | | | | | | | | | | | | | |
^
| Based on average shares outstanding. |
*
| Includes interest expense of 0.05% for the year ended November 30, 2022. Includes interest and excise tax expenses of 0.04% for the year ended November 30, 2023. Includes interest expense of 0.02% for the year ended November 30, 2024. |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners Short Duration Fund - Investor Class
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
| | | | | |
Net asset value, beginning of year | | | $9.31 | | | $9.11 | | | $9.63 | | | $9.56 | | | $9.89 | |
Income from investment operations:
| | | | |
Net investment income^ | | | 0.58 | | | 0.56 | | | 0.21 | | | 0.14 | | | 0.18 | |
Net realized and unrealized gain/(loss) on investments | | | 0.21 | | | 0.20 | | | (0.48) | | | 0.08 | | | (0.33) | |
Total from investment operations | | | 0.79 | | | 0.76 | | | (0.27) | | | 0.22 | | | (0.15) | |
Less distributions:
| |
From net investment income | | | (0.59) | | | (0.56) | | | (0.25) | | | (0.15) | | | (0.18) | |
Total distributions | | | (0.59) | | | (0.56) | | | (0.25) | | | (0.15) | | | (0.18) | |
Net asset value, end of year | | | $9.51 | | | $9.31 | | | $9.11 | | | $9.63 | | | $9.56 | |
Total return | | | 8.79% | | | 8.57% | | | −2.80% | | | 2.25% | | | −1.43% | |
Ratios/supplemental data:
| |
Net assets, end of year (thousands) | | | $27,289 | | | $14,548 | | | $19,655 | | | $44,379 | | | $60,465 | |
Ratio of expenses to average net assets:
| | | | |
Before fee waiver | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.87% | | | 0.88% | |
After fee waiver | | | 0.85% | | | 0.85% | | | 0.86%* | | | 0.85% | | | 0.85% | |
Ratio of net investment income to average net assets:
| | | | |
Before fee waiver | | | 6.11% | | | 5.97% | | | 2.34% | | | 1.48% | | | 1.87% | |
After fee waiver | | | 6.17% | | | 6.03% | | | 2.39% | | | 1.50% | | | 1.90% | |
Portfolio turnover rate | | | 86% | | | 43% | | | 42% | | | 83% | | | 107% | |
| | | | | | | | | | | | | | | | | |
^
| Based on average shares outstanding. |
*
| Includes interest expense of 0.01%. |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Medalist Partners Short Duration Fund - Institutional Class
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
| | | | | |
Net asset value, beginning of year | | | $9.30 | | | $9.10 | | | $9.63 | | | $9.55 | | | $9.90 | |
Income from investment operations:
| |
Net investment income^ | | | 0.60 | | | 0.58 | | | 0.25 | | | 0.17 | | | 0.20 | |
Net realized and unrealized gain/(loss) on investments | | | 0.22 | | | 0.20 | | | (0.50) | | | 0.08 | | | (0.34) | |
Total from investment operations | | | 0.82 | | | 0.78 | | | (0.25) | | | 0.25 | | | (0.14) | |
Less distributions:
| |
From net investment income | | | (0.62) | | | (0.58) | | | (0.28) | | | (0.17) | | | (0.21) | |
Total distributions | | | (0.62) | | | (0.58) | | | (0.28) | | | (0.17) | | | (0.21) | |
Net asset value, end of year | | | $9.50 | | | $9.30 | | | $9.10 | | | $9.63 | | | $9.55 | |
Total return | | | 9.06% | | | 8.85% | | | −2.66% | | | 2.61% | | | −1.28% | |
Ratios/supplemental data:
| |
Net assets, end of year (thousands) | | | $247,228 | | | $229,416 | | | $177,641 | | | $269,554 | | | $327,719 | |
Ratio of expenses to average net assets:
| | | | |
Before fee waiver | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.62% | | | 0.63% | |
After fee waiver | | | 0.60% | | | 0.60% | | | 0.61%* | | | 0.60% | | | 0.60% | |
Ratio of net investment income to average net assets:
| | | | |
Before fee waiver | | | 6.36% | | | 6.25% | | | 2.59% | | | 1.73% | | | 2.06% | |
After fee waiver | | | 6.42% | | | 6.31% | | | 2.64% | | | 1.75% | | | 2.09% | |
Portfolio turnover rate | | | 86% | | | 43% | | | 42% | | | 83% | | | 107% | |
| | | | | | | | | | | | | | | | | |
^
| Based on average shares outstanding. |
*
| Includes interest expense of 0.01%. |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
NOTES TO FINANCIAL STATEMENTS
at November 30, 2024
NOTE 1 – ORGANIZATION
The Medalist Partners MBS Total Return Fund and the Medalist Partners Short Duration Fund (each a “Fund” and collectively, the “Funds”) are each a diversified series of Advisors Series Trust (the “Trust”), which is registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) as an open-end management investment company. The Funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services – Investment Companies”.
The investment objective of the Medalist Partners MBS Total Return Fund (“Total Return Fund”) is to seek a high level of risk-adjusted current income and capital appreciation. The investment objective of the Medalist Partners Short Duration Fund (“Short Duration Fund”) is to seek a high level of current income that is consistent with preservation of capital. Each Fund currently offers Investor Class shares and Institutional Class shares and the Total Return Fund offers Class A shares. The Total Return Fund Class A shares may be subject to a 2.00% front-end sales load. The Total Return Fund’s Investor Class shares and Institutional Class shares commenced operations on July 22, 2013, and the Class A shares commenced operations on December 18, 2015. The Short Duration Fund’s Investor Class shares and Institutional Class shares commenced operations on December 23, 2010.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Funds. These policies are in conformity with accounting principles generally accepted in the United States of America.
A.
| Security Valuation: All investments in securities are recorded at their estimated fair value, as described in Note 3. |
B.
| Federal Income Taxes: It is the Funds’ policy to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Each Fund will be liable for an excise tax on the amount by which it does not meet the distribution requirements and will accrue an excise tax liability at the time that the liability can be estimated and is probable. |
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. The tax returns of the Funds’ prior three fiscal years are open for examination. Management has reviewed all open tax years in major jurisdictions and concluded that there is no impact on the Funds’ net assets and no tax liability resulting from unrecognized tax events relating to uncertain income tax positions taken or expected to be taken on a tax return. The Funds identify their major tax jurisdictions as U.S. Federal and the state of Wisconsin. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
C.
| Security Transactions, Income and Distributions: Security transactions are accounted for on the trade date. Realized gains and losses on securities sold are calculated on the basis of high amortized cost. Interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are accreted/amortized over the life of the respective security using the effective interest method, except for premiums on certain callable debt securities that are amortized to the earliest call date. Non-cash interest income included in interest income, if any, is recorded at the fair market value of additional par received. Paydown gains and losses on mortgage-related and other asset-backed securities are recorded as components of interest income on the statement of operations. Distributions to shareholders are recorded on the ex-dividend date. |
TABLE OF CONTENTS
NOTES TO FINANCIAL STATEMENTS
at November 30, 2024(Continued)
Investment income, expenses (other than those specific to the class of shares), and realized and unrealized gains and losses on investments are allocated to the separate classes of each Fund based upon their relative net assets on the date income is earned or expensed and realized and unrealized gains and losses are incurred.
Each Fund is charged for those expenses that are directly attributable to the Fund, such as investment advisory, custody and transfer agent fees. Expenses that are not attributable to a Fund are typically allocated among the Funds in proportion to their respective net assets. Common expenses of the Trust are typically allocated among the funds in the Trust based on a fund’s respective net assets, or by other equitable means.
The Funds declare dividends from net investment income daily and distribute the dividends to shareholders monthly. The Funds distribute any realized gains, if any, annually. Distributions from net realized gains for book purposes may include short-term capital gains. All short-term capital gains are included in ordinary income for tax purposes.
The amount of dividends and distributions to shareholders from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations which differ from accounting principles generally accepted in the United States of America. To the extent these book/tax differences are permanent, such amounts are reclassified within the capital accounts based on their Federal tax treatment.
D.
| Restricted Securities: The Funds may invest in securities that are subject to legal or contractual restrictions on resale (“restricted securities”). Restricted securities may be resold in transactions that are exempt from registration under the Federal securities laws. The sale or other disposition of these securities may involve additional expenses and the prompt sale of these securities at an acceptable price may be difficult. At November 30, 2024, the Funds held securities issued pursuant to Rule 144A under the Securities Act of 1933. All Rule 144A securities except for four securities in the Total Return Fund and no securities in the Short Duration Fund have been classified as liquid under the Funds’ liquidity risk management program. At November 30, 2024, the Total Return Fund held $8 or 0.0% in 144A securities classified as illiquid. Other restricted investments held by the Funds at November 30, 2024 are disclosed in the notes to the schedules of investments. |
E.
| Reclassification of Capital Accounts: Accounting principles generally accepted in the United States of America require 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. There were no reclassifications made in the Funds for the year ended November 30, 2024. |
F.
| Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets during the reporting period. Actual results could differ from those estimates. |
G.
| Events Subsequent to the Fiscal Year End: In preparing the financial statements as of November 30, 2024, management considered the impact of subsequent events for potential recognition or disclosure in the financial statements. Management has determined there were no subsequent events that would need to be disclosed in the Funds’ financial statements. |
TABLE OF CONTENTS
NOTES TO FINANCIAL STATEMENTS
at November 30, 2024(Continued)
NOTE 3 – SECURITIES VALUATION
The Funds have adopted authoritative fair value accounting standards which establish an authoritative 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, a discussion in changes in valuation techniques and related inputs during the period and expanded disclosure of valuation levels for major security types. These inputs are summarized in the three broad levels listed below:
Level 1 –
Unadjusted quoted prices in active markets for identical assets or liabilities that each Fund has the ability to access.
Level 2 –
Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 –
Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing each Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
Following is a description of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value on a recurring basis.
Each Fund determines the fair value of its investments and computes its net asset value per share as of the close of regular trading on the New York Stock Exchange (4:00 pm EST).
Market values for fixed income securities are normally determined on the basis of valuations provided by independent pricing services. Each independent pricing service typically values securities based on one or more inputs as described below. Securities that use similar valuation techniques and inputs as described below are categorized as level 2 of the fair value hierarchy. To the extent the significant inputs are unobservable, the values are generally categorized as level 3.
Mortgage- and Asset-Backed Securities: Mortgage- and asset-backed securities are securities issued as separate tranches, or classes, of securities within each deal. These securities are normally valued by independent pricing service providers that use broker-dealer quotations or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows and market-based yield spreads for each tranche, current market data and incorporate deal collateral performance, as available.
U.S. Government Securities: U.S. Government securities are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations.
U.S. Government Agency Securities: U.S. Government agency securities are comprised of two main categories consisting of agency issued debt and mortgage pass-throughs. Agency issued debt securities are generally valued in a manner similar to U.S. Government securities. Mortgage pass-throughs include to-be-announced (“TBAs”) securities and mortgage pass-through certificates. TBA securities and mortgage pass-throughs are generally valued using dealer quotations.
Other Debt Securities: Other debt securities, including corporate and municipal bonds, are valued at their mean prices furnished by an independent pricing service provider using valuation methods that are designed to represent fair value. These valuation methods can include matrix pricing and other
TABLE OF CONTENTS
NOTES TO FINANCIAL STATEMENTS
at November 30, 2024(Continued)
analytical pricing models, market transactions, and dealer-supplied valuations. The pricing service may consider yields or recently executed transactions of investments with comparable quality, type of issue, coupon maturity and rating, market price quotations (where observable), bond spreads, and fundamental data relating to the issuer.
Investment Companies: Investments in open-end mutual funds, including money market funds, are generally priced at their net asset value per share provided by the service agent of the Funds and will be classified in level 1 of the fair value hierarchy.
Short-Term Securities: Short-term debt securities, including those securities having a maturity of 60 days or less, are valued at the evaluated mean between the bid and asked prices. To the extent the inputs are observable and timely, these securities would be classified in level 2 of the fair value hierarchy.
The Board of Trustees (the “Board”) has adopted a valuation policy for use by each Fund and its Valuation Designee (as defined below) in calculating each Fund’s net asset value (“NAV”). Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated the Funds’ investment adviser, Medalist Partners, LP (“Adviser”), as the “Valuation Designee” to perform all of the fair value determinations as well as to perform all of the responsibilities that may be performed by the Valuation Designee in accordance with Rule 2a-5, subject to the Board’s oversight. The Adviser, as Valuation Designee, is authorized to make all necessary determinations of the fair values of portfolio securities and other assets for which market quotations are not readily available or if it is deemed that the prices obtained from brokers and dealers or independent pricing services are unreliable.
Depending on the relative significance of the valuation inputs, fair valued securities may be classified in either level 2 or level 3 of the fair value hierarchy.
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’ securities as of November 30, 2024:
Total Return Fund
| | | | | | | | | | | | | | |
Investments
| | | | | | | | | | | | | |
Non-Agency Residential Mortgage-Backed Securities | | | $— | | | $190,823,533 | | | $1,499,955 | | | $192,323,488 | |
Non-Agency Commercial Mortgage-Backed Securities | | | — | | | 75,568,905 | | | — | | | 75,568,905 | |
Asset-Backed Securities | | | — | | | 26,797,647 | | | — | | | 26,797,647 | |
Agency Residential Mortgage-Backed Securities | | | — | | | 2,336,308 | | | — | | | 2,336,308 | |
Agency Commercial Mortgage-Backed Securities | | | — | | | 9 | | | — | | | 9 | |
Private Placements | | | — | | | — | | | — | | | — | |
Money Market Fund | | | 8,906,921 | | | — | | | — | | | 8,906,921 | |
Total Investments | | | $8,906,921 | | | $295,526,402 | | | $1,499,955 | | | $305,933,278 | |
| | | | | | | | | | | | | | |
TABLE OF CONTENTS
NOTES TO FINANCIAL STATEMENTS
at November 30, 2024(Continued)
Short Duration Fund
| | | | | | | | | | | | | | |
Fixed Income
| | | | | | | | | | | | | |
Non-Agency Residential Mortgage-Backed Securities | | | $ — | | | $66,110,122 | | | $251,328 | | | $66,361,450 | |
Non-Agency Commercial Mortgage-Backed Securities | | | — | | | 66,101,124 | | | — | | | 66,101,124 | |
Asset-Backed Securities | | | — | | | 64,242,179 | | | — | | | 64,242,179 | |
Agency Residential Mortgage-Backed Securities | | | — | | | 44,324,301 | | | — | | | 44,324,301 | |
Collateralized Loan
Obligations | | | — | | | 27,101,608 | | | — | | | 27,101,608 | |
Corporate Bonds | | | — | | | — | | | 1,891,250 | | | 1,891,250 | |
Agency Commercial Mortgage-Backed Securities | | | — | | | 319 | | | — | | | 319 | |
Money Market Fund | | | 5,622,209 | | | — | | | — | | | 5,622,209 | |
Total Investments | | | $5,622,209 | | | $267,879,653 | | | $2,142,578 | | | $275,644,440 | |
| | | | | | | | | | | | | | |
Refer to each Fund’s schedule of investments for a detailed break-out of securities by type.
The following is a reconciliation of the Total Return Fund’s level 3 investments for which significant unobservable inputs were used in determining value.
| | | | | |
Balance as of November 30, 2023 | | | $— | |
Accrued discounts/premiums | | | — | |
Realized gain/(loss) | | | — | |
Change in unrealized appreciation/(depreciation) | | | — | |
Purchases | | | 1,499,955 | |
Sales | | | — | |
Transfers in and/or out of Level 3 | | | — | |
Balance as of November 30, 2024 | | | $1,499,955 | |
| | | | | |
The change in unrealized appreciation/(depreciation) for level 3 securities still held at November 30, 2024, and still classified at level 3 was $0.
The following is a summary of quantitative information about level 3 valued measurements:
| | | | | | | | | | | | | | | | | |
Non-Agency Residential Mortgage-Backed
Securities | | | $1,499,955 | | | Market Transaction Method | | | Prior/Recent Transaction | | | $100.00 | | | Increase | |
| | | | | | | | | | | | | | | | | |
TABLE OF CONTENTS
NOTES TO FINANCIAL STATEMENTS
at November 30, 2024(Continued)
The following is a reconciliation of the Short Duration Fund’s level 3 investments for which significant unobservable inputs were used in determining value.
| | | | | |
Balance as of November 30, 2023 | | | $— | | | $1,891,250 | |
Accrued discounts/premiums | | | — | | | 46,510 | |
Realized gain/(loss) | | | — | | | — | |
Change in unrealized appreciation/(depreciation) | | | — | | | (46,510) | |
Purchases | | | — | | | — | |
Sales | | | — | | | — | |
Transfers in and/or out of Level 3 | | | 251,328 | | | — | |
Balance as of November 30, 2024 | | | $251,328 | | | $1,891,250 | |
| | | | | | | | |
The change in unrealized appreciation/(depreciation) for level 3 securities still held at November 30, 2024, and still classified at level 3 was $(17,209).
The following is a summary of quantitative information about level 3 valued measurements:
| | | | | | | | | | | | | | | | | |
Corporate Bonds | | | $1,891,250 | | | Market Transaction Method | | | Prior/Recent Transaction | | | $94.56 | | | Increase | |
Non-Agency Residential
Mortgage-Backed
Securities | | | $251,328 | | | Market Transaction Method | | | Prior/Recent Transaction | | | $47.07 | | | Increase | |
| | | | | | | | | | | | | | | | | |
The Trust Rule 18f-4 Compliance Policy (“Trust Policy”) governs the use of derivatives by the Funds. The Trust Policy imposes limits on the amount of derivatives a fund can enter into, eliminates the asset segregation framework currently used by a fund to comply with Section 18 of the 1940 Act, treats derivatives as senior securities and requires funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager. Each Fund is considered a limited derivatives user under the Trust Policy and therefore, is required to limit its derivatives exposure to no more than 10% of the Fund’s net assets. For the year ended November 30, 2024, the Funds did not enter into derivatives transactions.
Accounting Pronouncements – In March 2020, FASB issued Accounting Standards Update 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) and in January 2021, FASB issued Accounting Standards Update 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates as of the end of 2021. The temporary relief provided by ASU 2020-04 and ASU 2021-01 is effective for certain reference rate-related contract modifications that occur during the period from March 12, 2020 through December 31, 2022. The Secured Overnight Financing Rate (“SOFR”) is the main replacement for LIBOR in certain financial contracts after June 30, 2023.
In December 2022, FASB 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 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.
TABLE OF CONTENTS
NOTES TO FINANCIAL STATEMENTS
at November 30, 2024(Continued)
In October 2022, the Securities and Exchange Commission adopted a final rule relating to Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements. The rule and form amendments will, among other things, require the Funds to transmit concise and visually engaging shareholder reports that highlight key information. The amendments will require the Funds tag information in a structured data format and that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective January 24, 2023. The Funds have implemented these requirements as of the compliance date of July 24, 2024.
NOTE 4 – INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Adviser provides the Funds with investment management services under an investment advisory agreement. The Adviser furnishes all investment advice, office space, facilities, and provides most of the personnel needed by the Funds. As compensation for its services, each Fund pays the Adviser a monthly management fee. For the Total Return Fund, the fees are calculated at an annual rate of 0.60% of the Fund’s average daily net assets for the first $1.5 billion of assets, 0.55% of the Fund’s average daily net assets for the next $1 billion of assets, and 0.50% of the Fund’s average daily net assets in excess of $2.5 billion. For the Short Duration Fund, the Adviser is entitled to a monthly fee at the annual rate of 0.35% based upon the Fund’s average daily net assets. For the year ended November 30, 2024, the advisory fees incurred by the Funds are disclosed in the statements of operations.
Each Fund is responsible for its own operating expenses. The Adviser has contractually agreed to reduce fees payable to it by each Fund and to pay Fund operating expenses to the extent necessary to limit the aggregate annual operating expenses (excluding acquired fund fees and expenses, interest expense, dividends on securities sold short, taxes, extraordinary expenses, Rule 12b-1 fees, shareholder servicing fees and any other class-specific expenses). The Total Return Fund expenses are limited to 0.90% of the average daily net assets of the Fund and the Short Duration Fund expenses are limited to 0.60% of the average daily net assets of the Fund. Any such reductions made by the Adviser in its fees or payment of expenses which are a Fund’s obligation are subject to reimbursement by the Fund to the Adviser, if so requested by the Adviser, in any subsequent month in the 36-month period from the date of the management fee reduction and expense payment if the aggregate amount actually paid by the Fund toward the operating expenses for such fiscal year (taking into account the reimbursement) will not cause the Fund to exceed the lesser of: (1) the expense limitation in place at the time of the management fee reduction and expense payment; or (2) the expense limitation in place at the time of the reimbursement. Any such reimbursement is also contingent upon Board of Trustees review and approval. Such reimbursement may not be paid prior to each Fund’s payment of current ordinary operating expenses.
During the year ended November 30, 2024, the Adviser reduced its fees and absorbed Fund expenses in the amount of $73,492 and $157,175 in the Total Return Fund and the Short Duration Fund, respectively. No amounts were recouped by the Adviser. Any amount due from the Adviser is paid monthly to each Fund. The expense limitation will remain in effect through at least September 26, 2025 and may be terminated only by the Trust’s Board of Trustees. The Adviser may recapture portions of the amounts shown below no later than the corresponding dates:
| | | | | |
11/30/27 | | | $73,492 | | | 11/30/26 | | | $23,876 | |
| | | $73,492 | | | 11/30/27 | | | 157,175 | |
| | | | | | | | | $181,051 | |
| | | | | | | | | | | |
U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services”), serves as the Funds’ administrator, fund accountant and transfer agent. U.S. Bank N.A. serves as custodian (the “Custodian”) to the Funds. The Custodian is an affiliate of Fund Services. Fund Services maintains the Funds’ books and records, calculates the Funds’ NAV, prepares various federal and state regulatory filings, coordinates the payment of fund expenses, reviews expense accruals and prepares materials supplied to the
TABLE OF CONTENTS
NOTES TO FINANCIAL STATEMENTS
at November 30, 2024(Continued)
Board of Trustees. The officers of the Trust, including the Chief Compliance Officer, are employees of Fund Services. Fees paid by the Funds for administration and accounting, transfer agency, custody and compliance services for the year ended November 30, 2024, are disclosed in the statements of operations.
Quasar Distributors, LLC (“Quasar”) acts as the Funds’ principal underwriter in a continuous public offering of the Funds’ shares. Quasar is a wholly-owned subsidiary of Foreside Financial Group, LLC, doing business as ACA Group.
The Funds have entered into agreements with various brokers, dealers and financial intermediaries to compensate them for transfer agency services that would otherwise be executed by Fund Services. These sub-transfer agency services include pre-processing and quality control of new accounts, maintaining detailed shareholder account records, shareholder correspondence, answering customer inquiries regarding account status, and facilitating shareholder telephone transactions. Sub-transfer agency expenses paid by the Funds for the year ended November 30, 2024 are disclosed in the statements of operations.
NOTE 5 – DISTRIBUTION AGREEMENT AND PLAN
The Funds have adopted a Distribution Plan pursuant to Rule 12b-1 (the “Plan”). The Plan permits the Funds to pay the Distributor for distribution and related expenses at an annual rate of up to 0.25% of the average daily net assets of each Fund’s Investor Class and the Total Return Fund’s Class A. The expenses covered by the Plan may include the cost in connection with the promotion and distribution of shares and the provision of personal services to shareholders, including, but not necessarily limited to, advertising, compensation to underwriters, dealers and selling personnel, the printing and mailing of prospectuses to other than current Fund shareholders, and the printing and mailing of sales literature. Payments made pursuant to the Plan will represent compensation for distribution and service activities, not reimbursements for specific expenses incurred. For the year ended November 30, 2024, the 12b-1 distribution fees incurred by the Funds are disclosed in the statements of operations.
NOTE 6 – PURCHASES AND SALES OF SECURITIES
For the year ended November 30, 2024, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were as follows:
| | | | | | | | |
Total Return Fund | | | $172,776,969 | | | $65,701,491 | | | $2,725 | | | $10,795 | |
Short Duration Fund | | | $262,623,466 | | | $236,156,795 | | | $0 | | | $45,316 | |
| | | | | | | | | | | | | | |
NOTE 7 – LINE OF CREDIT
The Total Return Fund and the Short Duration Fund have a secured line of credit in the amount of $100,000,000, or 20% of the fair value of unencumbered assets of each Fund. The line of credit is intended to provide short-term financing, if necessary, subject to certain restrictions, in connection with shareholder redemptions. The credit facility is with the Funds’ custodian, U.S. Bank N.A. The following table provides information regarding usage of the line of credit during the year ended November 30, 2024. At November 30, 2024, the Funds had no outstanding loan amounts.
| | | | | | | | | | | | | | | | | | | | |
Total Return Fund | | | 35 | | | $5,396,171 | | | 8.00% | | | $41,970 | | | $8,145,000 | | | 7/1/2024 | |
SD Fund | | | 8 | | | $2,021,125 | | | 7.71% | | | $3,464 | | | $6,903,000 | | | 9/10/2024 | |
| | | | | | | | | | | | | | | | | | | | |
TABLE OF CONTENTS
NOTES TO FINANCIAL STATEMENTS
at November 30, 2024(Continued)
NOTE 8 – INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid during the year ended November 30, 2024 and the year ended November 30, 2023 was as follows:
| | | | | | | | |
Ordinary income | | | $15,628,680 | | | $24,313,098 | | | $18,804,880 | | | $14,294,446 | |
| | | | | | | | | | | | | | |
As of November 30, 2024, the components of capital on a tax basis were as follows:
| | | | | | | | |
Cost of investments (a) | | | $323,294,099 | | | $274,931,441 | |
Gross unrealized appreciation | | | 5,095,819 | | | 4,416,429 | |
Gross unrealized depreciation | | | (22,456,640) | | | (3,703,430) | |
Net unrealized appreciation/(depreciation) (a) | | | (17,360,821) | | | 712,999 | |
Undistributed ordinary income | | | 478,516 | | | 436,884 | |
Undistributed long-term capital gain | | | — | | | — | |
Total distributable earnings | | | 478,516 | | | 436,884 | |
Other accumulated gains/(losses) | | | (429,275,706) | | | (26,960,998) | |
Total accumulated earnings/(losses) | | | $(446,158,011) | | | $(25,811,115) | |
| | | | | | | | |
(a)
| The book basis and tax basis cost are the same in the Short Duration Fund. The difference between book basis and tax basis net unrealized depreciation and cost is attributable primarily to wash sales in the Total Return Fund. The difference between book basis and tax basis distributable earnings are primarily due to losses disallowed and recognized on wash sales, capital loss carryforwards, and tax adjustments to dividends payable. |
As of November 30, 2024, the Funds had tax capital losses which may be carried over to offset future gains. Such losses expire as follows:
| | | | | | | | |
Total Return Fund | | | $208,030,766 | | | $220,862,783 | |
Short Duration Fund | | | 19,599,231 | | | 6,950,251 | |
| | | | | | | | |
NOTE 9 – PRINCIPAL RISKS
Below is a summary of some, but not all, of the principal risks of investing in the Funds, each of which may adversely affect a Fund’s net asset value and total return. The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
•
General Market Risk – Economies and financial markets throughout the world are becoming increasingly interconnected, which increases the likelihood that events or conditions in one country or region will adversely impact markets or issuers in other countries or regions. Securities in the Fund’s portfolio may underperform in comparison to securities in general financial markets, a particular financial market or other asset classes due to a number of factors, including: inflation (or expectations for inflation); interest rates; global demand for particular products or resources; natural disasters or events; pandemic diseases; terrorism; regulatory events; and government controls. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors, which has resulted in disruptions to business operations and supply chains, stress on the global healthcare system, growth concerns in the U.S. and overseas, staffing shortages and the inability to meet consumer demand, and widespread
TABLE OF CONTENTS
NOTES TO FINANCIAL STATEMENTS
at November 30, 2024(Continued)
concern and uncertainty. Continuing uncertainties regarding interest rates, rising inflation, political events, rising government debt in the U.S. and trade tensions also contribute to market volatility. Conflict, loss of life and disaster connected to ongoing armed conflict between Ukraine and Russia in Europe and Israel and Hamas in the Middle East could have severe adverse effects on the region, including significant adverse effects on the regional or global economies and the markets for certain securities. The U.S. and the European Union imposed sanctions on certain Russian individuals and companies, including certain financial institutions, and have limited certain exports and imports to and from Russia. The war has contributed to recent market volatility and may continue to do so.
•
Liquidity Risk – Liquidity risk exists when particular investments are difficult to purchase or sell. A Fund’s investments in illiquid securities may reduce the returns of the Fund because it may be difficult to sell the illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may be the result of, among other things, the reduced number and capacity of traditional market participants to make a market in fixed-income securities or the lack of an active market. Liquid investments may become illiquid or less liquid after purchase by a Fund, particularly during periods of market turmoil. Illiquid and relatively less liquid investments may be harder to value, especially in changing markets.
•
Risks Associated with Mortgage-Backed and Other Asset-Backed Securities – In addition to the risks associated with other fixed income securities, mortgage-backed and asset-backed securities are subject to certain other risks. The value of these securities will be influenced by the factors affecting the housing market or the other assets underlying such securities. As a result, during periods of declining asset values, difficult or frozen credit markets, significant changes in interest rates, or deteriorating economic conditions, mortgage-backed and asset-backed securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. The liquidity of these assets may change over time.
•
Residential Mortgage-Backed Securities Risk – RMBS are subject to the risks generally associated with mortgage-backed securities. RMBS may not be backed by the full faith and credit of the U.S. Government and are subject to risk of default on the underlying mortgages. RMBS issued by non-government entities may offer higher yields than those issued by government entities, but also may be subject to greater volatility than government issues. Delinquencies and defaults by borrowers in payments on the underlying mortgages, and the related losses, are affected by general economic conditions, the borrower’s equity in the mortgaged property and the borrower’s financial circumstances.
•
Credit Risk Transfer Securities Risk – Credit risk transfer securities are unguaranteed and unsecured debt securities issued by the government sponsored entity and therefore are not directly linked to or backed by the underlying mortgage loans. As a result, in the event that a government sponsored entity fails to pay principal or interest on its credit risk transfer securities or goes through a bankruptcy, insolvency or similar proceeding, holders of such credit risk transfer securities have no direct recourse to the underlying mortgage loans and will generally receive recovery on par with other unsecured note holders in such a scenario. The risks associated with an investment in credit risk transfer securities are different than the risks associated with an investment in mortgage-backed securities issued by Fannie Mae and Freddie Mac, or other government sponsored entities or issued by a private issuer, because some or all of the mortgage default or credit risk associated with the underlying mortgage loans is transferred to investors. As a result, investors in these securities could lose some or all of their investment in these securities if the underlying mortgage loans default.
•
Privately Issued Mortgage-Related Securities Risk – MBS issued or guaranteed by private issuers is also known as “non-agency MBS”. Privately issued mortgage-backed securities generally offer a higher rate of interest (but greater credit risk) than securities issued by U.S. Government issuers, as there are no direct or indirect governmental guarantees of payment.
TABLE OF CONTENTS
NOTES TO FINANCIAL STATEMENTS
at November 30, 2024(Continued)
The degree of risks will depend significantly on the ability of borrowers to make payments on the underlying mortgages and the seniority of the security held by a Fund with respect to such payments. The market for privately-issued mortgage-backed securities is smaller and less liquid than the market for mortgage-backed securities issued by U.S. government issuers.
•
Sub-Prime Mortgage Risk – The risk that an issuer of a sub-prime mortgage security will default on its payments of interest or principal on a security when due is more pronounced in the case of sub-prime mortgage instruments than more highly ranked securities. Because of this increased risk, these securities may also be less liquid and subject to more pronounced declines in value than more highly rated instruments in times of market stress.
•
High Yield Risk – Fixed income securities that are rated below investment grade (i.e., “junk bonds”) are subject to additional risk factors due to the speculative nature of the securities, such as increased possibility of default liquidation of the security, and changes in value based on public perception of the issuer.
•
Rule 144A Securities Risk – The market for Rule 144A securities typically is less active than the market for publicly-traded securities. Rule 144A securities carry the risk that the liquidity of these securities may become impaired, making it more difficult for a Fund to sell these securities.
NOTE 10 – CONTROL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the 1940 Act. As of November 30, 2024, each Fund’s percentage of control ownership positions greater than 25% are as follows:
| | | | | | | | |
Total Return Fund | | | Charles Schwab & Co., Inc. | | | 34.50% | |
Short Duration Fund | | | Charles Schwab & Co., Inc. | | | 44.40% | |
| | | | | | | | |
NOTE 11 – Report of The FundS’ Special Shareholder Meeting (Unaudited)
At the board meeting held on June 27, 2024, the Board nominated two new Independent Trustees, Anne Kritzmire and Craig Wainscott, as well as one current Independent Trustee, Michele Rackey for election and appointment by shareholders of the Trust. At a special shareholder meeting held on August 27, 2024, shareholders voted to elect and appoint the three nominees as Independent Trustees to the Board. The vote results were as follows:
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610,254,146.13 | | | 422,548,104.53 | | | 69.24% | |
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(1)
| To approve the election of three Trustees to serve until his or her successor is elected and qualified. |
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(01) Craig Wainscott | | | 420,753,222.93 | | | 99.58% | | | 68.95% | | | 1,794,881.60 | | | 0.42% | | | 0.29% | |
(02) Anne Kritzmire | | | 420,814,806.36 | | | 99.59% | | | 68.96% | | | 1,733,298.17 | | | 0.41% | | | 0.28% | |
(3) Michele Rackey | | | 419,476,647.18 | | | 99.27% | | | 68.74% | | | 3,071,457.36 | | | 0.73% | | | 0.50% | |
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Forty percent of the shares of the Trust entitled to vote, present in person or represented by proxy, constitutes a quorum.
The nominees will be elected as Trustees of the Trust if they receive a plurality of the votes cast by all shares of the Trust to be voted in the aggregate.
TABLE OF CONTENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees
Advisors Series Trust and Shareholders of:
Medalist Partners MBS Total Return Fund
Medalist Partners Short Duration Fund
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of the Medalist Partners MBS Total Return Fund (formerly, Semper MBS Total Return Fund) and Medalist Partners Short Duration Fund (formerly, Semper Short Duration Fund) (the “Funds”), each a series of Advisors Series Trust (the “Trust”), including the schedules of investments, as of November 30, 2024, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, and 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 the Funds as of November 30, 2024, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
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 have served as the auditor of one or more of the funds in the Trust since 2003.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of the Funds’ internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits 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 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. Our procedures included confirmation of securities owned as of November 30, 2024 by correspondence with the custodian, private companies, and brokers; when replies from brokers were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
TAIT, WELLER & BAKER LLP
Philadelphia, Pennsylvania
January 29, 2025
| (b) | Financial Highlights are included within the financial statements filed under Item 7 of this Form. |
Item 8. Changes in and Disagreements with Accountants for Open-End Investment Companies.
There were no changes in or disagreements with accountants during the period covered by this report.
Item 9. Proxy Disclosure for Open-End Investment Companies.
See Item 7(a).
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Investment Companies.
See Item 7(a).
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
Not applicable.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 15. 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 16. Controls and Procedures.
| (a) | The Registrant’s Principal Executive Officer and 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, as amended, (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 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 18. Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 19. Exhibits.
(2) Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the registrant’s securities are listed. Not applicable.
(3) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)). Filed herewith.
(4) 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.
(5) Change in the registrant’s independent public accountant. Provide the information called for by Item 4 of Form 8-K under the Exchange Act (17 CFR 249.308). Unless otherwise specified by Item 4, or related to and necessary for a complete understanding of information not previously disclosed, the information should relate to events occurring during the reporting period. Not applicable.
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) | Advisors Series Trust | |
| | By (Signature and Title)* | /s/ Jeffrey T. Rauman | |
| | | Jeffrey T. Rauman, President/Chief Executive Officer/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/ Jeffrey T. Rauman | |
| | | Jeffrey T. Rauman, President/Chief Executive Officer/Principal Executive Officer | |
| | By (Signature and Title)* | /s/ Kevin J. Hayden | |
| | | Kevin J. Hayden, Vice President/Treasurer/Principal Financial Officer | |
* Print the name and title of each signing officer under his or her signature.
