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: 811-10401
Trust for Professional Managers
(Exact name of registrant as specified in charter)
615 East Michigan Street
Milwaukee, WI 53202
(Address of principal executive offices) (Zip code)
Jay S. Fitton
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202
(Name and address of agent for service)
(513) 520-5925
Registrant's telephone number, including area code
Date of fiscal year end: November 30, 2024
Date of reporting period: May 31, 2024
Item 1. Reports to Stockholders.
(a) |
Convergence Long/Short Equity ETF | ||
CLSE (Principal U.S. Listing Exchange: CBOE) | ||
Semi-Annual Shareholder Report | May 31, 2024 |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
Convergence Long/Short Equity ETF | $87 | 1.56% |
Net Assets | $106,141,740 |
Number of Holdings | 358 |
Portfolio Turnover | 133% |
Top 10 Issuers | |
Alphabet, Inc. | 5.1% |
NVIDIA Corp. | 4.6% |
Microsoft Corp. | 3.3% |
Amazon.com, Inc. | 3.1% |
QUALCOMM, Inc. | 2.6% |
Micron Technology, Inc. | 2.2% |
Applied Materials, Inc. | 2.2% |
AppLovin Corp. | 2.1% |
Meta Platforms, Inc. | 2.0% |
Arista Networks, Inc. | 1.9% |
Convergence Long/Short Equity ETF | PAGE 1 | TSR_SAR_89834G760 |
(b) | Not applicable. |
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
Item 6. Investments.
(a) | Schedule of Investments is included as part of the report to shareholders filed under Item 7(a) of this Form. |
(b) | Not Applicable. |
Item 7. Financial Statements and Financial Highlights for Open-End Investment Companies.
(a) |
Page | |||
Shares | Value | ||||||
COMMON STOCKS — 112.3% | |||||||
Accommodation — 0.1% | |||||||
MGM Resorts International(a)(b) | 3,147 | $ 126,415 | |||||
Administrative and Support Services — 3.7% | |||||||
Booking Holdings, Inc.(b) | 97 | 366,306 | |||||
Coinbase Global, Inc. - Class A(a)(b) | 6,131 | 1,385,115 | |||||
ManpowerGroup, Inc.(b) | 3,034 | 226,397 | |||||
NU Holdings Ltd./Cayman Islands - Class A(a)(b) | 49,160 | 584,021 | |||||
PayPal Holdings, Inc.(a)(b) | 14,230 | 896,348 | |||||
Uber Technologies, Inc.(a)(b) | 7,096 | 458,118 | |||||
3,916,305 | |||||||
Air Transportation — 0.6% | |||||||
SkyWest, Inc.(a)(b) | 8,428 | 629,319 | |||||
Ambulatory Health Care Services — 0.8% | |||||||
DaVita, Inc.(a)(b) | 4,240 | 623,789 | |||||
Natera, Inc.(a) | 2,008 | 213,912 | |||||
837,701 | |||||||
Apparel Manufacturing — 0.3% | |||||||
Deckers Outdoor Corp.(a)(b) | 251 | 274,574 | |||||
Beverage and Tobacco Product Manufacturing — 0.8% | |||||||
Altria Group, Inc.(b) | 17,719 | 819,504 | |||||
Broadcasting and Content Providers — 1.0% | |||||||
Spotify Technology SA(a)(b) | 3,562 | 1,057,130 | |||||
Building Material and Garden Equipment and Supplies Dealers — 1.0% | |||||||
Home Depot, Inc.(b) | 3,091 | 1,035,083 | |||||
Chemical Manufacturing — 7.2% | |||||||
AbbVie, Inc.(b) | 5,650 | 911,006 | |||||
Amgen, Inc.(b) | 2,748 | 840,476 | |||||
Eli Lilly & Co.(b) | 1,105 | 906,476 | |||||
Halozyme Therapeutics, Inc.(a)(b) | 18,957 | 839,606 | |||||
Lantheus Holdings, Inc.(a)(b) | 8,674 | 709,793 | |||||
Merck & Co., Inc.(b) | 6,527 | 819,400 | |||||
NewMarket Corp.(b) | 164 | 87,751 | |||||
Organon & Co.(b) | 43,840 | 935,107 | |||||
Pfizer, Inc.(b) | 12,934 | 370,688 | |||||
Procter & Gamble Co.(b) | 4,608 | 758,200 | |||||
Viatris, Inc.(b) | 47,715 | 505,779 | |||||
7,684,282 | |||||||
Clothing, Clothing Accessories, Shoe and Jewelry Retailers — 0.3% | |||||||
Abercrombie & Fitch Co. - Class A(a)(b) | 1,867 | 322,748 | |||||
1 |
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Shares | Value | ||||||
COMMON STOCKS (Continued) | |||||||
Computer and Electronic Product Manufacturing — 17.9% | |||||||
Apple, Inc. | 5,636 | $1,083,521 | |||||
Arista Networks, Inc.(a)(b) | 6,805 | 2,025,508 | |||||
International Business Machines Corp.(b) | 8,100 | 1,351,485 | |||||
Itron, Inc.(a)(b) | 5,200 | 559,260 | |||||
Micron Technology, Inc.(b) | 19,047 | 2,380,875 | |||||
NetApp, Inc.(b) | 16,748 | 2,016,962 | |||||
NVIDIA Corp.(b) | 4,446 | 4,874,283 | |||||
Pure Storage, Inc. - Class A(a)(b) | 6,211 | 374,461 | |||||
QUALCOMM, Inc.(b) | 13,718 | 2,799,158 | |||||
Super Micro Computer, Inc.(a)(b) | 395 | 309,881 | |||||
Vertiv Holdings Co. - Class A(b) | 8,523 | 835,851 | |||||
Western Digital Corp.(a)(b) | 4,981 | 375,020 | |||||
18,986,265 | |||||||
Couriers and Messengers — 0.3% | |||||||
FedEx Corp.(b) | 1,169 | 296,879 | |||||
Credit Intermediation and Related Activities — 4.6% | |||||||
Bank of America Corp.(b) | 21,049 | 841,750 | |||||
Fifth Third Bancorp(b) | 17,953 | 671,801 | |||||
JPMorgan Chase & Co.(b) | 4,736 | 959,656 | |||||
Synchrony Financial(b) | 22,518 | 986,288 | |||||
UMB Financial Corp.(b) | 7,739 | 638,003 | |||||
Wells Fargo & Co.(b) | 12,276 | 735,578 | |||||
4,833,076 | |||||||
Data Processing, Hosting & Related Services — 1.0% | |||||||
Kyndryl Holdings, Inc.(a) | 11,358 | 302,236 | |||||
Pagseguro Digital Ltd. - Class A(a)(b) | 66,306 | 812,249 | |||||
1,114,485 | |||||||
Educational Services — 0.7% | |||||||
Grand Canyon Education, Inc.(a)(b) | 3,901 | 555,737 | |||||
Stride, Inc.(a)(b) | 3,052 | 209,550 | |||||
765,287 | |||||||
Electrical Equipment, Appliance, and Component Manufacturing — 0.9% | |||||||
Powell Industries, Inc.(b) | 2,448 | 440,297 | |||||
Resideo Technologies, Inc.(a)(b) | 24,095 | 520,452 | |||||
960,749 | |||||||
Fabricated Metal Product Manufacturing — 1.3% | |||||||
Griffon Corp.(b) | 10,367 | 700,187 | |||||
Mueller Industries, Inc.(b) | 11,780 | 693,960 | |||||
1,394,147 | |||||||
Food and Beverage Stores — 0.3% | |||||||
Kroger Co.(b) | 5,441 | 284,945 | |||||
2 |
Shares | Value | ||||||
COMMON STOCKS (Continued) | |||||||
Food Manufacturing — 2.9% | |||||||
BellRing Brands, Inc.(a)(b) | 14,210 | $ 826,596 | |||||
Bunge Global SA(b) | 7,267 | 781,856 | |||||
Pilgrim’s Pride Corp.(a)(b) | 21,174 | 760,782 | |||||
Tyson Foods, Inc. - Class A(b) | 12,658 | 724,670 | |||||
3,093,904 | |||||||
Funds, Trusts, and Other Financial Vehicles — 0.5% | |||||||
Garmin Ltd.(b) | 2,355 | 385,866 | |||||
Incyte Corp.(a)(b) | 1,844 | 106,565 | |||||
492,431 | |||||||
General Merchandise Retailers — 1.3% | |||||||
Walmart, Inc.(b) | 20,305 | 1,335,257 | |||||
Heavy and Civil Engineering Construction — 0.6% | |||||||
Sterling Infrastructure, Inc.(a)(b) | 5,571 | 684,509 | |||||
Hospitals — 1.2% | |||||||
Tenet Healthcare Corp.(a)(b) | 5,374 | 726,672 | |||||
Universal Health Services, Inc. - Class B(b) | 2,910 | 552,318 | |||||
1,278,990 | |||||||
Insurance Carriers and Related Activities — 6.0% | |||||||
Allstate Corp.(b) | 3,253 | 544,943 | |||||
Centene Corp.(a)(b) | 8,527 | 610,448 | |||||
CNA Financial Corp.(b) | 10,695 | 491,328 | |||||
Corebridge Financial, Inc.(b) | 32,250 | 940,733 | |||||
F&G Annuities & Life, Inc.(b) | 3,647 | 147,375 | |||||
Frontdoor, Inc.(a)(b) | 17,945 | 634,715 | |||||
HealthEquity, Inc.(a)(b) | 6,563 | 536,066 | |||||
MGIC Investment Corp.(b) | 42,622 | 895,062 | |||||
Progressive Corp.(b) | 1,622 | 342,534 | |||||
Prudential Financial, Inc.(b) | 6,021 | 724,627 | |||||
Reinsurance Group of America, Inc.(b) | 2,524 | 529,535 | |||||
6,397,366 | |||||||
Machinery Manufacturing — 2.7% | |||||||
Applied Materials, Inc.(b) | 10,787 | 2,320,068 | |||||
Caterpillar, Inc.(b) | 1,468 | 496,947 | |||||
2,817,015 | |||||||
Merchant Wholesalers, Durable Goods — 2.8% | |||||||
Core & Main, Inc. - Class A(a)(b) | 9,148 | 526,559 | |||||
GMS, Inc.(a)(b) | 4,934 | 463,598 | |||||
TD SYNNEX Corp.(b) | 15,170 | 1,984,843 | |||||
2,975,000 | |||||||
3 |
Shares | Value | ||||||
COMMON STOCKS (Continued) | |||||||
Merchant Wholesalers, Nondurable Goods — 2.2% | |||||||
Amneal Pharmaceuticals, Inc.(a)(b) | 86,847 | $ 580,138 | |||||
Cencora, Inc.(b) | 2,397 | 543,088 | |||||
Domino’s Pizza, Inc.(b) | 882 | 448,568 | |||||
McKesson Corp.(b) | 1,356 | 772,364 | |||||
2,344,158 | |||||||
Mining (except Oil and Gas) — 1.8% | |||||||
Alpha Metallurgical Resources, Inc.(b) | 1,056 | 333,073 | |||||
Freeport-McMoRan, Inc.(b) | 9,457 | 498,668 | |||||
Knife River Corp.(a)(b) | 8,081 | 571,407 | |||||
Newmont Corp.(b) | 10,967 | 459,956 | |||||
1,863,104 | |||||||
Miscellaneous Manufacturing — 0.8% | |||||||
Johnson & Johnson(b) | 5,987 | 878,113 | |||||
Motor Vehicle and Parts Dealers — 1.6% | |||||||
Carvana Co.(a)(b) | 8,560 | 855,829 | |||||
Murphy USA, Inc.(b) | 2,002 | 878,377 | |||||
1,734,206 | |||||||
Nonmetallic Mineral Product Manufacturing — 0.5% | |||||||
Corning, Inc. | 4,004 | 149,189 | |||||
Eagle Materials, Inc.(b) | 1,671 | 388,324 | |||||
537,513 | |||||||
Nonstore Retailers — 3.4% | |||||||
Amazon.com, Inc.(a)(b) | 18,855 | 3,326,776 | |||||
eBay, Inc.(b) | 4,770 | 258,630 | |||||
3,585,406 | |||||||
Oil and Gas Extraction — 1.5% | |||||||
Marathon Oil Corp.(b) | 27,529 | 797,240 | |||||
SM Energy Co.(b) | 15,666 | 790,036 | |||||
1,587,276 | |||||||
Other Information Services — 2.1% | |||||||
Meta Platforms, Inc. - Class A(b) | 4,465 | 2,084,396 | |||||
Pinterest, Inc. - Class A(a)(b) | 2,381 | 98,788 | |||||
2,183,184 | |||||||
Paper Manufacturing — 1.0% | |||||||
Boise Cascade Co.(b) | 4,388 | 602,429 | |||||
Sylvamo Corp.(b) | 7,179 | 512,006 | |||||
1,114,435 | |||||||
Petroleum and Coal Products Manufacturing — 3.0% | |||||||
Exxon Mobil Corp. | 6,619 | 776,144 | |||||
Marathon Petroleum Corp.(b) | 4,981 | 879,694 | |||||
PBF Energy, Inc. - Class A | 17,390 | 805,679 | |||||
Valero Energy Corp.(b) | 4,712 | 740,444 | |||||
3,201,961 | |||||||
4 |
Shares | Value | ||||||
COMMON STOCKS (Continued) | |||||||
Primary Metal Manufacturing — 0.4% | |||||||
Steel Dynamics, Inc.(b) | 3,110 | $ 416,336 | |||||
Professional, Scientific, and Technical Services — 12.0% | |||||||
Alphabet, Inc. - Class A(a)(b) | 17,144 | 2,957,340 | |||||
Alphabet, Inc. - Class C(a)(b) | 14,429 | 2,510,069 | |||||
AppLovin Corp. - Class A(a)(b) | 27,119 | 2,209,656 | |||||
Booz Allen Hamilton Holding Corp.(b) | 2,200 | 334,862 | |||||
GoDaddy, Inc. - Class A(a)(b) | 10,399 | 1,452,012 | |||||
H&R Block, Inc.(b) | 4,048 | 200,943 | |||||
ICON PLC(a)(b) | 2,615 | 849,404 | |||||
Leidos Holdings, Inc. | 3,616 | 531,733 | |||||
Nutanix, Inc. - Class A(a)(b) | 23,711 | 1,311,574 | |||||
Science Applications International Corp.(b) | 2,910 | 391,832 | |||||
12,749,425 | |||||||
Publishing Industries — 6.9% | |||||||
ACI Worldwide, Inc.(a)(b) | 15,527 | 559,127 | |||||
Appfolio, Inc. - Class A(a)(b) | 931 | 212,566 | |||||
Block, Inc.(a) | 5,580 | 357,566 | |||||
CommVault Systems, Inc.(a)(b) | 4,699 | 505,542 | |||||
Crowdstrike Holdings, Inc. - Class A(a)(b) | 3,984 | 1,249,661 | |||||
DocuSign, Inc.(a)(b) | 17,455 | 955,487 | |||||
Microsoft Corp. | 8,523 | 3,538,153 | |||||
7,378,102 | |||||||
Rail Transportation — 0.5% | |||||||
Union Pacific Corp.(b) | 2,367 | 551,085 | |||||
Rental and Leasing Services — 1.0% | |||||||
Netflix, Inc.(a)(b) | 1,667 | 1,069,580 | |||||
Securities, Commodity Contracts, and Other Financial Investments and Related Activities — 3.8% | |||||||
Affiliated Managers Group, Inc.(b) | 6,096 | 991,210 | |||||
Hims & Hers Health, Inc.(a)(b) | 36,280 | 704,558 | |||||
Janus Henderson Group PLC(b) | 10,694 | 358,249 | |||||
Robinhood Markets, Inc. - Class A(a)(b) | 14,705 | 307,334 | |||||
SEI Investments Co.(b) | 11,678 | 790,717 | |||||
Tradeweb Markets, Inc. - Class A(b) | 6,957 | 758,383 | |||||
Victory Capital Holdings, Inc. - Class A(b) | 1,909 | 99,325 | |||||
4,009,776 | |||||||
Specialty Trade Contractors — 2.1% | |||||||
EMCOR Group, Inc.(b) | 2,163 | 840,672 | |||||
IES Holdings, Inc.(a)(b) | 4,684 | 714,076 | |||||
Installed Building Products, Inc.(b) | 1,453 | 307,803 | |||||
TopBuild Corp.(a)(b) | 885 | 369,886 | |||||
2,232,437 | |||||||
5 |
Shares | Value | ||||||
COMMON STOCKS (Continued) | |||||||
Support Activities for Transportation — 0.4% | |||||||
Brink’s Co.(b) | 4,549 | $469,639 | |||||
Telecommunications — 1.5% | |||||||
AT&T, Inc.(b) | 53,921 | 982,441 | |||||
Doximity, Inc. - Class A(a)(b) | 21,843 | 605,706 | |||||
1,588,147 | |||||||
Transportation Equipment Manufacturing — 1.4% | |||||||
Ford Motor Co.(b) | 57,286 | 694,879 | |||||
General Motors Co.(b) | 15,803 | 710,977 | |||||
Modine Manufacturing Co.(a)(b) | 1,052 | 106,168 | |||||
1,512,024 | |||||||
Utilities — 2.7% | |||||||
Avista Corp.(b) | 8,966 | 331,563 | |||||
Exelon Corp.(b) | 11,300 | 424,315 | |||||
NextEra Energy, Inc.(b) | 7,444 | 595,669 | |||||
NRG Energy, Inc.(b) | 4,152 | 336,312 | |||||
Pinnacle West Capital Corp.(b) | 6,532 | 515,114 | |||||
Vistra Corp.(b) | 7,056 | 699,108 | |||||
2,902,081 | |||||||
Wood Product Manufacturing — 0.9% | |||||||
Builders FirstSource, Inc.(a)(b) | 1,443 | 232,020 | |||||
Owens Corning(b) | 3,761 | 681,004 | |||||
913,024 | |||||||
TOTAL COMMON STOCKS (Cost $107,396,381) | 119,234,378 | ||||||
REAL ESTATE INVESTMENT TRUSTS — 2.2% | |||||||
Real Estate — 1.7% | |||||||
Gaming and Leisure Properties, Inc.(b) | 8,954 | 402,035 | |||||
National Storage Affiliates Trust(b) | 10,701 | 391,442 | |||||
Simon Property Group, Inc.(b) | 2,522 | 381,604 | |||||
STAG Industrial, Inc.(b) | 10,482 | 367,499 | |||||
Tanger, Inc.(b) | 8,827 | 244,949 | |||||
1,787,529 | |||||||
Securities, Commodity Contracts, and Other Financial Investments and Related Activities — 0.5% | |||||||
Innovative Industrial Properties, Inc.(b) | 5,062 | 545,583 | |||||
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $2,245,688) | 2,333,112 | ||||||
6 |
Shares | Value | ||||||
SHORT-TERM INVESTMENTS — 0.1% | |||||||
Money Market Funds — 0.1% | |||||||
First American Government Obligations Fund - Class X, 5.23%(c) | 80,064 | $80,064 | |||||
TOTAL SHORT-TERM INVESTMENTS (Cost $80,064) | 80,064 | ||||||
TOTAL INVESTMENTS — 114.6% (Cost $109,722,133) | 121,647,554 | ||||||
Liabilities in Excess of Other Assets — (14.6)% | (15,505,814) | ||||||
TOTAL NET ASSETS — 100.0% | $106,141,740 | ||||||
(a) | Non-income producing security. |
(b) | All or a portion of security has been pledged as collateral. The total value of assets committed as collateral as of May 31, 2024 is $103,610,384. |
(c) | The rate shown represents the 7-day effective yield as of May 31, 2024. |
7 |
Shares | Value | ||||||
COMMON STOCKS — (47.4)% | |||||||
Accommodation — (0.3)% | |||||||
Penn Entertainment, Inc. | (5,701) | $ (99,767) | |||||
Vail Resorts, Inc. | (1,062) | (200,421) | |||||
(300,188) | |||||||
Administrative and Support Services — (2.1)% | |||||||
ACV Auctions, Inc. - Class A | (6,851) | (122,290) | |||||
Carlyle Group, Inc. | (5,655) | (242,939) | |||||
Concentrix Corp. | (2,804) | (171,969) | |||||
Fair Isaac Corp. | (348) | (448,896) | |||||
Live Nation Entertainment, Inc. | (4,424) | (414,706) | |||||
R1 RCM, Inc. | (27,563) | (354,460) | |||||
RB Global, Inc. | (2,885) | (209,682) | |||||
Shift4 Payments, Inc. - Class A | (4,489) | (302,020) | |||||
(2,266,962) | |||||||
Ambulatory Health Care Services — (0.1)% | |||||||
agilon health, Inc. | (23,228) | (146,336) | |||||
Amusement, Gambling, and Recreation Industries — (0.1)% | |||||||
Planet Fitness, Inc. - Class A | (1,995) | (126,962) | |||||
Apparel Manufacturing — (0.1)% | |||||||
VF Corp. | (11,404) | (151,445) | |||||
Beverage and Tobacco Product Manufacturing — (0.3)% | |||||||
Brown-Forman Corp. - Class B | (5,922) | (271,583) | |||||
Broadcasting and Content Providers — (1.4)% | |||||||
Liberty Broadband Corp. - Class C | (7,478) | (404,485) | |||||
Nexstar Media Group, Inc. - Class A | (1,917) | (317,628) | |||||
Paramount Global - Class B | (35,620) | (424,234) | |||||
Warner Bros Discovery, Inc. | (46,123) | (380,053) | |||||
(1,526,400) | |||||||
Chemical Manufacturing — (3.4)% | |||||||
10X Genomics, Inc. - Class A | (7,843) | (175,840) | |||||
Air Products and Chemicals, Inc. | (879) | (234,429) | |||||
Albemarle Corp. | (2,502) | (306,720) | |||||
Arrowhead Pharmaceuticals, Inc. | (6,357) | (145,893) | |||||
Bio-Techne Corp. | (6,628) | (511,615) | |||||
Bridgebio Pharma, Inc. | (8,191) | (229,430) | |||||
Estee Lauder Cos., Inc. - Class A | (1,831) | (225,872) | |||||
FMC Corp. | (2,866) | (174,683) | |||||
Intellia Therapeutics, Inc. | (6,341) | (135,571) | |||||
Inter Parfums, Inc. | (1,789) | (214,287) | |||||
Kenvue, Inc. | (9,471) | (182,790) | |||||
QuidelOrtho Corp. | (5,674) | (250,734) | |||||
Rogers Corp. | (1,772) | (209,096) | |||||
Zoetis, Inc. | (3,808) | (645,685) | |||||
(3,642,645) | |||||||
8 |
Shares | Value | ||||||
COMMON STOCKS (Continued) | |||||||
Clothing, Clothing Accessories, Shoe and Jewelry Retailers — (0.7)% | |||||||
Boot Barn Holdings, Inc. | (4,180) | $(497,128) | |||||
Foot Locker, Inc. | (8,455) | (234,457) | |||||
(731,585) | |||||||
Computer and Electronic Product Manufacturing — (9.3)% | |||||||
Advanced Energy Industries, Inc. | (1,848) | (198,531) | |||||
Allegro MicroSystems, Inc. | (13,625) | (410,657) | |||||
Bio-Rad Laboratories, Inc. - Class A | (921) | (264,198) | |||||
Bloom Energy Corp. - Class A | (12,912) | (210,724) | |||||
Cognex Corp. | (7,981) | (363,295) | |||||
Danaher Corp. | (803) | (206,210) | |||||
EchoStar Corp. - Class A | (30,148) | (578,842) | |||||
Enphase Energy, Inc. | (612) | (78,275) | |||||
First Solar, Inc. | (1,727) | (469,329) | |||||
GLOBALFOUNDRIES, Inc. | (14,734) | (721,966) | |||||
Intel Corp. | (29,408) | (907,237) | |||||
Kulicke & Soffa Industries, Inc. | (15,698) | (716,928) | |||||
Lumentum Holdings, Inc. | (14,192) | (617,352) | |||||
Masimo Corp. | (1,396) | (173,802) | |||||
Microchip Technology, Inc. | (8,585) | (834,720) | |||||
Palo Alto Networks, Inc. | (1,634) | (481,883) | |||||
Revvity, Inc. | (4,419) | (482,820) | |||||
Texas Instruments, Inc. | (2,424) | (472,704) | |||||
Viasat, Inc. | (21,513) | (363,355) | |||||
Vishay Intertechnology, Inc. | (11,788) | (278,550) | |||||
Wolfspeed, Inc. | (19,329) | (496,755) | |||||
Zebra Technologies Corp. - Class A | (1,752) | (547,220) | |||||
(9,875,353) | |||||||
Construction of Buildings — (0.1)% | |||||||
LGI Homes, Inc. | (1,448) | (139,008) | |||||
Credit Intermediation and Related Activities — (2.5)% | |||||||
Ally Financial, Inc. | (4,839) | (188,576) | |||||
Banc of California, Inc. | (17,105) | (237,075) | |||||
Credit Acceptance Corp. | (418) | (205,167) | |||||
First Citizens BancShares, Inc./NC - Class A | (159) | (270,051) | |||||
FNB Corp./PA | (15,686) | (215,996) | |||||
Pacific Premier Bancorp, Inc. | (9,387) | (208,767) | |||||
PennyMac Financial Services, Inc. | (3,034) | (275,032) | |||||
Seacoast Banking Corp. of Florida | (8,810) | (208,533) | |||||
Truist Financial Corp. | (6,967) | (263,004) | |||||
United Community Banks, Inc./GA | (6,642) | (170,434) | |||||
WaFd, Inc. | (5,682) | (159,153) | |||||
Western Alliance Bancorp | (3,312) | (208,755) | |||||
(2,610,543) | |||||||
9 |
Shares | Value | ||||||
COMMON STOCKS (Continued) | |||||||
Data Processing, Hosting & Related Services — (0.8)% | |||||||
Five9, Inc. | (7,652) | $(357,808) | |||||
Riot Platforms, Inc. | (46,425) | (452,179) | |||||
(809,987) | |||||||
Electrical Equipment, Appliance, and Component Manufacturing — (0.4)% | |||||||
Fluence Energy, Inc. | (8,350) | (209,835) | |||||
Novanta, Inc. | (1,392) | (225,727) | |||||
(435,562) | |||||||
Fabricated Metal Product Manufacturing — (0.4)% | |||||||
Chart Industries, Inc. | (1,692) | (265,695) | |||||
Emerson Electric Co. | (1,690) | (189,550) | |||||
(455,245) | |||||||
Food and Beverage Stores — (0.2)% | |||||||
Grocery Outlet Holding Corp. | (10,066) | (221,351) | |||||
Food Manufacturing — (1.1)% | |||||||
Darling Ingredients, Inc. | (8,859) | (357,903) | |||||
Hershey Co. | (1,330) | (263,114) | |||||
J M Smucker Co. | (2,084) | (232,658) | |||||
Lamb Weston Holdings, Inc. | (3,089) | (272,728) | |||||
(1,126,403) | |||||||
Food Services and Drinking Places — (0.4)% | |||||||
Starbucks Corp. | (4,747) | (380,804) | |||||
Furniture, Home Furnishings, Electronics, and Appliance Retailers — (1.0)% | |||||||
Floor & Decor Holdings, Inc. - Class A | (4,309) | (503,550) | |||||
RH | (1,902) | (517,211) | |||||
(1,020,761) | |||||||
General Merchandise Retailers — (0.7)% | |||||||
Dollar General Corp. | (1,410) | (193,043) | |||||
Dollar Tree, Inc. | (1,959) | (231,064) | |||||
Five Below, Inc. | (2,045) | (282,476) | |||||
(706,583) | |||||||
Heavy and Civil Engineering Construction — (0.1)% | |||||||
Howard Hughes Holdings, Inc. | (1,085) | (71,936) | |||||
Insurance Carriers and Related Activities — (1.0)% | |||||||
Arthur J Gallagher & Co. | (691) | (175,051) | |||||
Kinsale Capital Group, Inc. | (403) | (154,599) | |||||
Lincoln National Corp. | (6,668) | (219,977) | |||||
RenaissanceRe Holdings Ltd. | (1,188) | (270,698) | |||||
Ryan Specialty Holdings, Inc. | (1,123) | (62,360) | |||||
Willis Towers Watson PLC | (668) | (170,534) | |||||
(1,053,219) | |||||||
10 |
Shares | Value | ||||||
COMMON STOCKS (Continued) | |||||||
Leather and Allied Product Manufacturing — (0.2)% | |||||||
Crocs, Inc. | (694) | $(108,014) | |||||
Tapestry, Inc. | (1,865) | (81,109) | |||||
(189,123) | |||||||
Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) — (0.3)% | |||||||
Marathon Digital Holdings, Inc. | (16,989) | (331,625) | |||||
Machinery Manufacturing — (1.7)% | |||||||
Carrier Global Corp. | (4,149) | (262,175) | |||||
Coherent Corp. | (11,007) | (628,060) | |||||
General Electric Co. | (2,123) | (350,592) | |||||
Hayward Holdings, Inc. | (10,998) | (159,361) | |||||
Hillenbrand, Inc. | (5,641) | (262,250) | |||||
Xylem, Inc./NY | (1,244) | (175,429) | |||||
(1,837,867) | |||||||
Management of Companies and Enterprises — (0.5)% | |||||||
Rivian Automotive, Inc. - Class A | (21,669) | (236,626) | |||||
U-Haul Holding Co. | (2,690) | (163,525) | |||||
White Mountains Insurance Group Ltd. | (83) | (149,981) | |||||
(550,132) | |||||||
Merchant Wholesalers, Durable Goods — (0.2)% | |||||||
NEXTracker, Inc. - Class A | (3,331) | (183,771) | |||||
Mining (except Oil and Gas) — (0.6)% | |||||||
Summit Materials, Inc. - Class A | (6,895) | (266,423) | |||||
Uranium Energy Corp. | (30,358) | (216,756) | |||||
Vulcan Materials Co. | (730) | (186,712) | |||||
(669,891) | |||||||
Miscellaneous Manufacturing — (1.7)% | |||||||
Globus Medical, Inc. - Class A | (3,407) | (228,644) | |||||
Inari Medical, Inc. | (3,877) | (193,850) | |||||
Inspire Medical Systems, Inc. | (2,146) | (340,763) | |||||
iRhythm Technologies, Inc. | (2,001) | (176,508) | |||||
Neogen Corp. | (21,912) | (288,143) | |||||
Penumbra, Inc. | (1,384) | (262,226) | |||||
PROCEPT BioRobotics Corp. | (3,323) | (220,647) | |||||
Topgolf Callaway Brands Corp. | (6,804) | (106,483) | |||||
(1,817,264) | |||||||
Motion Picture and Sound Recording Industries — (0.4)% | |||||||
Take-Two Interactive Software, Inc. | (2,680) | (429,765) | |||||
Motor Vehicle and Parts Dealers — (0.8)% | |||||||
Advance Auto Parts, Inc. | (2,562) | (180,980) | |||||
CarMax, Inc. | (4,621) | (324,671) | |||||
11 |
Shares | Value | ||||||
COMMON STOCKS (Continued) | |||||||
Motor Vehicle and Parts Dealers (Continued) | |||||||
Lithia Motors, Inc. | (1,235) | $(312,628) | |||||
Sensata Technologies Holding PLC | (1,595) | (65,905) | |||||
(884,184) | |||||||
Oil and Gas Extraction — (1.0)% | |||||||
Chesapeake Energy Corp. | (1,755) | (159,582) | |||||
Dominion Energy, Inc. | (5,185) | (279,575) | |||||
EQT Corp. | (6,931) | (284,795) | |||||
Northern Oil & Gas, Inc. | (6,798) | (278,242) | |||||
Range Resources Corp. | (2,692) | (99,362) | |||||
(1,101,556) | |||||||
Performing Arts, Spectator Sports, and Related Industries — (0.9)% | |||||||
Caesars Entertainment, Inc. | (4,555) | (161,976) | |||||
Churchill Downs, Inc. | (607) | (78,606) | |||||
Madison Square Garden Sports Corp. | (1,905) | (351,758) | |||||
TEGNA, Inc. | (24,870) | (370,812) | |||||
(963,152) | |||||||
Pipeline Transportation — (0.1)% | |||||||
PNM Resources, Inc. | (2,636) | (101,064) | |||||
Primary Metal Manufacturing — (0.2)% | |||||||
Carpenter Technology Corp. | (1,382) | (153,222) | |||||
Printing and Related Support Activities — (0.1)% | |||||||
Permian Resources Corp. | (8,701) | (142,609) | |||||
Professional, Scientific, and Technical Services — (2.6)% | |||||||
Asana, Inc. - Class A | (29,596) | (386,228) | |||||
Aspen Technology, Inc. | (2,622) | (552,324) | |||||
Charles River Laboratories International, Inc. | (1,205) | (251,170) | |||||
Gen Digital, Inc. | (11,551) | (286,811) | |||||
REVOLUTION Medicines, Inc. | (7,480) | (286,709) | |||||
Sotera Health Co. | (18,416) | (205,891) | |||||
Ubiquiti, Inc. | (2,841) | (406,718) | |||||
Unity Software, Inc. | (19,826) | (362,221) | |||||
(2,738,072) | |||||||
Publishing Industries — (1.7)% | |||||||
Confluent, Inc. - Class A | (14,490) | (376,306) | |||||
Dayforce, Inc. | (1,909) | (94,419) | |||||
MicroStrategy, Inc. - Class A | (233) | (355,206) | |||||
Paycor HCM, Inc. | (9,222) | (114,076) | |||||
Synopsys, Inc. | (849) | (476,119) | |||||
ZoomInfo Technologies, Inc. | (30,975) | (380,373) | |||||
(1,796,499) | |||||||
12 |
Shares | Value | ||||||
COMMON STOCKS (Continued) | |||||||
Real Estate — (0.1)% | |||||||
Marriott Vacations Worldwide Corp. | (1,329) | $(119,969) | |||||
Rental and Leasing Services — (0.3)% | |||||||
Avis Budget Group, Inc. | (1,243) | (141,366) | |||||
FTAI Aviation Ltd. | (2,003) | (168,893) | |||||
(310,259) | |||||||
Repair and Maintenance — (0.3)% | |||||||
Mister Car Wash, Inc. | (12,892) | (90,631) | |||||
Valvoline, Inc. | (5,579) | (226,507) | |||||
(317,138) | |||||||
Securities, Commodity Contracts, and Other Financial Investments and Related Activities — (2.6)% | |||||||
Blackstone, Inc. | (2,701) | (325,470) | |||||
Evercore, Inc. - Class A | (1,187) | (240,890) | |||||
Goldman Sachs Group, Inc. | (676) | (308,608) | |||||
Invesco Ltd. | (5,747) | (90,285) | |||||
MarketAxess Holdings, Inc. | (1,505) | (299,390) | |||||
Moelis & Co. - Class A | (5,487) | (310,619) | |||||
Morgan Stanley | (3,043) | (297,727) | |||||
Nasdaq, Inc. | (3,823) | (225,672) | |||||
New Fortress Energy, Inc. | (9,392) | (238,087) | |||||
Roivant Sciences Ltd. | (16,640) | (172,390) | |||||
XP, Inc. - Class A | (11,528) | (218,917) | |||||
(2,728,055) | |||||||
Social Assistance — (0.3)% | |||||||
IAC, Inc. | (6,898) | (343,451) | |||||
Specialty Trade Contractors — (0.2)% | |||||||
Sunrun, Inc. | (13,700) | (198,102) | |||||
Support Activities for Mining — (0.5)% | |||||||
Gulfport Energy Corp. | (1,693) | (273,944) | |||||
Noble Corp. PLC | (4,877) | (226,586) | |||||
(500,530) | |||||||
Support Activities for Transportation — (0.4)% | |||||||
GATX Corp. | (1,393) | (192,178) | |||||
JB Hunt Transport Services, Inc. | (682) | (109,632) | |||||
Norfolk Southern Corp. | (524) | (117,795) | |||||
(419,605) | |||||||
Telecommunications — (0.3)% | |||||||
Cogent Communications Holdings, Inc. | (5,997) | (355,142) | |||||
13 |
Shares | Value | ||||||
COMMON STOCKS (Continued) | |||||||
Transportation Equipment Manufacturing — (1.2)% | |||||||
Boeing Co. | (3,149) | $(559,294) | |||||
Fox Factory Holding Corp. | (3,568) | (166,340) | |||||
Joby Aviation, Inc. | (12,910) | (62,872) | |||||
Spirit AeroSystems Holdings, Inc. - Class A | (7,148) | (216,727) | |||||
Tesla, Inc. | (1,340) | (238,627) | |||||
(1,243,860) | |||||||
Truck Transportation — (0.3)% | |||||||
Knight-Swift Transportation Holdings, Inc. | (2,944) | (142,048) | |||||
Maplebear, Inc. | (6,120) | (186,538) | |||||
(328,586) | |||||||
Utilities — (1.1)% | |||||||
AES Corp. | (4,819) | (104,042) | |||||
American States Water Co. | (1,281) | (94,269) | |||||
Atmos Energy Corp. | (1,681) | (194,862) | |||||
ONEOK, Inc. | (3,271) | (264,951) | |||||
Sempra | (6,734) | (518,720) | |||||
(1,176,844) | |||||||
Waste Management and Remediation Services — (0.1)% | |||||||
Casella Waste Systems, Inc. - Class A | (1,192) | (119,903) | |||||
Water Transportation — (0.1)% | |||||||
Golden Ocean Group Ltd. | (8,609) | (123,884) | |||||
Wood Product Manufacturing — (0.1)% | |||||||
Louisiana-Pacific Corp. | (1,060) | (97,181) | |||||
TOTAL COMMON STOCKS (Proceeds $51,503,055) | (50,343,166) | ||||||
REAL ESTATE INVESTMENT TRUSTS — (1.9)% | |||||||
Credit Intermediation and Related Activities — (0.3)% | |||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | (8,045) | (267,818) | |||||
Forestry and Logging — (0.1)% | |||||||
PotlatchDeltic Corp. | (2,543) | (108,662) | |||||
Real Estate — (1.3)% | |||||||
Annaly Capital Management, Inc. | (18,936) | (373,039) | |||||
Healthcare Realty Trust, Inc. | (8,838) | (143,441) | |||||
Healthpeak Properties, Inc. | (5,432) | (108,097) | |||||
Independence Realty Trust, Inc. | (10,696) | (178,623) | |||||
Realty Income Corp. | (3,335) | (176,955) | |||||
SITE Centers Corp. | (10,426) | (150,343) | |||||
Sun Communities, Inc. | (1,012) | (119,406) | |||||
Ventas, Inc. | (1,604) | (80,617) | |||||
(1,330,521) | |||||||
14 |
Shares | Value | ||||||
REAL ESTATE INVESTMENT TRUSTS (Continued) | |||||||
Securities, Commodity Contracts, and Other Financial Investments and Related Activities — (0.1)% | |||||||
Americold Realty Trust, Inc. | (4,008) | $(106,893) | |||||
Warehousing and Storage — (0.1)% | |||||||
Extra Space Storage, Inc. | (946) | (136,953) | |||||
TOTAL REAL ESTATE INVESTMENT TRUSTS (Proceeds $1,867,391) | (1,950,847) | ||||||
EXCHANGE TRADED FUNDS — (0.0)%(a) | |||||||
iShares Core S&P 500 ETF | (1) | (530) | |||||
Invesco QQQ Trust Series 1 | (1) | (451) | |||||
TOTAL EXCHANGE TRADED FUNDS (Proceeds $968) | (981) | ||||||
TOTAL SECURITIES SOLD SHORT — (49.3)% (Proceeds $53,371,414) | $(52,294,994) | ||||||
(a) | Represents less than 0.05% of net assets. |
15 |
Assets | ||||
Investments, at value (cost $109,722,133) | $121,647,554 | |||
Receivable for investments sold | 6,108,152 | |||
Deposit for short sales at broker | 33,574,611 | |||
Dividends and interest receivable | 191,440 | |||
Receivable for Fund shares sold | 8,345,680 | |||
Total assets | 169,867,437 | |||
Liabilities | ||||
Securities sold short, at value (proceeds $53,371,414) | 52,294,994 | |||
Payable for investments purchased | 11,325,322 | |||
Dividends payable on short positions | 33,617 | |||
Payable to Adviser | 71,764 | |||
Total liabilities | 63,725,697 | |||
Net Assets | $106,141,740 | |||
Net Assets Consist of: | ||||
Paid-in capital | 92,138,012 | |||
Total distributable earnings | 14,003,728 | |||
Net Assets | $106,141,740 | |||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.001 par value) | 5,087,329 | |||
Net asset value, redemption price and offering price per share | $20.86 |
16 |
Investment Income | ||||
Dividend income | $486,728 | |||
Prime broker interest income | 410,080 | |||
Interest Income | 10,142 | |||
Total Investment Income | 906,950 | |||
Expenses | ||||
Management fees | 278,626 | |||
Dividends on short positions | 176,943 | |||
Other expenses | 500 | |||
Total Expenses | 456,069 | |||
Net Investment Income | 450,881 | |||
Realized and Unrealized Gain (Loss) on Investments | ||||
Net realized gain (loss) from: | ||||
Investments | 1,603,694 | |||
In-kind redemptions | 3,516,032 | |||
Short transactions | (2,635,498) | |||
Change in net unrealized appreciation (depreciation) on: | ||||
Investments | 7,945,574 | |||
Short transactions | 84,408 | |||
Realized and unrealized gain on investments | 10,514,210 | |||
Net Increase in Net Assets from Operations | $10,965,091 | |||
17 |
Convergence Long/Short Equity ETF | |||||||
Six Months Ended May 31, 2024 (Unaudited) | Year Ended November 30, 2023 | ||||||
From Operations | |||||||
Net investment income | $450,881 | $372,285 | |||||
Net realized gain (loss) from: | |||||||
Investments | 1,603,694 | (1,792,565) | |||||
In-kind redemptions | 3,516,032 | 4,103,411 | |||||
Short transactions | (2,635,498) | 1,128,853 | |||||
Change in net unrealized appreciation (depreciation) on: | |||||||
Investments | 7,945,574 | 565,669 | |||||
Short transactions | 84,408 | (1,480,089) | |||||
Net increase in net assets from operations | 10,965,091 | 2,897,564 | |||||
From Distributions | |||||||
Net dividend and distributions | (389,482) | (194,639) | |||||
Net decrease in net assets resulting from distributions paid | (389,482) | (194,639) | |||||
From Capital Share Transactions | |||||||
Proceeds from shares sold | 77,013,636 | 23,548,901 | |||||
Net asset value of shares issued in reinvestment of distributions to shareholders | — | — | |||||
Payments for shares redeemed | (13,289,473) | (18,785,490) | |||||
Payments for transaction fees (Note 8) | 798 | 46 | |||||
Net increase in net assets from capital share transactions | 63,724,961 | 4,763,457 | |||||
Total Increase In Net Assets | 74,300,570 | 7,466,382 | |||||
Net Assets | |||||||
Beginning of period | 31,841,170 | 24,374,788 | |||||
End of period | $106,141,740 | $31,841,170 | |||||
18 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net decrease in net assets resulting from operations | $10,965,091 | |||
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: | ||||
Purchases of investments | (177,751,169) | |||
Purchases of short-term investments, net | 464,364 | |||
Proceeds from sales of long-term investments | 106,160,783 | |||
Return of capital distributions received from underlying investments | 57,737 | |||
Increase in dividends and interest receivable | (131,505) | |||
Increase in receivable for investment securities sold | (5,453,072) | |||
Proceeds from securities sold short | 88,216,738 | |||
Purchases to cover securities sold short | (53,625,782) | |||
Increase in payable for investment securities purchased | 10,290,657 | |||
Increase in dividends payable on short positions | 13,438 | |||
Increase in payable to Adviser | 49,323 | |||
Unrealized depreciation on investments | (7,945,574) | |||
Unrealized depreciation on short transactions | (84,408) | |||
Net realized gain on investments | (5,119,726) | |||
Net realized gain on short transactions | 2,635,498 | |||
Net cash provided by operating activities | (31,257,607) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from shares sold | 69,008,992 | |||
Payment on shares redeemed | (13,289,473) | |||
Proceeds from transaction fees | 798 | |||
Cash distributions paid to shareholders | (389,482) | |||
Net cash used in financing activities | 55,330,835 | |||
Net change in cash | 24,073,228 | |||
CASH: | ||||
Beginning balance | 9,501,383 | |||
Ending balance | $33,574,611 | |||
SUPPLEMENTAL DISCLOSURES: | ||||
Cash paid for interest | 297,457 | |||
Non-cash operating activities - purchases of investment securities in-kind | (13,216,772) | |||
Non-cash operating activities - sales of investment securities in-kind | 82,453,948 | |||
Non-cash financing activities - proceeds from shares sold in-kind | (13,216,772) | |||
Non-cash financing activities - payment on shares redeemed in-kind | 82,453,948 | |||
RESTRICTED AND UNRESTRICTED CASH | ||||
Beginning balances | ||||
Cash | — | |||
Deposit with brokers short sale proceeds | 9,501,383 | |||
Ending balances | ||||
Cash | — | |||
Deposit with brokers short sale proceeds | 33,574,611 | |||
19 |
Six months ended May 31, 2024 (Unaudited) | Year ended November 30, | ||||||||||||||||||
2023 | 2022(6) | 2021 | 2020 | 2019 | |||||||||||||||
Net asset value, beginning of year/period | $17.05 | $15.45 | $17.94 | $14.03 | $19.76 | $19.83 | |||||||||||||
Income from investment operations: | |||||||||||||||||||
Net investment income (loss)(1) | 0.15 | 0.23 | 0.07 | (0.03) | 0.01 | 0.14 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 3.86 | 1.49 | 0.31 | 3.98 | (1.11) | 0.65 | |||||||||||||
Total from investment operations | 4.01 | 1.72 | 0.38 | 3.95 | (1.10) | 0.79 | |||||||||||||
Less distributions paid: | |||||||||||||||||||
From net investment income | (0.20) | (0.12) | — | (0.04) | (0.13) | (0.07) | |||||||||||||
From net realized gains | — | — | (2.87) | — | (4.50) | (0.79) | |||||||||||||
Total distributions paid | (0.20) | (0.12) | (2.87) | (0.04) | (4.63) | (0.86) | |||||||||||||
Net asset value, end of year/period | $20.86 | $17.05 | $15.45 | $17.94 | $14.03 | $19.76 | |||||||||||||
Market price, end of year/period | $20.91 | $17.04 | $15.43 | $— | $— | $— | |||||||||||||
Total return on NAV(2)(7) | 23.85% | 11.28% | 2.39% | 28.26% | (7.68)% | 4.72% | |||||||||||||
Total return on market price(4)(7) | 24.19% | 11.40% | 2.20% | —% | —% | —% | |||||||||||||
Supplemental Data and Ratios: | |||||||||||||||||||
Net assets at end of year/period (000’s) | $106,142 | $31,841 | $24,375 | $ 29,313 | $ 22,537 | $ 67,741 | |||||||||||||
Ratio of expenses to average net assets: | |||||||||||||||||||
Before waiver, expense reimbursement and recoupments(3)(8) | 1.56% | 1.55% | 1.58% | 2.56% | 2.58% | 2.18% | |||||||||||||
After waiver, expense reimbursement and recoupments(3)(8) | 1.56% | 1.55% | 1.38% | 2.11% | 2.39% | 2.18% | |||||||||||||
Ratio of net investment income (loss) to average net assets: | |||||||||||||||||||
Before waiver, expense reimbursement and recoupments(8) | 1.56% | 1.50% | 0.26% | (0.63)% | (0.13)% | 0.76% | |||||||||||||
After waiver, expense reimbursement and recoupments(8) | 1.56% | 1.50% | 0.46% | (0.18)% | 0.06% | 0.76% | |||||||||||||
Portfolio turnover rate | 132.50% (5)(7) | 283.70% (5) | 244.44% (5) | 303.76% | 251.72% | 239.08% | |||||||||||||
(1) | Per share net investment income was calculated using the daily average shares outstanding method. |
(2) | Total return on net asset value (NAV) represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends. |
(3) | The ratio of expenses to average net assets includes dividends on short positions, interest and broker expenses. The annualized before waiver, expense reimbursement and recoupments and after waiver, expense reimbursement and recoupments ratios excluding dividends on short positions, interest and broker expenses were 0.95% and 0.95%, 0.95% and 0.95%, 1.28% and 1.08%, 1.95% and 1.50%, 1.69% and 1.50%, 1.32% and 1.32%, for the years/periods ended May 31, 2024, November 30, 2023, November 30, 2022, November 30, 2021, November 30, 2020, November 30, 2019, respectively. |
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(4) | Total return on market price is calculated assuming an initial investment made at the market price on the first day of the period, reinvestment of dividends and distributions at market price during the period and redemption at market price on the last day of the period. |
(5) | Excludes the impact of in-kind transactions. |
(6) | The Fund converted from a mutual fund to an ETF pursuant to an Agreement and Plan of Reorganization on February 18, 2022. See Note 1 in the Notes to Financial Statements for additional information about the Reorganization. |
(7) | Not annualized for periods less than a full year. |
(8) | Annualized for periods less than a full year. |
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Convergence Long/Short Equity Fund Net Assets* | Shares Issued to Shareholders of Convergence Long/Short Equity Fund | Convergence Long/Short Equity ETF Net Assets | Combined Net Assets | Tax Status of Transfer | ||||||||||
$26,419,556 | 1,707,329 | $ — | $26,419,556 | Non-Taxable | ||||||||||
* | Includes accumulated net investment losses, accumulated realized gains and unrealized appreciation in the amounts of $(86,871), $2,453,571, and $8,049,316, respectively. |
(a) | Investment Valuation. Each security owned by the Fund, including long and short positions of common stock and real estate investment trusts, that is listed on a securities exchange, except those listed on the NASDAQ Stock Market LLC (“NASDAQ”), is valued at its last sale price on that exchange on the date as of which assets are valued. When the security is listed on more than one exchange, the Fund will use the price of the exchange that the Fund generally considers to be the principal exchange on which the stock is traded. |
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Level 1 | Level 2 | Level 3 | Total | ||||||||||
Assets(1): | |||||||||||||
Common Stock | $119,234,378 | $ — | $ — | $ 119,234,378 | |||||||||
Real Estate Investment Trusts | 2,333,112 | — | — | 2,333,112 | |||||||||
Short-Term Investments | 80,064 | — | — | 80,064 | |||||||||
Total Assets | $ 121,647,554 | $— | $— | $ 121,647,554 | |||||||||
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Level 1 | Level 2 | Level 3 | Total | ||||||||||
Liabilities: | |||||||||||||
Securities Sold Short | |||||||||||||
Common Stocks | $(50,343,166) | $— | $— | $(50,343,166) | |||||||||
Exchange Traded Funds | (1,950,847) | — | — | (1,950,847) | |||||||||
Real Estate Investment Trusts | (981) | — | — | (981) | |||||||||
Total Securities Sold Short | (52,294,994) | — | — | (52,294,994) | |||||||||
Total Liabilities | $(52,294,994) | $ — | $ — | $(52,294,994) | |||||||||
(1) | See the Schedule of Investments for industry classifications. |
(b) | Short Positions. The Fund may sell a security it does not own in anticipation of a decline in the fair value of that security. When the Fund sells a security short, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the termination of a short sale. For financial statement purposes, an amount equal to the settlement amount is included in the Statement of Assets and Liabilities as a liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the short positions. Subsequent fluctuations in the market prices of the securities sold, but not yet purchased, may require purchasing the securities at prices which could differ from the amount reflected in the Statement of Assets and Liabilities. The Fund is liable for any dividends or interest payable on securities while those securities are in a short position. Such amounts are recorded on the ex-dividend date as a dividend expense, and interest expense is accrued daily. As collateral for its short positions, the Fund is required to maintain segregated assets consisting of cash, cash equivalents or liquid securities. The segregated assets are valued consistent with Note 2a above. The amount of segregated assets is required to be adjusted daily to the extent additional collateral is required based on the change in fair value of the securities sold short. The Fund’s securities sold short and deposits for short sales are held with one major securities broker-dealer. The Fund does not require this broker-dealer to maintain collateral in support of the receivable for proceeds on securities sold short. |
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(c) | Federal Income Taxes. The Fund complies with the requirements of Subchapter M of the Internal Revenue Code, as amended, necessary to qualify as a regulated investment company and makes the requisite distributions of income and capital gains to their shareholders sufficient to relieve them from all or substantially all federal income taxes. Therefore, no federal income tax provision has been provided. |
(d) | Distributions to Shareholders. The Fund will distribute any net investment income and any net capital gains at least 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. Distributions to shareholders are recorded on the ex-dividend date. The Fund may also pay a special distribution at the end of the calendar year to comply with federal tax requirements. |
(e) | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
(f) | Share Valuation. The NAV per share of the Fund is calculated by dividing the sum of the fair value of the securities held by the Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding for the Fund, rounded to the nearest cent. The Fund’s shares will not be priced on the days on which the New York Stock Exchange is closed for trading. The Fund does not charge a redemption fee, and therefore the offering and redemption price per share are equal to the Fund’s NAV per share. |
(g) | Allocation of Income, Expenses and Gains/Losses. Expenses associated with a specific fund in the Trust are charged to that fund. Common Trust expenses are typically allocated evenly between the funds of the Trust, or by other equitable means. |
(h) | Other. Investment transactions are recorded on the trade date. The Fund determines the gain or loss from investment transactions on the identified cost basis by comparing original cost of the security lot sold with the net sale proceeds. Dividend income and expense is recognized on the ex-dividend date and interest income and expense is recognized on an accrual basis. Dividend income from real estate investment trusts (“REITs”) is recognized on the ex-date and included in dividend income. The calendar year-end classification of distributions received from REITs during the fiscal year are reported subsequent to year end; accordingly, the Fund estimates the character of REIT distributions based on the most recent information available and adjusts for actual classifications in the calendar year the information is reported. |
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November 30, | |||||||
2023 | 2022 | ||||||
Ordinary Income | $194,639 | $2,017,958 | |||||
Long-Term Capital Gain | $— | $2,701,201 | |||||
Cost basis of investments for federal income tax purposes(1) | $17,769,691 | |||
Gross tax unrealized appreciation | $5,974,707 | |||
Gross tax unrealized depreciation | (1,383,377) | |||
Net tax unrealized appreciation | 4,591,330 | |||
Undistributed ordinary income | 316,173 | |||
Undistributed long-term capital gain | — | |||
Total distributable earnings | 316,173 | |||
Other accumulated losses | (1,479,384) | |||
Total distributable earnings | $3,428,119 | |||
(1) | Includes securities sold short. |
Paid-in capital | $3,957,678 | |||
Total distributable earnings | $(3,957,678) | |||
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Six Months Ended May 31, 2024 | Year Ended November 30, 2023 | ||||||
Shares sold | 3,920,000 | 1,520,000 | |||||
Shares reinvested | — | — | |||||
Shares redeemed | (700,000) | (1,230,000) | |||||
Net increase | 3,220,000 | 290,000 | |||||
Purchases | Sales | Creations In-Kind | Redemptions In-Kind | ||||||||
$95,297,222 | $92,944,012 | $82,453,948 | $13,216,772 | ||||||||
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28 |
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Investment Adviser | Convergence Investment Partners, LLC 3801 PGA Boulevard Suite 1001 Palm Beach Gardens, Florida 33410 | |||
Legal Counsel | Godfrey & Kahn, S.C. 833 East Michigan Street Suite 1800 Milwaukee, Wisconsin 53202 | |||
Independent Registered Public Accounting Firm | Cohen & Company, Ltd. 342 North Water Street Suite 830 Milwaukee, Wisconsin 53202 | |||
Transfer Agent, Fund Accountant and Fund Administrator | U.S. Bancorp Fund Services, LLC 615 East Michigan Street Milwaukee, Wisconsin 53202 | |||
Custodian | U.S. Bank National Association Custody Operations 1555 North River Center Drive Milwaukee, Wisconsin 53212 | |||
Distributor | Foreside Fund Services Three Canal Plaza Suite 100 Portland, Maine 04101 | |||
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(b) | Financial Highlights are included within the financial statements filed under Item 7(a) 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
There were no matters submitted to a vote of shareholders during the period covered by this report.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Investment Companies.
This information is included within the financial statements filed under Item 7(a) of this Form.
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 President and Treasurer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider. |
(b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. |
Item 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.
(a) | (1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not Applicable. |
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Trust for Professional Managers |
By (Signature and Title)* | /s/ John Buckel | ||
John Buckel, Principal Executive |
Date | 8/1/2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ John Buckel | ||
John Buckel, Principal Executive |
Date | 8/1/2024 |
By (Signature and Title)* | /s/ Jennifer Lima | ||
Jennifer Lima, Principal Financial Officer |
Date | 8/1/2024 |
* Print the name and title of each signing officer under his or her signature.