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 | 811-10487 | |||||||
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Hotchkis & Wiley Funds | ||||||||
(Exact name of registrant as specified in charter) | ||||||||
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725 South Figueroa Street, 39th Floor Los Angeles, California |
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(Address of principal executive offices) |
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Anna Marie Lopez 725 South Figueroa Street, 39th Floor Los Angeles, California 90017-5439 | ||||||||
(Name and address of agent for service) | ||||||||
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Copy to: Maureen A. Miller, Esq. Joseph M. Mannon, Esq. Vedder Price P.C. 222 North LaSalle Street, 26th Floor Chicago, IL 60601 | ||||||||
(Counsel for the registrant) | ||||||||
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Registrant’s telephone number, including area code: | (213) 430-1000 |
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Date of fiscal year end: | June 30, 2019 |
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Date of reporting period: | December 31, 2018 |
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Item 1. Reports to Stockholders.
Hotchkis & Wiley Funds
Semi-annual Report
DECEMBER 31, 2018
DIVERSIFIED VALUE FUND
LARGE CAP VALUE FUND
MID-CAP VALUE FUND
SMALL CAP VALUE FUND
SMALL CAP DIVERSIFIED VALUE FUND
GLOBAL VALUE FUND
INTERNATIONAL VALUE FUND
VALUE OPPORTUNITIES FUND
CAPITAL INCOME FUND
HIGH YIELD FUND
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds' shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Funds or from your financial intermediary (such as a broker-dealer or bank). Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. | |||
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications electronically from the Funds by contacting your financial intermediary or, if you invest directly with a Fund, by calling 1-866-HW-FUNDS (1-866-493-8637). | |||
You may elect to receive all future reports in paper free of charge. You can request to continue receiving paper copies of your shareholder reports by contacting your financial intermediary or, if you invest directly with a Fund, by calling 1-866-HW-FUNDS (1-866-493-8637) to let the Fund know of your request. Your election to receive reports in paper will apply to all funds held in your account. |
TABLE OF CONTENTS
SHAREHOLDER LETTER | 1 | ||||||
FUND INFORMATION | 4 | ||||||
FUND PERFORMANCE DATA | 6 | ||||||
SCHEDULE OF INVESTMENTS: | |||||||
DIVERSIFIED VALUE FUND | 16 | ||||||
LARGE CAP VALUE FUND | 18 | ||||||
MID-CAP VALUE FUND | 20 | ||||||
SMALL CAP VALUE FUND | 22 | ||||||
SMALL CAP DIVERSIFIED VALUE FUND | 24 | ||||||
GLOBAL VALUE FUND | 30 | ||||||
INTERNATIONAL VALUE FUND | 32 | ||||||
VALUE OPPORTUNITIES FUND | 34 | ||||||
CAPITAL INCOME FUND | 38 | ||||||
HIGH YIELD FUND | 46 | ||||||
STATEMENTS OF ASSETS & LIABILITIES | 52 | ||||||
STATEMENTS OF OPERATIONS | 54 | ||||||
STATEMENTS OF CHANGES IN NET ASSETS | 56 | ||||||
FINANCIAL HIGHLIGHTS | 61 | ||||||
NOTES TO THE FINANCIAL STATEMENTS | 66 | ||||||
FUND EXPENSE EXAMPLES | 82 | ||||||
INFORMATION ABOUT THE FUNDS | BACK COVER |
DEAR SHAREHOLDER:
The following investment review and shareholder report relates to the activities of the Hotchkis & Wiley Funds for the six months ended December 31, 2018.
OVERVIEW
The S&P 500® Index (equity market) returned –6.9% and the ICE BofAML U.S. High Yield Index (high yield market) returned –2.3% in the six-month period ended December 31, 2018. Until the most recent quarter, robust corporate earnings growth had overcome political unrest across the globe. In the fourth quarter, however, ongoing trade tensions came to the forefront. Markets began pricing in slowing economic growth in several major economies that are important trading partners with the U.S. In contrast to this however, real GDP growth in the U.S. was a healthy +3.4% in the most recent quarter and the unemployment rate remained below 4%. Both the Federal Reserve and the European Central Bank implemented, and spoke of future restrictive monetary policy. This appears to have added to equity investor apprehension. The forward P/E ratio for the S&P 500® Index declined from 17.0x six months ago to 15.4x at the end of the year. The index's median P/E since 1990 is 16.4x, so it went from above average to below average over the period. The high yield market's yield-to-worst rose 1.5% over the six months, closing at 8.0%. The spread over treasuries widened 164 basis points, from 371 six months ago to 535 at year's end. The high yield market's median spread since 1995 has been about 500 basis points; consequently, the spread went from much tighter than average to slightly wider than average — from our perspective, a considerably more attractive entry point.
Fears that slowing economic growth would weaken demand weighed heavily on oil prices. West Texas Intermediate (WTI) crude closed the year at $45/barrel, down 39% from June 30th. Commodity securities were among the worst-performers over the six months, with energy and materials leading the decline. Non-cyclical securities outperformed cyclical securities. The performance dispersion and resulting valuation differentials among securities that are economically sensitive compared to those that are not suggests the market has begun to price in a recession scenario. Economic metrics do not yet verify a meaningful change from positive economic growth. At present, while acknowledging the uncertain economic outlook, we view the valuation support of cyclical securities as vastly superior to non-cyclicals. This valuation discrepancy provides a margin of safety in the long-run almost irrespective of near term economic growth.
The Fed raised rates by 25 basis points twice in the past six months, moving the Fed Funds target rate from 2.0% to 2.5% in the latter half of 2018. As of year-end, the yield on the 10-year stood just 20 basis points higher than the yield on the 2-year, an ever so slightly positive sloping curve. The par-weighted average price of a high yield bond went from $98 six months ago to slightly above $92 at the end of 2018. Higher rated credits held up better than lower rated credits as the high yield market sold off.
While it took a decline in markets to get here, we are more constructive on both the equity and high yield market's forward-looking prospects than we were a year ago due to the improvement in valuation. The market is also providing pockets of opportunities that we view as especially compelling as an active manager. As a result, the equity funds exhibit large valuation discounts relative to their
benchmarks and the high yield fund exhibits a large spread advantage relative to its benchmark — an uncommon opportunity. We continue to believe that equity and high yield markets can be driven by fads and temperament in the short run, but fundamentals and valuation prevail in the long-run. Accordingly, we commit to maintaining our unwavering dedication to the principles of long-term, fundamental value investing across the capital structure.
HOTCHKIS & WILEY DIVERSIFIED VALUE FUND
The Fund's Class I shares had a total return of –14.56% for the six-month period ended December 31, 2018 compared to the Russell 1000® Value Index return of –6.69%.
The Fund underperformed the Russell 1000® Value Index in the six-month period ended December 31, 2018. The Fund's value focus, cyclical tilt, and underweight to mega caps all worked against it during the period. About 21% of the portfolio was invested in stocks trading at a discount to book value, compared to just 5% for the index. This hurt performance as deeply discounted stocks lagged the overall index. The Fund was overweight energy, financials, and consumer discretionary (cyclical sectors) and underweight health care, utilities, and consumer staples (non cyclicals), which also hurt performance as economically sensitive stocks sold off disproportionately. Stock selection in financials and energy was negative, which was partially offset by positive stock selection in information technology. The underweight position in materials and overweight position in communication services were modest positive contributors. The largest detractors to relative performance in the period were Apache, Hess, AIG, Adient, and Marathon Oil; the positive contributors were Corning, Ericsson, Microsoft, Oracle, and Sanofi.
HOTCHKIS & WILEY LARGE CAP VALUE FUND
The Fund's Class I shares had a total return of –14.15% for the six-month period ended December 31, 2018 compared to the Russell 1000® Value Index return of –6.69%.
During the six-month period ended December 31, 2018, the Fund underperformed the Russell 1000® Value index. The large overweight to stocks trading at less than book value (20% vs. 5%) hurt relative performance as this group lagged the index by a wide margin. The overweight exposure to energy and financials, along with the underweight position in health care, utilities, and consumer staples also detracted from performance. Stock selection in financials, energy, and consumer discretionary hurt relative returns, which was partially offset by positive stock selection in information technology. The largest detractors to relative performance in the period were Apache, Hess, Adient, AIG, and Marathon Oil; the positive contributors were Ericsson, ARRIS International, Corning, Oracle, and Microsoft.
HOTCHKIS & WILEY MID-CAP VALUE FUND
The Fund's Class I shares had a total return of –23.56% for the six-month period ended December 31, 2018 compared to the Russell Midcap® Value Index return of –12.15%.
The Fund underperformed the Russell Midcap® Value Index in the six-month period ended December 31, 2018. The overweight and stock selection in energy was the largest detractor to performance in the period. Much of the energy exposure is in upstream businesses that are leveraged to oil prices, which declined nearly 40% in the
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period. The Fund's average exposure to stocks with a market cap of $5 billion was much greater than the index, about 50% compared to about 10%, which hurt performance as this group underperformed the rest of the index by a wide margin. Stock selection in real estate and industrials also hurt relative performance, which was largely offset by positive stock selection in information technology and utilities. The largest detractors to relative performance in the period were Whiting Petroleum, Weatherford International, Kosmos Energy, Superior Energy Services, and Cairn Energy; the positive contributors were ARRIS International, Popular, NRG Energy, Ericsson, and Office Depot.
HOTCHKIS & WILEY SMALL CAP VALUE FUND
The Fund's Class I shares had a total return of –19.56% for the six-month period ended December 31, 2018 compared to the Russell 2000® Value Index return of –17.36%.
During the six-month period ended December 31, 2018, the fund underperformed the Russell 2000® Value index. The overweight position in energy was the largest detractor. This was the worst-performing small cap sector by a large magnitude, as crude oil prices declined nearly 40% over the six months. Stock selection in communication services, financials, and real estate also detracted from performance, but this was more than offset by positive stock selection in information technology, health care and materials. The largest detractors to relative performance in the period were Whiting Petroleum, Masonite International, Kosmos Energy, Frank's International, and C&J Energy Services; the positive contributors were ARRIS International, Hanger, Popular, WestJet Airlines, and Office Depot.
HOTCHKIS & WILEY SMALL CAP DIVERSIFIED VALUE FUND
The Fund's Class I shares had a total return of –19.59% for the six-month period ended December 31, 2018 compared to the Russell 2000® Value Index return of –17.36%.
The Fund underperformed the Russell 2000® Value in the six-month period ended December 31, 2018. The Fund's overweight to stock with a market cap less than $1 billion (39% vs. 22%) hurt relative performance as smaller stocks declined disproportionately. The overweight position in energy along with stock selection in consumer discretionary and industrials also hurt relative performance, but was partially offset by positive stock selection in materials, energy, and health care. The largest detractors to relative performance in the period were Francesca's Holdings, Invacare, Ultra Petroleum, Superior Industries, and Horizon Global; the positive contributors were Renewable Energy Group, El Pollo Loco, Photronics, Federated Investors, and Cooper Tire & Rubber.
HOTCHKIS & WILEY GLOBAL VALUE FUND
The Fund's Class I shares had a total return of –17.30% for the six-month period ended December 31, 2018 compared to the MSCI World Index return of –9.10%.
Over the six months ended December 31, 2018, the Fund underperformed the MSCI World Index. While we view the Fund's ability to invest in companies of all sizes is a considerable long-term advantage, this worked against the Fund over this period as smaller stocks lagged larger stocks. The Fund's large valuation discount to the index — again something we view as a long-term advantage — also
detracted from performance. Nearly 40% of the Fund was invested in stocks trading at a discount to book value, compared to just 8% for the index. This group lagged overall market by a wide margin. Positive stock selection in information technology and health care partially offset these headwinds. The largest detractors to relative performance in the period were Whiting Petroleum, Royal Mail, Kosmos Energy, AIG, and Adient; the positive contributors were ARRIS International, Ericsson, Popular, Oracle, and WestJet Airlines.
HOTCHKIS & WILEY INTERNATIONAL VALUE FUND
The Fund's Class I shares had a total return of –16.21% for the six-month period ended December 31, 2018 compared to the MSCI World ex-USA Index return of –11.64%.
The Fund underperformed the MSCI World ex-USA Index over the six-month period. Mega cap stocks, those with a market cap of more than 100 billion USD held up better than the overall index, but the Fund was underweight (7% vs. 20%) which hurt relative performance. Stock selection in energy, industrials, and financials also hurt relative performance, but was partially offset by positive stock selection in information technology. The largest detractors to relative performance in the period were Royal Mail, BAE Systems, Frank's International, Kosmos Energy, and Societe Generale; the positive contributors were ARRIS International, Ericsson, Tokio Marine, WestJet Airlines, and Orange Belguim.
HOTCHKIS & WILEY VALUE OPPORTUNITIES FUND
The Fund's Class I shares had a total return of –13.78% for the six-month period ended December 31, 2018 compared to the Russell 3000® Value Index return of –7.51%.
During the six-month period ended December 31, 2018, the Fund underperformed the Russell 3000® Value Index. Relative to the index, the Fund was overweight smaller stocks, which hurt relative performance as small stocks underperformed large stocks. About 23% of the Fund was invested in stocks trading at less than 1x book value compared to just 5% for the index, which hurt relative performance as this cohort lagged the overall index by a large magnitude. Security selection in financials and energy also detracted from performance, which was partially offset by positive security selection in information technology and materials. The largest detractors to relative performance in the period were Whiting Petroleum, Apache, Goldman Sachs, Royal Mail, and Frank's International; the positive contributors were ARRIS International, New Day Aluminum (credit), Microsoft, Hanger, and Oracle.
HOTCHKIS & WILEY CAPITAL INCOME FUND
The Fund's Class I shares had a total return of –13.36% for the six-month period ended December 31, 2018, compared to the 50/50 blended benchmark of the S&P 500® Index and the ICE BofAML U.S. Corporate, Government and Mortgage Index return of –2.46%.
The Fund underperformed the 50/50 blended benchmark over the six-month period. The Fund's average equity exposure over the period was 56% with the remaining 44% invested in high yield credits; the long-term target is 50% in each. The equity overweight hurt performance as equities sold off more than high yield credits in the period. The equity portion of the Fund underperformed the S&P 500® Index in
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the period. The Fund invests across the market cap spectrum, which we view as an important long-term advantage. This worked against the Fund in the period; however, as the overweight to small and mid cap stocks hurt relative performance as larger stocks declined less. The overweight and stock selection in energy also detracted from performance. Positive stock selection in information technology and the underweight position in communication services helped relative performance. The largest detractors to relative performance in the period were Whiting Petroleum, Sanchez Energy, Royal Mail, Adient, and Kosmos Energy; the positive contributors were ARRIS International, Popular, General Electric, Ericsson, and Corning. The high yield portion of the Fund underperformed the ICE BofAML U.S. Corporate, Government and Mortgage Index and the ICE BofAML U.S. High Yield Index over the period. Relative to the high yield index, the overweight and security selection in energy hurt performance, which was partially offset by positive security selection in basic industry and media.
HOTCHKIS & WILEY HIGH YIELD FUND
The Fund's Class I shares had a total return of –3.37% for the six-month period ended December 31, 2018 compared to the ICE BofAML BB-B U.S. High Yield Constrained Index return of –1.58%.
Over the six months ended December 31, 2018, the Fund underperformed the ICE BofAML BB-B U.S. High Yield Constrained Index. Credit selection in energy was the largest detractor to relative performance, as several credits tied to oil prices sold off with the sharp decline in crude prices. Credit selection in consumer goods and automotive were more modest detractors. Positive credit selection in basic industry, media, and financial services helped relative performance in the period.
CONCLUSION
We appreciate your continued support of the Hotchkis & Wiley Funds, and we look forward to serving your investment needs in the future.
Sincerely,
Anna Marie Lopez President | George Davis Fund Manager | Patty McKenna Fund Manager | |||||||||
James Miles Fund Manager | Stan Majcher Fund Manager | David Green Fund Manager | |||||||||
Scott McBride Fund Manager | Judd Peters Fund Manager | Ray Kennedy Fund Manager | |||||||||
Mark Hudoff Fund Manager | Patrick Meegan Fund Manager | Scott Rosenthal Fund Manager | |||||||||
Richard Mak Fund Manager | Ryan Thomes Fund Manager | Noah Mayer Fund Manager |
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Fund Information
ABOUT FUND PERFORMANCE
The Large Cap Value Fund, Mid-Cap Value Fund and High Yield Fund have five classes of shares. The Diversified Value Fund, Small Cap Value Fund, Small Cap Diversified Value Fund, Global Value Fund, International Value Fund, Value Opportunities Fund and Capital Income Fund have four classes of shares. Each share class has its own sales charge and expense structure, allowing you to invest in the way that best suits your needs. Currently, the Small Cap Diversified Value Fund, Global Value Fund and Capital Income Fund are not offering Class C shares to investors, the International Value Fund is not offering Class A or Class C shares to investors and the Funds are not offering Class T shares to investors.
Class I shares have no initial sales charge and bear no ongoing distribution and service fees under a 12b-1 plan. Class I shares are available only to eligible investors.
Class A shares incur a maximum initial sales charge of 5.25% for the Diversified Value Fund, Large Cap Value Fund, Mid-Cap Value Fund, Small Cap Value Fund, Small Cap Diversified Value Fund, Global Value Fund, International Value Fund and Value Opportunities Fund, 4.75% for the Capital Income Fund and 3.75% for the High Yield Fund and an annual distribution and service fee of 0.25%.
Class C shares are subject to an annual distribution and service fee of 1.00%. In addition, Class C shares are subject to a 1.00% contingent deferred sales charge (CDSC) if redeemed within one year after purchase. Class C shares automatically convert to Class A shares approximately eight years after purchase and will then be subject to lower annual distribution and service fees.
Class R shares have no initial sales charge or CDSC and are subject to an annual distribution and service fee of 0.50%. Class R shares are offered only by the Large Cap Value Fund and Mid-Cap Value Fund and are available only to certain retirement plans.
Class T shares incur a maximum initial sales charge of 2.50% and an annual distribution and service fee of 0.25%.
Class Z shares have no initial sales charge and bear no ongoing distribution and service fees under a 12b-1 plan. Class Z shares are offered only by the High Yield Fund and are available only to eligible investors (provided that no compensation, administrative payments, sub-transfer agency payments and service payments are required).
FUND RISKS
Mutual fund investing involves risk; loss of principal is possible. The Mid-Cap Value Fund, Small Cap Value Fund, Small Cap Diversified Value Fund, Global Value Fund, International Value Fund and Value Opportunities Fund invest in small- and medium-capitalization companies which tend to have limited liquidity and greater price volatility than large-capitalization companies. The Value Opportunities Fund is a non-diversified fund which involves greater risk than investing in diversified funds, such as business risk, significant stock price fluctuations and sector concentration. Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales. The Value Opportunities Fund, Capital Income Fund and High Yield Fund invest in debt securities that decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Value Opportunities Fund, Capital Income Fund and High Yield Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and
interest than higher-rated securities. The Value Opportunities Fund, Capital Income Fund and High Yield Fund may utilize derivative instruments, which derive their performance from the performance of an underlying asset, index, interest rate or currency exchange rate. Derivatives can be volatile and involve various types and degrees of risks. Depending upon the characteristics of particular derivatives, they can suddenly become illiquid. Investments by the Capital Income Fund and High Yield Fund in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. The Funds may invest in foreign securities, including developed and emerging markets, which involve greater volatility and political, economic, and currency risks.
MARKET INDEXES
The following are definitions for indexes used in the shareholder letter and the fund performance data on the following pages. These indexes are unmanaged and include the reinvestment of dividends, but do not reflect the payment of transaction costs and advisory and other fees associated with an investment in the Funds. The securities that comprise these indexes may differ substantially from the securities in the Funds' portfolios. The Funds' value disciplines may prevent or restrict investments in the benchmark indexes. It is not possible to invest directly in an index. Each index named is not the only index which may be used to characterize performance of a specific Fund and other indexes may portray different comparative performance.
S&P 500® Index, a capital weighted, unmanaged index, represents the aggregate market value of the common equity of 500 stocks primarily traded on the New York Stock Exchange.
Russell 1000® Index, an unmanaged index, measures the performance of the 1,000 largest companies in the Russell 3000® Index.
Russell 1000® Value Index measures the performance of those Russell 1000® companies with lower price-to-book ratios and lower forecasted growth values.
Russell Midcap® Index, an unmanaged index, measures the performance of the 800 smallest companies in the Russell 1000® Index.
Russell Midcap® Value Index measures the performance of those Russell Midcap® companies with lower price-to-book ratios and lower forecasted growth values.
Russell 2000® Index, an unmanaged index, measures the performance of the 2,000 smallest companies in the Russell 3000® Index.
Russell 2000® Value Index measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values.
Russell 3000® Index, an unmanaged index, is comprised of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.
Russell 3000® Value Index measures the performance of those Russell 3000® companies with lower price-to-book ratios and lower forecasted growth values.
MSCI World Index is a free float-adjusted weighted index capturing large and mid cap representation across 23 Developed Markets (DM) countries.
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Fund Information
Russell Developed Index measures the performance of the investable securities in developed countries globally across all market capitalization ranges.
MSCI World ex-USA Index is a free float-adjusted weighted index capturing large and mid cap representation across 22 of 23 Developed Markets (DM) countries, excluding the United States.
Russell Developed ex-U.S. Index measures the performance of the investable securities in developed countries globally across all market capitalization ranges, excluding U.S. securities.
ICE BofAML U.S. Corporate, Government and Mortgage Index is a broad-based measure of the total rate of return performance of the U.S. investment grade bond markets. The Index is a capitalization weighted aggregation of outstanding U.S. Treasury, agency and supranational, mortgage pass-through, and investment grade corporate bonds meeting specified selection criteria.
ICE BofAML BB-B U.S. High Yield Constrained Index contains all securities in the ICE BofAML U.S. High Yield Index rated BB+ through B- by S&P (or equivalent as rated by Moody's or Fitch), but caps issuer exposure at 2%. Index constituents are capitalization-weighted, based on their current amount outstanding, provided the total allocation to an individual issuer does not exceed 2%.
ICE BofAML U.S. High Yield Index tracks the performance of below investment grade, but not in default, U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market, and includes issues with a credit rating of BBB or below, as rated by Moody's and S&P.
DISCLOSURE
Past performance does not guarantee future results.
The shareholder letter reflects opinions of Fund managers as of December 31, 2018. They are subject to change and any forecasts made cannot be guaranteed. The Funds might not continue to hold any securities mentioned and have no obligation to disclose purchases or sales in these securities. Please refer to the Schedule of Investments in this report for a complete list of Fund holdings for December 31, 2018. Indexes do not incur expenses or sales loads and are not available for investment.
The Global Industry Classification Standard (GICS®) was developed by MSCI, an independent provider of global indices and benchmark-related products and services, and Standard & Poor's (S&P), an independent international financial data and investment services company. The GICS methodology has been widely accepted as an industry analysis framework for investment research, portfolio management and asset allocation. The GICS structure consists of 11 sectors, 24 industry groups, 69 industries and 158 sub-industries. Each stock that is classified will have a coding at all four of these levels.
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform other asset types during a given period.
Each type of asset class or investment product has a different risk-return profile, which should be considered when investing. All investments contain risk and may lose value.
Earnings growth is not representative of the Fund's future performance.
Basis point (bp) is a unit equal to 1/100th of 1% (0.01%) and is used to denote the change in a financial instrument.
Book value is the net asset value of a company, calculated by subtracting total liabilities from total assets.
Earnings per share (EPS) is calculated by taking the total earnings divided by the number of shares outstanding.
Investment grade indicates that a municipal or corporate bond has a relatively low risk of default.
Market capitalization of a company is calculated by multiplying the number of outstanding shares by the current market price of a share.
Price-to-forward earnings is the projected P/E ratios of the companies invested in the portfolio, which ratios represent current market price per share divided by a company's estimated future earnings-per-share. Projected earnings are consensus analyst forecasts; actual P/E ratios may differ from projected P/E ratios.
Spread is the percentage point difference between yields of various classes of bonds compared to treasury bonds.
Yield-to-Worst is the lowest possible yield from owning a bond considering all potential call dates prior to maturity.
Credit Quality weights by rating were derived from the highest bond rating as determined by S&P, Moody's or Fitch. Bond ratings are grades given to bonds that indicate their credit quality as determined by private independent rating services such as S&P, Moody's and Fitch. These firms evaluate a bond issuer's financial strength, or its ability to pay a bond's principal and interest in a timely fashion. Ratings are expressed as letters ranging from 'AAA', which is the highest grade, to 'D', which is the lowest grade. In limited situations when none of the three rating agencies have issued a formal rating, the Advisor will classify the security as nonrated.
During the six months ended December 31, 2018, the Value Opportunities Fund held futures contracts, which resulted in realized gains and unrealized losses, and purchased put options, which resulted in unrealized losses, and the Capital Income Fund and High Yield Fund held credit default swap contracts, which resulted in realized gains to each Fund.
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Fund Performance Data
DIVERSIFIED VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2018 | Six Months | 1 Year | 5 Years | 10 Years | Since 8/30/04* | ||||||||||||||||||
Class I | |||||||||||||||||||||||
Average annual total return | –14.56 | % | –14.74 | % | 4.68 | % | 12.28 | % | 5.95 | % | |||||||||||||
Class A | |||||||||||||||||||||||
Average annual total return (with sales charge) | –19.12 | % | –19.41 | % | 3.31 | % | 11.40 | % | 5.29 | % | |||||||||||||
Average annual total return (without sales charge) | –14.66 | % | –14.93 | % | 4.42 | % | 12.00 | % | 5.69 | % | |||||||||||||
Class C | |||||||||||||||||||||||
Average annual total return (with CDSC) | –16.05 | % | –16.64 | % | 3.63 | % | 11.18 | % | 4.91 | % | |||||||||||||
Average annual total return (without CDSC) | –15.05 | % | –15.64 | % | 3.63 | % | 11.18 | % | 4.91 | % | |||||||||||||
S&P 500® Index†† | |||||||||||||||||||||||
Average annual total return | –6.85 | % | –4.38 | % | 8.49 | % | 13.12 | % | 8.14 | % | |||||||||||||
Russell 1000® Index†† | |||||||||||||||||||||||
Average annual total return | –7.42 | % | –4.78 | % | 8.21 | % | 13.28 | % | 8.33 | % | |||||||||||||
Russell 1000® Value Index†† | |||||||||||||||||||||||
Average annual total return | –6.69 | % | –8.27 | % | 5.95 | % | 11.18 | % | 7.14 | % |
Average annual total returns with sales charge and CDSC shown for Class A and Class C shares, respectively, have been adjusted to reflect the applicable sales charges of each specific class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Class C shares have no adjustment for sales charges, but redemptions within one year of purchase may be subject to a CDSC of 1%. Average annual total returns without sales charge or CDSC do not reflect the sales charges. Had the sales charge or CDSC been included, the Fund's returns would have been lower.
† The Fund invests primarily in equity securities of companies with market capitalizations similar to the Russell 1000® Index.
†† See index descriptions in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I, Class A and Class C.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
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Fund Performance Data
LARGE CAP VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2018 | Six Months | 1 Year | 5 Years | 10 Years | Since 6/24/87* | ||||||||||||||||||
Class I | |||||||||||||||||||||||
Average annual total return | –14.15 | % | –14.25 | % | 5.01 | % | 12.58 | % | 8.54 | % | |||||||||||||
Class A | |||||||||||||||||||||||
Average annual total return (with sales charge) | –18.77 | % | –18.95 | % | 3.63 | % | 11.70 | % | 8.10 | % | |||||||||||||
Average annual total return (without sales charge) | –14.26 | % | –14.47 | % | 4.75 | % | 12.30 | % | 8.29 | % | |||||||||||||
Class C | |||||||||||||||||||||||
Average annual total return (with CDSC) | –15.58 | % | –16.10 | % | 3.97 | % | 11.47 | % | 7.47 | % | |||||||||||||
Average annual total return (without CDSC) | –14.58 | % | –15.10 | % | 3.97 | % | 11.47 | % | 7.47 | % | |||||||||||||
Class R | |||||||||||||||||||||||
Average annual total return | –14.37 | % | –14.71 | % | 4.49 | % | 12.02 | % | 8.01 | % | |||||||||||||
S&P 500® Index†† | |||||||||||||||||||||||
Average annual total return | –6.85 | % | –4.38 | % | 8.49 | % | 13.12 | % | 9.31 | % | |||||||||||||
Russell 1000® Index†† | |||||||||||||||||||||||
Average annual total return | –7.42 | % | –4.78 | % | 8.21 | % | 13.28 | % | 9.40 | % | |||||||||||||
Russell 1000® Value Index†† | |||||||||||||||||||||||
Average annual total return | –6.69 | % | –8.27 | % | 5.95 | % | 11.18 | % | n/a |
Returns shown for Class A, Class C, and Class R shares for the periods prior to their inception are derived from the historical performance of Class I shares of the Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of each specific class. (Inception dates: Class A — 10/26/01; Class C — 2/4/02; Class R — 8/28/03.)
Average annual total returns with sales charge and CDSC shown for Class A and Class C shares, respectively, have been adjusted to reflect the applicable sales charges of each specific class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Class C shares have no adjustment for sales charges, but redemptions within one year of purchase may be subject to a CDSC of 1%. Average annual total returns without sales charge or CDSC do not reflect the sales charges. Had the sales charge or CDSC been included, the Fund's returns would have been lower.
† The Fund invests primarily in equity securities of companies with market capitalizations similar to the Russell 1000® Index.
†† See index descriptions in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
7
Fund Performance Data
MID-CAP VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2018 | Six Months | 1 Year | 5 Years | 10 Years | Since 1/2/97* | ||||||||||||||||||
Class I | |||||||||||||||||||||||
Average annual total return | –23.56 | % | –19.29 | % | 0.65 | % | 14.01 | % | 10.63 | % | |||||||||||||
Class A | |||||||||||||||||||||||
Average annual total return (with sales charge) | –27.66 | % | –23.74 | % | –0.68 | % | 13.10 | % | 10.09 | % | |||||||||||||
Average annual total return (without sales charge) | –23.66 | % | –19.51 | % | 0.39 | % | 13.72 | % | 10.36 | % | |||||||||||||
Class C | |||||||||||||||||||||||
Average annual total return (with CDSC) | –24.96 | % | –21.12 | % | –0.36 | % | 12.89 | % | 9.56 | % | |||||||||||||
Average annual total return (without CDSC) | –23.96 | % | –20.12 | % | –0.36 | % | 12.89 | % | 9.56 | % | |||||||||||||
Class R | |||||||||||||||||||||||
Average annual total return | –23.74 | % | –19.69 | % | 0.15 | % | 13.45 | % | 10.15 | % | |||||||||||||
Russell Midcap® Index†† | |||||||||||||||||||||||
Average annual total return | –11.14 | % | –9.06 | % | 6.26 | % | 14.03 | % | 9.46 | % | |||||||||||||
Russell Midcap® Value Index†† | |||||||||||||||||||||||
Average annual total return | –12.15 | % | –12.29 | % | 5.44 | % | 13.03 | % | 9.60 | % |
Returns shown for Class A, Class C, and Class R shares for the periods prior to their inception are derived from the historical performance of Class I shares of the Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of each specific class. (Inception dates: Class A, Class C — 1/2/01; Class R — 8/28/03.)
Average annual total returns with sales charge and CDSC shown for Class A and Class C shares, respectively, have been adjusted to reflect the applicable sales charges of each specific class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Class C shares have no adjustment for sales charges, but redemptions within one year of purchase may be subject to a CDSC of 1%. Average annual total returns without sales charge or CDSC do not reflect the sales charges. Had the sales charge or CDSC been included, the Fund's returns would have been lower.
† The Fund invests primarily in equity securities of companies with market capitalizations similar to the Russell Midcap® Index.
†† See index descriptions in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
8
Fund Performance Data
SMALL CAP VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2018 | Six Months | 1 Year | 5 Years | 10 Years | Since 9/20/85* | ||||||||||||||||||
Class I | |||||||||||||||||||||||
Average annual total return | –19.56 | % | –14.90 | % | 2.25 | % | 15.57 | % | 10.79 | % | |||||||||||||
Class A | |||||||||||||||||||||||
Average annual total return (with sales charge) | –23.89 | % | –19.57 | % | 0.91 | % | 14.67 | % | 10.36 | % | |||||||||||||
Average annual total return (without sales charge) | –19.67 | % | –15.11 | % | 2.00 | % | 15.28 | % | 10.54 | % | |||||||||||||
Class C | |||||||||||||||||||||||
Average annual total return (with CDSC) | –20.96 | % | –16.73 | % | 1.24 | % | 14.44 | % | 9.74 | % | |||||||||||||
Average annual total return (without CDSC) | –19.96 | % | –15.73 | % | 1.24 | % | 14.44 | % | 9.74 | % | |||||||||||||
Russell 2000® Index†† | |||||||||||||||||||||||
Average annual total return | –17.35 | % | –11.01 | % | 4.41 | % | 11.97 | % | 9.31 | % | |||||||||||||
Russell 2000® Value Index†† | |||||||||||||||||||||||
Average annual total return | –17.36 | % | –12.86 | % | 3.61 | % | 10.40 | % | n/a |
Returns shown for Class A and Class C shares for the periods prior to their inception are derived from the historical performance of Class I shares of the Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of each specific class. (Inception dates: Class A — 10/6/00; Class C — 2/4/02.)
Average annual total returns with sales charge and CDSC shown for Class A and Class C shares, respectively, have been adjusted to reflect the applicable sales charges of each specific class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Class C shares have no adjustment for sales charges, but redemptions within one year of purchase may be subject to a CDSC of 1%. Average annual total returns without sales charge or CDSC do not reflect the sales charges. Had the sales charge or CDSC been included, the Fund's returns would have been lower.
† The Fund invests primarily in equity securities of companies with market capitalizations similar to the Russell 2000® Index.
†† See index descriptions in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
9
Fund Performance Data
SMALL CAP DIVERSIFIED VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2018 | Six Months | 1 Year | Since 6/30/14* | ||||||||||||
Class I | |||||||||||||||
Average annual total return | –19.59 | % | –14.33 | % | 4.52 | % | |||||||||
Class A | |||||||||||||||
Average annual total return (with sales charge) | –23.86 | % | –19.06 | % | 3.01 | % | |||||||||
Average annual total return (without sales charge) | –19.66 | % | –14.59 | % | 4.24 | % | |||||||||
Russell 2000® Index†† | |||||||||||||||
Average annual total return | –17.35 | % | –11.01 | % | 4.18 | % | |||||||||
Russell 2000® Value Index†† | |||||||||||||||
Average annual total return | –17.36 | % | –12.86 | % | 3.07 | % |
Average annual total returns with sales charge shown for Class A shares have been adjusted to reflect the applicable sales charge of the class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Average annual total returns without sales charge do not reflect the sales charge. Had the sales charge been included, the Fund's returns would have been lower.
† The Fund invests primarily in equity securities of companies with market capitalizations similar to the Russell 2000® Index.
†† See index descriptions in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I and Class A.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
10
Fund Performance Data
GLOBAL VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2018 | Six Months | 1 Year | 5 Years | Since 12/31/12* | |||||||||||||||
Class I | |||||||||||||||||||
Average annual total return | –17.30 | % | –16.03 | % | 1.94 | % | 6.91 | % | |||||||||||
Class A | |||||||||||||||||||
Average annual total return (with sales charge) | –21.81 | % | –20.74 | % | 0.60 | % | 5.70 | % | |||||||||||
Average annual total return (without sales charge) | –17.45 | % | –16.32 | % | 1.69 | % | 6.65 | % | |||||||||||
MSCI World Index†† | |||||||||||||||||||
Average annual total return | –9.10 | % | –8.71 | % | 4.56 | % | 7.96 | % | |||||||||||
Russell Developed Index†† | |||||||||||||||||||
Average annual total return | –9.85 | % | –8.96 | % | 5.06 | % | 8.63 | % |
Returns shown for Class A shares for the periods prior to its inception are derived from the historical performance of Class I shares of the Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of the class. (Inception date: Class A — 8/30/13.)
Average annual total returns with sales charge shown for Class A shares have been adjusted to reflect the applicable sales charge of the class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Average annual total returns without sales charge do not reflect the sales charge. Had the sales charge been included, the Fund's returns would have been lower.
† The Fund invests primarily in U.S. and non-U.S. companies.
†† See index descriptions in the Fund Information section. Effective December 31, 2018, the Fund discontinued the use of the Russell Developed Index and replaced it with the MSCI World Index. The Russell Developed Index will be decommissioned effective December 31, 2018. The Fund believes that the use of the MSCI World Index provides a comparative benchmark.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
11
Fund Performance Data
INTERNATIONAL VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2018 | Six Months | 1 Year | Since 12/31/15* | ||||||||||||
Class I | |||||||||||||||
Average annual total return | –16.21 | % | –18.74 | % | 2.21 | % | |||||||||
MSCI World ex-USA Index†† | |||||||||||||||
Average annual total return | –11.64 | % | –14.09 | % | 3.11 | % | |||||||||
Russell Developed ex-U.S. Index†† | |||||||||||||||
Average annual total return | –12.32 | % | –14.22 | % | 3.73 | % |
† The Fund invests primarily in non-U.S. companies.
†† See index descriptions in the Fund Information section. Effective December 31, 2018, the Fund discontinued the use of the Russell Developed ex-U.S. Index and replaced it with the MSCI World ex-USA Index. The Russell Developed ex-U.S. Index will be decommissioned effective December 31, 2018. The Fund believes that the use of the MSCI World ex-USA Index provides a comparative benchmark.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
12
Fund Performance Data
VALUE OPPORTUNITIES FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2018 | Six Months | 1 Year | 5 Years | 10 Years | Since 12/31/02* | ||||||||||||||||||
Class I | |||||||||||||||||||||||
Average annual total return | –13.78 | % | –10.97 | % | 5.20 | % | 16.93 | % | 11.36 | % | |||||||||||||
Class A | |||||||||||||||||||||||
Average annual total return (with sales charge) | –18.39 | % | –15.85 | % | 3.81 | % | 16.01 | % | 10.76 | % | |||||||||||||
Average annual total return (without sales charge) | –13.88 | % | –11.19 | % | 4.93 | % | 16.64 | % | 11.13 | % | |||||||||||||
Class C | |||||||||||||||||||||||
Average annual total return (with CDSC) | –15.20 | % | –12.86 | % | 4.15 | % | 15.79 | % | 10.28 | % | |||||||||||||
Average annual total return (without CDSC) | –14.20 | % | –11.86 | % | 4.15 | % | 15.79 | % | 10.28 | % | |||||||||||||
S&P 500® Index†† | |||||||||||||||||||||||
Average annual total return | –6.85 | % | –4.38 | % | 8.49 | % | 13.12 | % | 8.97 | % | |||||||||||||
Russell 3000® Index†† | |||||||||||||||||||||||
Average annual total return | –8.20 | % | –5.24 | % | 7.91 | % | 13.18 | % | 9.21 | % | |||||||||||||
Russell 3000® Value Index†† | |||||||||||||||||||||||
Average annual total return | –7.51 | % | –8.58 | % | 5.77 | % | 11.12 | % | 8.40 | % |
Returns shown for Class C shares for the periods prior to its inception are derived from the historical performance of Class I shares of the Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of the class. (Inception date: Class C — 8/28/03.)
Average annual total returns with sales charge and CDSC shown for Class A and Class C shares, respectively, have been adjusted to reflect the applicable sales charges of each specific class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Class C shares have no adjustment for sales charges, but redemptions within one year of purchase may be subject to a CDSC of 1%. Average annual total returns without sales charge or CDSC do not reflect the sales charge. Had the sales charge or CDSC been included, the Fund's returns would have been lower.
† The Fund invests primarily in securities of companies with strong capital appreciation potential.
†† See index descriptions in the Fund Information section. Effective December 31, 2018, the Fund discontinued the use of the S&P 500® Index and replaced it with the Russell 3000® Index. The Fund believes that the use of the Russell 3000® Index provides a better comparative benchmark since it more appropriately reflects the securities in which the Fund may invest.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I and Class A.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
13
Fund Performance Data
CAPITAL INCOME FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2018 | Six Months | 1 Year | 5 Years | Since 12/31/10* | |||||||||||||||
Class I | |||||||||||||||||||
Average annual total return | –13.36 | % | –10.87 | % | 3.44 | % | 7.42 | % | |||||||||||
Class A | |||||||||||||||||||
Average annual total return (with sales charge) | –17.46 | % | –15.21 | % | 2.22 | % | 6.88 | % | |||||||||||
Average annual total return (without sales charge) | –13.32 | % | –10.97 | % | 3.22 | % | 7.53 | % | |||||||||||
S&P 500® Index†† | |||||||||||||||||||
Average annual total return | –6.85 | % | –4.38 | % | 8.49 | % | 11.32 | % | |||||||||||
ICE BofAML U.S. Corporate, Government and Mortgage Index†† | |||||||||||||||||||
Average annual total return | 1.65 | % | 0.00 | % | 2.61 | % | 2.85 | % |
Returns shown for Class A shares for the periods prior to its inception are derived from the historical performance of Class I shares of the Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of the class. (Inception date: Class A — 2/28/11.)
Average annual total returns with sales charge shown for Class A shares have been adjusted to reflect the applicable sales charge of the class. Returns for Class A reflect the maximum initial sales charge of 4.75%. Average annual total returns without sales charge do not reflect the sales charge. Had the sales charge been included, the Fund's returns would have been lower.
† The Fund invests primarily in dividend-paying equities and high yield fixed income securities.
†† See index descriptions in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
14
Fund Performance Data
HIGH YIELD FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2018 | Six Months | 1 Year | 5 Years | Since 3/31/09* | |||||||||||||||
Class I | |||||||||||||||||||
Average annual total return | –3.37 | % | –3.41 | % | 3.25 | % | 9.57 | % | |||||||||||
Class A | |||||||||||||||||||
Average annual total return (with sales charge) | –7.14 | % | –7.21 | % | 2.20 | % | 8.79 | % | |||||||||||
Average annual total return (without sales charge) | –3.53 | % | –3.63 | % | 2.99 | % | 9.22 | % | |||||||||||
Class C | |||||||||||||||||||
Average annual total return (with CDSC) | –4.86 | % | –5.46 | % | 2.22 | % | 8.46 | % | |||||||||||
Average annual total return (without CDSC) | –3.86 | % | –4.46 | % | 2.22 | % | 8.46 | % | |||||||||||
Class Z | |||||||||||||||||||
Average annual total return | –3.32 | % | –3.35 | % | 3.35 | % | 9.67 | % | |||||||||||
ICE BofAML BB-B U.S. High Yield Constrained Index†† | |||||||||||||||||||
Average annual total return | –1.58 | % | –2.04 | % | 3.88 | % | 9.56 | % |
Returns shown for Class A, Class C and Class Z shares for the periods prior to their inception are derived from the historical performance of Class I shares of the Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of Class A and Class C shares and lower total annual operating expenses of Class Z shares. (Inception dates: Class A — 5/29/09; Class C — 12/31/12; Class Z — 3/29/18.)
Average annual total returns with sales charge and CDSC shown for Class A and Class C shares, respectively, have been adjusted to reflect the applicable sales charges of each specific class. Returns for Class A reflect the maximum initial sales charge of 3.75%. Class C shares have no adjustment for sales charges, but redemptions within one year of purchase may be subject to a CDSC of 1%. Average annual total returns without sales charge or CDSC do not reflect the sales charges. Had the sales charge or CDSC been included, the Fund's returns would have been lower. Effective August 29, 2014, the Fund imposes a 2.00% redemption fee on shares that are redeemed or exchanged if they have been held for 90 days or less. Returns shown do not reflect the imposition of the redemption fee. Had the redemption fee been included, the Fund's returns would have been lower.
† The Fund invests primarily in high yield securities.
†† See index description in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
15
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Diversified Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
American International Group, Inc. | 5.42 | % | |||||
Wells Fargo & Company | 3.71 | % | |||||
Citigroup, Inc. | 3.71 | % | |||||
Hewlett Packard Enterprise Company | 3.66 | % | |||||
General Electric Company | 3.40 | % | |||||
Oracle Corp. | 3.05 | % | |||||
General Motors Company | 2.92 | % | |||||
Microsoft Corp. | 2.70 | % | |||||
Discovery, Inc. | 2.60 | % | |||||
Marathon Oil Corp. | 2.51 | % |
COMMON STOCKS — 99.48% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 9.30% Media — 6.96% | |||||||||||
CBS Corp. | 22,000 | $ | 961,840 | ||||||||
Comcast Corp. | 38,800 | 1,321,140 | |||||||||
Discovery, Inc. (a) | 98,500 | 2,273,380 | |||||||||
The Interpublic Group of Companies, Inc. | 20,600 | 424,978 | |||||||||
News Corp. | 64,700 | 734,345 | |||||||||
Omnicom Group, Inc. | 5,200 | 380,848 | |||||||||
6,096,531 | |||||||||||
Wireless Telecommunication Services — 2.34% | |||||||||||
Vodafone Group PLC — ADR | 106,463 | 2,052,607 | |||||||||
TOTAL COMMUNICATION SERVICES | 8,149,138 | ||||||||||
CONSUMER DISCRETIONARY — 6.66% Auto Components — 2.71% | |||||||||||
Adient PLC | 28,874 | 434,842 | |||||||||
The Goodyear Tire & Rubber Company | 44,500 | 908,245 | |||||||||
Magna International, Inc. | 22,700 | 1,031,715 | |||||||||
2,374,802 | |||||||||||
Automobiles — 3.66% | |||||||||||
General Motors Company | 76,500 | 2,558,925 | |||||||||
Harley-Davidson, Inc. | 19,000 | 648,280 | |||||||||
3,207,205 | |||||||||||
Specialty Retail — 0.29% | |||||||||||
Bed Bath & Beyond, Inc. | 22,300 | 252,436 | |||||||||
TOTAL CONSUMER DISCRETIONARY | 5,834,443 | ||||||||||
CONSUMER STAPLES — 4.43% Beverages — 1.50% | |||||||||||
PepsiCo, Inc. | 11,900 | 1,314,712 | |||||||||
Food Products — 1.92% | |||||||||||
Kellogg Company | 7,800 | 444,678 | |||||||||
Mondelez International, Inc. | 30,800 | 1,232,924 | |||||||||
1,677,602 |
Shares Held | Value | ||||||||||
Personal Products — 1.01% | |||||||||||
Unilever PLC — ADR | 17,000 | $ | 888,250 | ||||||||
TOTAL CONSUMER STAPLES | 3,880,564 | ||||||||||
ENERGY — 12.43% Energy Equipment & Services — 1.69% | |||||||||||
Halliburton Company | 23,500 | 624,630 | |||||||||
National Oilwell Varco, Inc. | 33,200 | 853,240 | |||||||||
1,477,870 | |||||||||||
Oil, Gas & Consumable Fuels — 10.74% | |||||||||||
Apache Corp. | 77,300 | 2,029,125 | |||||||||
Hess Corp. | 45,300 | 1,834,650 | |||||||||
Kosmos Energy Ltd. (a) | 75,900 | 308,913 | |||||||||
Marathon Oil Corp. | 153,400 | 2,199,756 | |||||||||
Marathon Petroleum Corp. | 8,622 | 508,784 | |||||||||
Murphy Oil Corp. | 46,700 | 1,092,313 | |||||||||
Royal Dutch Shell PLC — ADR | 24,662 | 1,437,055 | |||||||||
9,410,596 | |||||||||||
TOTAL ENERGY | 10,888,466 | ||||||||||
FINANCIALS — 30.89% Banks — 12.23% | |||||||||||
Bank of America Corp. | 82,322 | 2,028,414 | |||||||||
CIT Group, Inc. | 10,500 | 401,835 | |||||||||
Citigroup, Inc. | 62,374 | 3,247,190 | |||||||||
Citizens Financial Group, Inc. | 44,800 | 1,331,904 | |||||||||
Fifth Third Bancorp | 19,100 | 449,423 | |||||||||
Wells Fargo & Company | 70,534 | 3,250,207 | |||||||||
10,708,973 | |||||||||||
Capital Markets — 5.50% | |||||||||||
The Bank of New York Mellon Corp. | 15,600 | 734,292 | |||||||||
The Goldman Sachs Group, Inc. | 11,900 | 1,987,895 | |||||||||
Morgan Stanley | 11,400 | 452,010 | |||||||||
State Street Corp. | 26,100 | 1,646,127 | |||||||||
4,820,324 |
The accompanying notes are an integral part of these financial statements.
16
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Consumer Finance — 4.82% | |||||||||||
Ally Financial, Inc. | 30,100 | $ | 682,066 | ||||||||
Capital One Financial Corp. | 21,200 | 1,602,508 | |||||||||
Discover Financial Services | 21,200 | 1,250,376 | |||||||||
Synchrony Financial | 29,400 | 689,724 | |||||||||
4,224,674 | |||||||||||
Diversified Financial Services — 1.41% | |||||||||||
AXA Equitable Holdings, Inc. | 74,100 | 1,232,283 | |||||||||
Insurance — 6.93% | |||||||||||
American International Group, Inc. | 120,500 | 4,748,905 | |||||||||
The Travelers Companies, Inc. | 11,000 | 1,317,250 | |||||||||
6,066,155 | |||||||||||
TOTAL FINANCIALS | 27,052,409 | ||||||||||
HEALTH CARE — 6.22% Biotechnology — 0.83% | |||||||||||
Biogen, Inc. (a) | 2,400 | 722,208 | |||||||||
Health Care Equipment & Supplies — 1.86% | |||||||||||
Medtronic PLC | 12,582 | 1,144,459 | |||||||||
Zimmer Biomet Holdings, Inc. | 4,700 | 487,484 | |||||||||
1,631,943 | |||||||||||
Health Care Providers & Services — 0.75% | |||||||||||
Anthem, Inc. | 2,500 | 656,575 | |||||||||
Pharmaceuticals — 2.78% | |||||||||||
GlaxoSmithKline PLC — ADR | 36,300 | 1,387,023 | |||||||||
Sanofi — ADR | 24,100 | 1,046,181 | |||||||||
2,433,204 | |||||||||||
TOTAL HEALTH CARE | 5,443,930 | ||||||||||
INDUSTRIALS — 10.90% Aerospace & Defense — 0.42% | |||||||||||
Embraer SA — ADR | 16,400 | 362,932 | |||||||||
Building Products — 1.45% | |||||||||||
Johnson Controls International PLC | 42,647 | 1,264,484 | |||||||||
Electrical Equipment — 0.75% | |||||||||||
Eaton Corp. PLC | 9,600 | 659,136 | |||||||||
Industrial Conglomerates — 3.40% | |||||||||||
General Electric Company | 393,500 | 2,978,795 | |||||||||
Machinery — 4.88% | |||||||||||
CNH Industrial NV | 192,700 | 1,774,767 | |||||||||
Cummins, Inc. | 15,000 | 2,004,600 | |||||||||
PACCAR, Inc. | 8,700 | 497,118 | |||||||||
4,276,485 | |||||||||||
TOTAL INDUSTRIALS | 9,541,832 |
Shares Held | Value | ||||||||||
INFORMATION TECHNOLOGY — 14.54% Communications Equipment — 1.16% | |||||||||||
Telefonaktiebolaget LM Ericsson — ADR | 114,500 | $ | 1,015,615 | ||||||||
Electronic Equipment, Instruments & Components — 2.60% | |||||||||||
Corning, Inc. | 50,500 | 1,525,605 | |||||||||
TE Connectivity Ltd. | 10,000 | 756,300 | |||||||||
2,281,905 | |||||||||||
Semiconductors & Semiconductor Equipment — 0.78% | |||||||||||
Texas Instruments, Inc. | 7,200 | 680,400 | |||||||||
Software — 6.34% | |||||||||||
Microsoft Corp. | 23,300 | 2,366,581 | |||||||||
Oracle Corp. | 59,100 | 2,668,365 | |||||||||
Teradata Corp. (a) | 13,500 | 517,860 | |||||||||
5,552,806 | |||||||||||
Technology Hardware, Storage & Peripherals — 3.66% | |||||||||||
Hewlett Packard Enterprise Company | 242,800 | 3,207,388 | |||||||||
TOTAL INFORMATION TECHNOLOGY | 12,738,114 | ||||||||||
MATERIALS — 1.52% Containers & Packaging — 1.52% | |||||||||||
International Paper Company | 33,000 | 1,331,880 | |||||||||
TOTAL MATERIALS | 1,331,880 | ||||||||||
UTILITIES — 2.59% Electric Utilities — 2.59% | |||||||||||
PPL Corp. | 39,500 | 1,119,035 | |||||||||
The Southern Company | 26,100 | 1,146,312 | |||||||||
TOTAL UTILITIES | 2,265,347 | ||||||||||
Total common stocks (Cost $117,300,604) | 87,126,123 | ||||||||||
Total long-term investments (Cost $117,300,604) | 87,126,123 | ||||||||||
SHORT-TERM INVESTMENTS — 0.74% | Principal Amount | ||||||||||
Time Deposits — 0.74% | |||||||||||
JPMorgan Chase & Company, 1.77%, 01/02/2019* | $ | 648,394 | 648,394 | ||||||||
Total short-term investments (Cost $648,394) | 648,394 | ||||||||||
Total investments — 100.22% (Cost $117,948,998) | 87,774,517 | ||||||||||
Liabilities in excess of other assets — (0.22)% | (189,134 | ) | |||||||||
Net assets — 100.00% | $ | 87,585,383 |
(a) — Non-income producing security.
ADR — American Depositary Receipt
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
17
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Large Cap Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
American International Group, Inc. | 5.10 | % | |||||
Hewlett Packard Enterprise Company | 4.00 | % | |||||
Citigroup, Inc. | 3.95 | % | |||||
Wells Fargo & Company | 3.89 | % | |||||
General Electric Company | 3.35 | % | |||||
General Motors Company | 3.22 | % | |||||
Oracle Corp. | 3.07 | % | |||||
The Goldman Sachs Group, Inc. | 3.01 | % | |||||
Microsoft Corp. | 2.78 | % | |||||
Discovery, Inc. | 2.60 | % |
COMMON STOCKS — 96.77% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 8.34% Media — 5.79% | |||||||||||
CBS Corp. | 108,000 | $ | 4,721,760 | ||||||||
Comcast Corp. | 230,400 | 7,845,120 | |||||||||
Discovery, Inc. (a) | 445,300 | 10,277,524 | |||||||||
22,844,404 | |||||||||||
Wireless Telecommunication Services — 2.55% | |||||||||||
Vodafone Group PLC — ADR | 522,044 | 10,065,008 | |||||||||
TOTAL COMMUNICATION SERVICES | 32,909,412 | ||||||||||
CONSUMER DISCRETIONARY — 6.40% Auto Components — 2.11% | |||||||||||
Adient PLC | 177,591 | 2,674,521 | |||||||||
Magna International, Inc. | 124,600 | 5,663,070 | |||||||||
8,337,591 | |||||||||||
Automobiles — 3.95% | |||||||||||
General Motors Company | 379,400 | 12,690,930 | |||||||||
Harley-Davidson, Inc. | 85,400 | 2,913,848 | |||||||||
15,604,778 | |||||||||||
Specialty Retail — 0.34% | |||||||||||
Bed Bath & Beyond, Inc. | 118,300 | 1,339,156 | |||||||||
TOTAL CONSUMER DISCRETIONARY | 25,281,525 | ||||||||||
CONSUMER STAPLES — 3.93% Beverages — 1.47% | |||||||||||
PepsiCo, Inc. | 52,700 | 5,822,296 | |||||||||
Food Products — 1.48% | |||||||||||
Mondelez International, Inc. | 145,500 | 5,824,365 | |||||||||
Personal Products — 0.98% | |||||||||||
Unilever PLC — ADR | 74,000 | 3,866,500 | |||||||||
TOTAL CONSUMER STAPLES | 15,513,161 | ||||||||||
ENERGY — 12.68% Energy Equipment & Services — 1.50% | |||||||||||
National Oilwell Varco, Inc. | 230,300 | 5,918,710 |
Shares Held | Value | ||||||||||
Oil, Gas & Consumable Fuels — 11.18% | |||||||||||
Apache Corp. | 332,600 | $ | 8,730,750 | ||||||||
Hess Corp. | 201,900 | 8,176,950 | |||||||||
Marathon Oil Corp. | 686,300 | 9,841,542 | |||||||||
Marathon Petroleum Corp. | 39,793 | 2,348,185 | |||||||||
Murphy Oil Corp. | 336,900 | 7,880,091 | |||||||||
Royal Dutch Shell PLC — ADR | 122,772 | 7,153,925 | |||||||||
44,131,443 | |||||||||||
TOTAL ENERGY | 50,050,153 | ||||||||||
FINANCIALS — 29.41% Banks — 12.05% | |||||||||||
Bank of America Corp. | 357,049 | 8,797,688 | |||||||||
Citigroup, Inc. | 299,288 | 15,580,933 | |||||||||
Citizens Financial Group, Inc. | 263,800 | 7,842,774 | |||||||||
Wells Fargo & Company | 332,863 | 15,338,327 | |||||||||
47,559,722 | |||||||||||
Capital Markets — 5.52% | |||||||||||
The Goldman Sachs Group, Inc. | 71,200 | 11,893,960 | |||||||||
State Street Corp. | 157,000 | 9,901,990 | |||||||||
21,795,950 | |||||||||||
Consumer Finance — 3.72% | |||||||||||
Capital One Financial Corp. | 111,200 | 8,405,608 | |||||||||
Discover Financial Services | 106,200 | 6,263,676 | |||||||||
14,669,284 | |||||||||||
Diversified Financial Services — 1.54% | |||||||||||
AXA Equitable Holdings, Inc. | 366,500 | 6,094,895 | |||||||||
Insurance — 6.58% | |||||||||||
American International Group, Inc. | 510,900 | 20,134,569 | |||||||||
The Travelers Companies, Inc. | 48,800 | 5,843,800 | |||||||||
25,978,369 | |||||||||||
TOTAL FINANCIALS | 116,098,220 |
The accompanying notes are an integral part of these financial statements.
18
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Large Cap Value Fund (Unaudited)
Shares Held | Value | ||||||||||
HEALTH CARE — 6.57% Health Care Equipment & Supplies — 2.89% | |||||||||||
Koninklijke Philips NV | 55,066 | $ | 1,933,367 | ||||||||
Medtronic PLC | 64,100 | 5,830,536 | |||||||||
Zimmer Biomet Holdings, Inc. | 35,100 | 3,640,572 | |||||||||
11,404,475 | |||||||||||
Health Care Providers & Services — 0.98% | |||||||||||
Anthem, Inc. | 14,800 | 3,886,924 | |||||||||
Pharmaceuticals — 2.70% | |||||||||||
GlaxoSmithKline PLC — ADR | 156,500 | 5,979,865 | |||||||||
Sanofi — ADR | 107,400 | 4,662,234 | |||||||||
10,642,099 | |||||||||||
TOTAL HEALTH CARE | 25,933,498 | ||||||||||
INDUSTRIALS — 11.16% Aerospace & Defense — 0.50% | |||||||||||
Embraer SA — ADR | 88,500 | 1,958,505 | |||||||||
Building Products — 1.96% | |||||||||||
Johnson Controls International PLC | 260,519 | 7,724,388 | |||||||||
Industrial Conglomerates — 3.35% | |||||||||||
General Electric Company | 1,747,500 | 13,228,575 | |||||||||
Machinery — 4.86% | |||||||||||
CNH Industrial NV | 856,900 | 7,892,049 | |||||||||
Cummins, Inc. | 70,000 | 9,354,800 | |||||||||
PACCAR, Inc. | 34,300 | 1,959,902 | |||||||||
19,206,751 | |||||||||||
Professional Services — 0.49% | |||||||||||
ManpowerGroup, Inc. | 29,900 | 1,937,520 | |||||||||
TOTAL INDUSTRIALS | 44,055,739 | ||||||||||
INFORMATION TECHNOLOGY — 13.97% Communications Equipment — 1.33% | |||||||||||
Telefonaktiebolaget LM Ericsson — ADR | 594,700 | 5,274,989 | |||||||||
Electronic Equipment, Instruments & Components — 1.79% | |||||||||||
Corning, Inc. | 234,000 | 7,069,140 | |||||||||
Semiconductors & Semiconductor Equipment — 1.00% | |||||||||||
Texas Instruments, Inc. | 41,700 | 3,940,650 | |||||||||
Software — 5.85% | |||||||||||
Microsoft Corp. | 107,800 | 10,949,246 | |||||||||
Oracle Corp. | 268,700 | 12,131,805 | |||||||||
23,081,051 | |||||||||||
Technology Hardware, Storage & Peripherals — 4.00% | |||||||||||
Hewlett Packard Enterprise Company | 1,194,100 | 15,774,061 | |||||||||
TOTAL INFORMATION TECHNOLOGY | 55,139,891 |
Shares Held | Value | ||||||||||
MATERIALS — 1.75% Containers & Packaging — 1.75% | |||||||||||
International Paper Company | 171,000 | $ | 6,901,560 | ||||||||
TOTAL MATERIALS | 6,901,560 | ||||||||||
UTILITIES — 2.56% Electric Utilities — 2.56% | |||||||||||
PPL Corp. | 178,100 | 5,045,573 | |||||||||
The Southern Company | 114,800 | 5,042,015 | |||||||||
TOTAL UTILITIES | 10,087,588 | ||||||||||
Total common stocks (Cost $482,209,185) | 381,970,747 | ||||||||||
Total long-term investments (Cost $482,209,185) | 381,970,747 | ||||||||||
SHORT-TERM INVESTMENTS — 3.31% | Principal Amount | ||||||||||
Time Deposits — 3.31% | |||||||||||
National Australia Bank Ltd., 1.77%, 01/02/2019* | $ | 13,049,677 | 13,049,677 | ||||||||
Total short-term investments (Cost $13,049,677) | 13,049,677 | ||||||||||
Total investments — 100.08% (Cost $495,258,862) | 395,020,424 | ||||||||||
Liabilities in excess of other assets — (0.08)% | (320,605 | ) | |||||||||
Net assets — 100.00% | $ | 394,699,819 |
(a) — Non-income producing security.
ADR — American Depositary Receipt
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
19
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Mid-Cap Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
Whiting Petroleum Corp. | 4.86 | % | |||||
Hewlett Packard Enterprise Company | 4.51 | % | |||||
Citizens Financial Group, Inc. | 4.42 | % | |||||
CIT Group, Inc. | 3.62 | % | |||||
Popular, Inc. | 3.49 | % | |||||
The Goodyear Tire & Rubber Company | 3.05 | % | |||||
Discovery, Inc. | 3.03 | % | |||||
Kosmos Energy Ltd. | 3.00 | % | |||||
Avnet, Inc. | 2.97 | % | |||||
Office Depot, Inc. | 2.79 | % |
COMMON STOCKS — 99.95% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 5.05% Media — 5.05% | |||||||||||
CBS Corp. | 154,300 | $ | 6,745,996 | ||||||||
Discovery, Inc. (a) | 1,745,300 | 40,281,524 | |||||||||
The Interpublic Group of Companies, Inc. | 328,900 | 6,785,207 | |||||||||
News Corp. | 1,183,600 | 13,433,860 | |||||||||
TOTAL COMMUNICATION SERVICES | 67,246,587 | ||||||||||
CONSUMER DISCRETIONARY — 12.45% Auto Components — 5.57% | |||||||||||
Adient PLC | 827,500 | 12,462,150 | |||||||||
The Goodyear Tire & Rubber Company | 1,986,000 | 40,534,260 | |||||||||
Magna International, Inc. | 465,300 | 21,147,885 | |||||||||
74,144,295 | |||||||||||
Household Durables — 2.71% | |||||||||||
TRI Pointe Group, Inc. (a) | 3,300,400 | 36,073,372 | |||||||||
Specialty Retail — 4.17% | |||||||||||
Bed Bath & Beyond, Inc. | 1,618,400 | 18,320,288 | |||||||||
Office Depot, Inc. | 14,396,200 | 37,142,196 | |||||||||
55,462,484 | |||||||||||
TOTAL CONSUMER DISCRETIONARY | 165,680,151 | ||||||||||
CONSUMER STAPLES — 1.81% Food Products — 1.81% | |||||||||||
Bunge Ltd. | 451,000 | 24,101,440 | |||||||||
TOTAL CONSUMER STAPLES | 24,101,440 | ||||||||||
ENERGY — 20.08% | |||||||||||
Energy Equipment & Services — 4.79% | |||||||||||
C&J Energy Services, Inc. (a) | 2,058,700 | 27,792,450 | |||||||||
Frank's International NV (a) | 1,204,400 | 6,286,968 | |||||||||
McDermott International, Inc. (a) | 2,138,633 | 13,986,662 | |||||||||
Superior Energy Services, Inc. (a) | 4,691,800 | 15,717,530 | |||||||||
63,783,610 |
Shares Held | Value | ||||||||||
Oil, Gas & Consumable Fuels — 15.29% | |||||||||||
Apache Corp. | 659,200 | $ | 17,304,000 | ||||||||
Cairn Energy PLC (a) (v) | 19,353,700 | 36,929,586 | |||||||||
Hess Corp. | 77,300 | 3,130,650 | |||||||||
Kosmos Energy Ltd. (a) | 9,807,300 | 39,915,711 | |||||||||
Marathon Oil Corp. | 256,500 | 3,678,210 | |||||||||
Murphy Oil Corp. | 512,500 | 11,987,375 | |||||||||
Ophir Energy PLC (a) (o) | 56,578,900 | 25,745,217 | |||||||||
Whiting Petroleum Corp. (a) | 2,852,825 | 64,730,599 | |||||||||
203,421,348 | |||||||||||
TOTAL ENERGY | 267,204,958 | ||||||||||
FINANCIALS — 25.46% Banks — 12.96% | |||||||||||
CIT Group, Inc. | 1,260,324 | 48,232,599 | |||||||||
Citizens Financial Group, Inc. | 1,979,900 | 58,862,427 | |||||||||
Fifth Third Bancorp | 431,700 | 10,157,901 | |||||||||
First Horizon National Corp. | 668,400 | 8,796,144 | |||||||||
Popular, Inc. | 984,000 | 46,464,480 | |||||||||
172,513,551 | |||||||||||
Capital Markets — 0.57% | |||||||||||
State Street Corp. | 120,600 | 7,606,242 | |||||||||
Consumer Finance — 6.49% | |||||||||||
Ally Financial, Inc. | 926,900 | 21,003,554 | |||||||||
Discover Financial Services | 315,300 | 18,596,394 | |||||||||
Santander Consumer USA Holdings, Inc. | 627,400 | 11,035,966 | |||||||||
SLM Corp. (a) | 1,243,600 | 10,334,316 | |||||||||
Synchrony Financial | 1,080,200 | 25,341,492 | |||||||||
86,311,722 | |||||||||||
Diversified Financial Services — 1.83% | |||||||||||
AXA Equitable Holdings, Inc. | 1,465,400 | 24,369,602 |
The accompanying notes are an integral part of these financial statements.
20
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Mid-Cap Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Insurance — 3.61% | |||||||||||
Alleghany Corp. | 12,000 | $ | 7,479,840 | ||||||||
CNO Financial Group, Inc. | 1,909,300 | 28,410,384 | |||||||||
Enstar Group Ltd. (a) | 72,100 | 12,081,797 | |||||||||
47,972,021 | |||||||||||
TOTAL FINANCIALS | 338,773,138 | ||||||||||
HEALTH CARE — 1.81% Health Care Equipment & Supplies — 0.56% | |||||||||||
Zimmer Biomet Holdings, Inc. | 71,400 | 7,405,608 | |||||||||
Pharmaceuticals — 1.25% | |||||||||||
Mallinckrodt PLC (a) | 1,056,400 | 16,691,120 | |||||||||
TOTAL HEALTH CARE | 24,096,728 | ||||||||||
INDUSTRIALS — 14.39% Aerospace & Defense — 2.22% | |||||||||||
Embraer SA — ADR | 1,336,000 | 29,565,680 | |||||||||
Air Freight & Logistics — 2.38% | |||||||||||
Royal Mail PLC (v) | 9,139,200 | 31,721,129 | |||||||||
Construction & Engineering — 1.15% | |||||||||||
KBR, Inc. | 1,003,500 | 15,233,130 | |||||||||
Machinery — 4.33% | |||||||||||
Allison Transmission Holdings, Inc. | 181,100 | 7,952,101 | |||||||||
Cummins, Inc. | 151,600 | 20,259,824 | |||||||||
Navistar International Corp. (a) | 1,130,700 | 29,341,665 | |||||||||
57,553,590 | |||||||||||
Professional Services — 1.10% | |||||||||||
ManpowerGroup, Inc. | 225,600 | 14,618,880 | |||||||||
Road & Rail — 3.21% | |||||||||||
AMERCO | 99,900 | 32,778,189 | |||||||||
Avis Budget Group, Inc. (a) | 444,300 | 9,987,864 | |||||||||
42,766,053 | |||||||||||
TOTAL INDUSTRIALS | 191,458,462 | ||||||||||
INFORMATION TECHNOLOGY — 13.78% Communications Equipment — 4.61% | |||||||||||
ARRIS International PLC (a) | 1,090,100 | 33,324,357 | |||||||||
CommScope Holding Company, Inc. (a) | 956,600 | 15,678,674 | |||||||||
Telefonaktiebolaget LM Ericsson — ADR | 1,388,500 | 12,315,995 | |||||||||
61,319,026 | |||||||||||
Electronic Equipment, Instruments & Components — 4.02% | |||||||||||
Avnet, Inc. | 1,096,600 | 39,587,260 | |||||||||
Corning, Inc. | 459,900 | 13,893,579 | |||||||||
53,480,839 | |||||||||||
Software — 0.64% | |||||||||||
Teradata Corp. (a) | 222,300 | 8,527,428 |
Shares Held | Value | ||||||||||
Technology Hardware, Storage & Peripherals — 4.51% | |||||||||||
Hewlett Packard Enterprise Company | 4,545,200 | $ | 60,042,092 | ||||||||
TOTAL INFORMATION TECHNOLOGY | 183,369,385 | ||||||||||
REAL ESTATE — 3.06% Equity Real Estate Investment Trusts — 3.06% | |||||||||||
Colony Capital, Inc. | 2,207,500 | 10,331,100 | |||||||||
The GEO Group, Inc. | 1,545,950 | 30,455,215 | |||||||||
TOTAL REAL ESTATE | 40,786,315 | ||||||||||
UTILITIES — 2.06% Electric Utilities — 1.53% | |||||||||||
PPL Corp. | 715,600 | 20,272,948 | |||||||||
Independent Power and Renewable Electricity Producers — 0.53% | |||||||||||
NRG Energy, Inc. | 179,100 | 7,092,361 | |||||||||
TOTAL UTILITIES | 27,365,309 | ||||||||||
Total common stocks (Cost $1,657,529,570) | 1,330,082,473 | ||||||||||
Total long-term investments (Cost $1,657,529,570) | 1,330,082,473 | ||||||||||
SHORT-TERM INVESTMENTS — 0.39% | Principal Amount | ||||||||||
Time Deposits — 0.39% | |||||||||||
Banco Bilbao Vizcaya Argentaria SA, 1.77%, 01/02/2019* | $ | 5,233,789 | 5,233,789 | ||||||||
Brown Brothers Harriman & Co., 0.37%, 01/02/2019* | GBP | 195 | 248 | ||||||||
Total short-term investments (Cost $5,234,042) | 5,234,037 | ||||||||||
Total investments — 100.34% (Cost $1,662,763,612) | 1,335,316,510 | ||||||||||
Liabilities in excess of other assets — (0.34)% | (4,581,882 | ) | |||||||||
Net assets — 100.00% | $ | 1,330,734,628 |
(a) — Non-income producing security.
(o) — Affiliated issuer. See Note 6 in Notes to the Financial Statements.
(v) — Security was fair valued as a result of market movements following the close of local trading using a third-party vendor's proprietary fair value pricing model. The total market value of these securities was $68,650,715 which represented 5.16% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
ADR — American Depositary Receipt
GBP — British Pound
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
21
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Small Cap Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
First Hawaiian, Inc. | 5.40 | % | |||||
Enstar Group Ltd. | 5.23 | % | |||||
Seritage Growth Properties | 4.88 | % | |||||
Avnet, Inc. | 4.06 | % | |||||
WestJet Airlines Ltd. | 3.99 | % | |||||
Popular, Inc. | 3.82 | % | |||||
Hanger, Inc. | 3.48 | % | |||||
Matson, Inc. | 3.38 | % | |||||
Masonite International Corp. | 3.22 | % | |||||
First Horizon National Corp. | 3.09 | % |
COMMON STOCKS — 96.23% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 1.12% Media — 1.12% | |||||||||||
MDC Partners, Inc. (a) | 2,736,800 | $ | 7,143,048 | ||||||||
TOTAL COMMUNICATION SERVICES | 7,143,048 | ||||||||||
CONSUMER DISCRETIONARY — 5.95% Household Durables — 1.52% | |||||||||||
TRI Pointe Group, Inc. (a) | 890,700 | 9,735,351 | |||||||||
Specialty Retail — 4.43% | |||||||||||
Group 1 Automotive, Inc. | 65,800 | 3,468,976 | |||||||||
Office Depot, Inc. | 4,530,500 | 11,688,690 | |||||||||
Sonic Automotive, Inc. | 959,500 | 13,202,720 | |||||||||
28,360,386 | |||||||||||
TOTAL CONSUMER DISCRETIONARY | 38,095,737 | ||||||||||
ENERGY — 8.28% Energy Equipment & Services — 4.61% | |||||||||||
C&J Energy Services, Inc. (a) | 621,300 | 8,387,550 | |||||||||
Frank's International NV (a) | 3,457,300 | 18,047,106 | |||||||||
Key Energy Services, Inc. (a) | 254,900 | 527,643 | |||||||||
McDermott International, Inc. (a) | 155,800 | 1,018,932 | |||||||||
Nine Energy Service, Inc. (a) | 26,700 | 601,818 | |||||||||
Quintana Energy Services, Inc. (a) | 277,700 | 960,842 | |||||||||
29,543,891 | |||||||||||
Oil, Gas & Consumable Fuels — 3.67% | |||||||||||
Altus Midstream Company (a) (l) | 122,600 | 947,698 | |||||||||
Berry Petroleum Corp. | 294,300 | 2,575,125 | |||||||||
Cairn Energy PLC (a) (v) | 734,400 | 1,401,339 | |||||||||
Kosmos Energy Ltd. (a) | 1,655,300 | 6,737,071 | |||||||||
Rockhopper Exploration PLC (a) (v) | 5,054,700 | 1,354,968 | |||||||||
Talos Energy, Inc. (a) | 62,200 | 1,015,104 | |||||||||
Whiting Petroleum Corp. (a) | 416,825 | 9,457,759 | |||||||||
23,489,064 | |||||||||||
TOTAL ENERGY | 53,032,955 |
Shares Held | Value | ||||||||||
FINANCIALS — 32.81% Banks — 16.98% | |||||||||||
Associated Banc-Corp | 367,700 | $ | 7,276,783 | ||||||||
The Bank of NT Butterfield & Son Ltd. | 488,100 | 15,301,935 | |||||||||
First Hawaiian, Inc. | 1,535,700 | 34,568,607 | |||||||||
First Horizon National Corp. | 1,504,731 | 19,802,260 | |||||||||
Investors Bancorp, Inc. | 258,000 | 2,683,200 | |||||||||
Popular, Inc. | 517,900 | 24,455,238 | |||||||||
TCF Financial Corp. | 242,900 | 4,734,121 | |||||||||
108,822,144 | |||||||||||
Capital Markets — 2.67% | |||||||||||
BrightSphere Investment Group PLC | 666,700 | 7,120,356 | |||||||||
Stifel Financial Corp. | 240,800 | 9,973,936 | |||||||||
17,094,292 | |||||||||||
Consumer Finance — 1.44% | |||||||||||
SLM Corp. (a) | 1,111,600 | 9,237,396 | |||||||||
Insurance — 11.21% | |||||||||||
CNO Financial Group, Inc. | 1,199,000 | 17,841,120 | |||||||||
Enstar Group Ltd. (a) | 199,979 | 33,510,481 | |||||||||
Global Indemnity Ltd. | 381,636 | 13,826,672 | |||||||||
Horace Mann Educators Corp. | 177,300 | 6,639,885 | |||||||||
71,818,158 | |||||||||||
Thrifts & Mortgage Finance — 0.51% | |||||||||||
Luther Burbank Corp. | 251,200 | 2,265,824 | |||||||||
TFS Financial Corp. | 61,700 | 995,221 | |||||||||
3,261,045 | |||||||||||
TOTAL FINANCIALS | 210,233,035 | ||||||||||
HEALTH CARE — 3.48% Health Care Providers & Services — 3.48% | |||||||||||
Hanger, Inc. (a) | 1,177,500 | 22,313,625 | |||||||||
TOTAL HEALTH CARE | 22,313,625 |
The accompanying notes are an integral part of these financial statements.
22
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Small Cap Value Fund (Unaudited)
Shares Held | Value | ||||||||||
INDUSTRIALS — 22.39% Aerospace & Defense — 2.68% | |||||||||||
Embraer SA — ADR | 774,600 | $ | 17,141,898 | ||||||||
Airlines — 3.99% | |||||||||||
WestJet Airlines Ltd. | 1,938,400 | 25,557,574 | |||||||||
Building Products — 3.63% | |||||||||||
Armstrong Flooring, Inc. (a) | 224,800 | 2,661,632 | |||||||||
Masonite International Corp. (a) | 459,500 | 20,599,385 | |||||||||
23,261,017 | |||||||||||
Commercial Services & Supplies — 1.26% | |||||||||||
Quad/Graphics, Inc. | 654,100 | 8,058,512 | |||||||||
Construction & Engineering — 3.42% | |||||||||||
KBR, Inc. | 613,700 | 9,315,966 | |||||||||
Tutor Perini Corp. (a) | 789,200 | 12,603,524 | |||||||||
21,919,490 | |||||||||||
Machinery — 2.52% | |||||||||||
EnPro Industries, Inc. | 43,200 | 2,596,320 | |||||||||
Miller Industries, Inc. | 390,400 | 10,540,800 | |||||||||
Navistar International Corp. (a) | 116,300 | 3,017,985 | |||||||||
16,155,105 | |||||||||||
Marine — 3.38% | |||||||||||
Matson, Inc. | 676,400 | 21,658,328 | |||||||||
Professional Services — 0.46% | |||||||||||
Hudson Global, Inc. (a) (o) | 2,187,600 | 2,953,260 | |||||||||
Trading Companies & Distributors — 1.05% | |||||||||||
Rush Enterprises, Inc. | 195,400 | 6,737,392 | |||||||||
TOTAL INDUSTRIALS | 143,442,576 | ||||||||||
INFORMATION TECHNOLOGY — 8.60% Communications Equipment — 2.69% | |||||||||||
ARRIS International PLC (a) | 159,200 | 4,866,744 | |||||||||
Casa Systems, Inc. (a) | 415,900 | 5,460,767 | |||||||||
CommScope Holding Company, Inc. (a) | 423,600 | 6,942,804 | |||||||||
17,270,315 | |||||||||||
Electronic Equipment, Instruments & Components — 4.52% | |||||||||||
Avnet, Inc. | 720,200 | 25,999,220 | |||||||||
Belden, Inc. | 71,400 | 2,982,378 | |||||||||
28,981,598 | |||||||||||
Semiconductors & Semiconductor Equipment — 1.39% | |||||||||||
Diodes, Inc. (a) | 275,200 | 8,877,952 | |||||||||
TOTAL INFORMATION TECHNOLOGY | 55,129,865 | ||||||||||
MATERIALS — 0.03% Metals & Mining — 0.03% | |||||||||||
Elah Holdings, Inc. (a) (i) | 2,604 | 156,240 | |||||||||
Noranda Aluminum Holding Corp. (a) (o) | 800,300 | 13,205 | |||||||||
TOTAL MATERIALS | 169,445 |
Shares Held | Value | ||||||||||
REAL ESTATE — 8.79% Equity Real Estate Investment Trusts — 8.79% | |||||||||||
Colony Capital, Inc. | 699,700 | $ | 3,274,596 | ||||||||
The GEO Group, Inc. | 711,144 | 14,009,537 | |||||||||
Granite Real Estate Investment Trust | 199,100 | 7,746,981 | |||||||||
Seritage Growth Properties (l) | 966,900 | 31,259,877 | |||||||||
TOTAL REAL ESTATE | 56,290,991 | ||||||||||
UTILITIES — 4.78% Electric Utilities — 4.78% | |||||||||||
Evergy, Inc. | 284,592 | 16,156,288 | |||||||||
Portland General Electric Company | 316,200 | 14,497,770 | |||||||||
TOTAL UTILITIES | 30,654,058 | ||||||||||
Total common stocks (Cost $699,029,328) | 616,505,335 | ||||||||||
Total long-term investments (Cost $699,029,328) | 616,505,335 | ||||||||||
COLLATERAL FOR SECURITIES ON LOAN — 3.76% | |||||||||||
Money Market Funds — 3.76% | |||||||||||
Invesco Government & Agency Portfolio — Institutional Class, 2.30%^ | 24,116,823 | 24,116,823 | |||||||||
Total collateral for securities on loan (Cost $24,116,823) | 24,116,823 | ||||||||||
SHORT-TERM INVESTMENTS — 3.82% | Principal Amount | ||||||||||
Time Deposits — 3.82% | |||||||||||
Australia and New Zealand Banking Group Ltd., 1.77%, 01/02/2019* | $ | 13,191,968 | 13,191,968 | ||||||||
BNP Paribas, 1.77%, 01/02/2019* | 11,121,180 | 11,121,180 | |||||||||
Royal Bank of Canada, 0.84%, 01/02/2019* | CAD | 230,741 | 169,017 | ||||||||
Total short-term investments (Cost $24,482,087) | 24,482,165 | ||||||||||
Total investments — 103.81% (Cost $747,628,238) | 665,104,323 | ||||||||||
Liabilities in excess of other assets — (3.81)% | (24,421,895 | ) | |||||||||
Net assets — 100.00% | $ | 640,682,428 |
(a) — Non-income producing security.
(i) — Illiquid security.
(l) — All or a portion of this security is on loan. The total market value of securities on loan was $23,615,707. The remaining contractual maturity of all of the securities lending transactions is overnight and continuous.
(o) — Affiliated issuer. See Note 6 in Notes to the Financial Statements.
(v) — Security was fair valued as a result of market movements following the close of local trading using a third-party vendor's proprietary fair value pricing model. The total market value of these securities was $2,756,307, which represented 0.43% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
ADR — American Depositary Receipt
CAD — Canadian Dollar
^ — Rate shown is the 7-day yield as of December 31, 2018.
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
23
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Small Cap Diversified Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
Fidelity Southern Corp. | 0.43 | % | |||||
MDC Partners, Inc. | 0.43 | % | |||||
Whiting Petroleum Corp. | 0.43 | % | |||||
AllianceBernstein Holding LP | 0.42 | % | |||||
Kosmos Energy Ltd. | 0.42 | % | |||||
Dycom Industries, Inc. | 0.41 | % | |||||
Oceaneering International, Inc. | 0.41 | % | |||||
Smart Sand, Inc. | 0.41 | % | |||||
Caesarstone Ltd. | 0.41 | % | |||||
SM Energy Company | 0.41 | % |
COMMON STOCKS — 95.85% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 2.99% Diversified Telecommunication Services — 0.29% | |||||||||||
IDT Corp. (a) | 18,983 | $ | 117,505 | ||||||||
Entertainment — 0.19% | |||||||||||
The Marcus Corp. | 1,942 | 76,709 | |||||||||
Interactive Media & Services — 0.19% | |||||||||||
Cars.com, Inc. (a) | 3,453 | 74,240 | |||||||||
Media — 2.32% | |||||||||||
Entercom Communications Corp. | 13,255 | 75,686 | |||||||||
Entravision Communications Corp. | 41,365 | 120,372 | |||||||||
Gray Television, Inc. (a) | 2,531 | 37,307 | |||||||||
MDC Partners, Inc. (a) | 65,071 | 169,836 | |||||||||
Meredith Corp. | 3,045 | 158,157 | |||||||||
MSG Networks, Inc. (a) | 6,689 | 157,593 | |||||||||
Nexstar Media Group, Inc. | 1,033 | 81,235 | |||||||||
Scholastic Corp. | 2,009 | 80,882 | |||||||||
TEGNA, Inc. | 3,537 | 38,447 | |||||||||
919,515 | |||||||||||
TOTAL COMMUNICATION SERVICES | 1,187,969 | ||||||||||
CONSUMER DISCRETIONARY — 15.28% Auto Components — 3.24% | |||||||||||
Adient PLC | 9,595 | 144,501 | |||||||||
Cooper Tire & Rubber Company | 4,859 | 157,091 | |||||||||
Cooper-Standard Holdings, Inc. (a) | 2,535 | 157,473 | |||||||||
Dana, Inc. | 5,702 | 77,718 | |||||||||
Gentherm, Inc. (a) | 1,941 | 77,601 | |||||||||
Horizon Global Corp. (a) | 15,783 | 22,570 | |||||||||
Modine Manufacturing Company (a) | 3,676 | 39,738 | |||||||||
Motorcar Parts of America, Inc. (a) | 6,969 | 115,964 | |||||||||
Standard Motor Products, Inc. | 799 | 38,696 | |||||||||
Stoneridge, Inc. (a) | 1,627 | 40,106 | |||||||||
Superior Industries International, Inc. | 23,064 | 110,938 |
Shares Held | Value | ||||||||||
Tenneco, Inc. | 5,679 | $ | 155,548 | ||||||||
Tower International, Inc. | 6,294 | 149,797 | |||||||||
1,287,741 | |||||||||||
Diversified Consumer Services — 0.28% | |||||||||||
Graham Holdings Company | 58 | 37,154 | |||||||||
Strategic Education, Inc. | 670 | 75,991 | |||||||||
113,145 | |||||||||||
Hotels, Restaurants & Leisure — 2.04% | |||||||||||
Bluegreen Vacations Corp. | 9,221 | 119,228 | |||||||||
Bojangles', Inc. (a) | 6,904 | 111,016 | |||||||||
Brinker International, Inc. | 792 | 34,832 | |||||||||
Carrols Restaurant Group, Inc. (a) | 7,693 | 75,699 | |||||||||
The Cheesecake Factory, Inc. | 1,718 | 74,750 | |||||||||
El Pollo Loco Holdings, Inc. (a) | 10,376 | 157,405 | |||||||||
Eldorado Resorts, Inc. (a) | 1,145 | 41,460 | |||||||||
Hilton Grand Vacations, Inc. (a) | 4,492 | 118,544 | |||||||||
International Speedway Corp. | 943 | 41,360 | |||||||||
Ruth's Hospitality Group, Inc. | 1,584 | 36,004 | |||||||||
810,298 | |||||||||||
Household Durables — 4.64% | |||||||||||
Century Communities, Inc. (a) | 8,866 | 153,027 | |||||||||
CSS Industries, Inc. | 8,201 | 73,563 | |||||||||
Ethan Allen Interiors, Inc. | 4,325 | 76,077 | |||||||||
Flexsteel Industries, Inc. | 3,514 | 77,589 | |||||||||
Green Brick Partners, Inc. (a) | 10,580 | 76,599 | |||||||||
Hooker Furniture Corp. | 4,275 | 112,604 | |||||||||
iRobot Corp. (a) | 417 | 34,920 | |||||||||
La-Z-Boy, Inc. | 2,837 | 78,613 | |||||||||
LGI Homes, Inc. (a) | 2,643 | 119,516 | |||||||||
M/I Homes, Inc. (a) | 5,223 | 109,787 | |||||||||
Meritage Homes Corp. (a) | 4,269 | 156,758 | |||||||||
Taylor Morrison Home Corp. (a) | 9,610 | 152,799 |
The accompanying notes are an integral part of these financial statements.
24
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Tempur Sealy International, Inc. (a) | 918 | $ | 38,005 | ||||||||
TRI Pointe Group, Inc. (a) | 13,721 | 149,971 | |||||||||
Tupperware Brands Corp. | 4,862 | 153,493 | |||||||||
William Lyon Homes (a) | 14,673 | 156,854 | |||||||||
ZAGG, Inc. (a) | 12,379 | 121,067 | |||||||||
1,841,242 | |||||||||||
Internet & Catalog Retail — 0.20% | |||||||||||
Duluth Holdings, Inc. (a) | 3,160 | 79,727 | |||||||||
Leisure Products — 0.40% | |||||||||||
Nautilus, Inc. (a) | 14,474 | 157,767 | |||||||||
Multiline Retail — 0.40% | |||||||||||
Big Lots, Inc. | 5,472 | 158,250 | |||||||||
Specialty Retail — 3.78% | |||||||||||
Asbury Automotive Group, Inc. (a) | 1,814 | 120,921 | |||||||||
Bed Bath & Beyond, Inc. | 10,314 | 116,754 | |||||||||
Francesca's Holdings Corp. (a) | 142,509 | 138,348 | |||||||||
GameStop Corp. | 9,385 | 118,439 | |||||||||
Group 1 Automotive, Inc. | 3,028 | 159,636 | |||||||||
Haverty Furniture Companies, Inc. | 1,898 | 35,644 | |||||||||
Hibbett Sports, Inc. (a) | 8,273 | 118,304 | |||||||||
Lithia Motors, Inc. | 2,072 | 158,156 | |||||||||
Murphy USA, Inc. (a) | 1,511 | 115,803 | |||||||||
Office Depot, Inc. | 55,846 | 144,083 | |||||||||
Sonic Automotive, Inc. | 11,120 | 153,011 | |||||||||
Sportsman's Warehouse Holdings, Inc. (a) | 27,352 | 119,802 | |||||||||
1,498,901 | |||||||||||
Textiles, Apparel & Luxury Goods — 0.30% | |||||||||||
Movado Group, Inc. | 3,712 | 117,373 | |||||||||
TOTAL CONSUMER DISCRETIONARY | 6,064,444 | ||||||||||
CONSUMER STAPLES — 1.56% Food & Staples Retailing — 0.51% | |||||||||||
United Natural Foods, Inc. (a) | 11,671 | 123,596 | |||||||||
Village Super Market, Inc. | 3,016 | 80,648 | |||||||||
204,244 | |||||||||||
Food Products — 0.87% | |||||||||||
B&G Foods, Inc. | 4,097 | 118,443 | |||||||||
Dean Foods Company | 19,681 | 74,985 | |||||||||
Fresh Del Monte Produce, Inc. | 1,281 | 36,214 | |||||||||
Sanderson Farms, Inc. | 1,147 | 113,886 | |||||||||
343,528 | |||||||||||
Personal Products — 0.18% | |||||||||||
Natural Health Trends Corp. | 3,759 | 69,504 | |||||||||
TOTAL CONSUMER STAPLES | 617,276 |
Shares Held | Value | ||||||||||
ENERGY — 9.42% Energy Equipment & Services — 2.77% | |||||||||||
C&J Energy Services, Inc. (a) | 11,693 | $ | 157,856 | ||||||||
Diamond Offshore Drilling, Inc. (a) | 8,080 | 76,275 | |||||||||
Dril-Quip, Inc. (a) | 5,252 | 157,718 | |||||||||
Ensco PLC | 10,223 | 36,394 | |||||||||
Frank's International NV (a) | 29,350 | 153,207 | |||||||||
Matrix Service Company (a) | 6,857 | 123,015 | |||||||||
Oceaneering International, Inc. (a) | 13,360 | 161,655 | |||||||||
Rowan Companies PLC (a) | 8,472 | 71,080 | |||||||||
Smart Sand, Inc. (a) | 72,715 | 161,427 | |||||||||
1,098,627 | |||||||||||
Oil, Gas & Consumable Fuels — 6.65% | |||||||||||
Altus Midstream Company (a) | 2,700 | 20,871 | |||||||||
California Resources Corp. (a) | 4,782 | 81,485 | |||||||||
Callon Petroleum Company (a) | 24,631 | 159,855 | |||||||||
CNX Midstream Partners LP | 4,717 | 76,793 | |||||||||
Contango Oil & Gas Company (a) | 23,273 | 75,637 | |||||||||
CVR Refining LP | 8,446 | 88,092 | |||||||||
Denbury Resources, Inc. (a) | 50,853 | 86,959 | |||||||||
Earthstone Energy, Inc. (a) | 33,287 | 150,457 | |||||||||
EP Energy Corp. (a) | 48,119 | 33,683 | |||||||||
Gulfport Energy Corp. (a) | 22,331 | 146,268 | |||||||||
Kosmos Energy Ltd. (a) | 40,473 | 164,725 | |||||||||
Nordic American Tankers Ltd. | 54,556 | 109,112 | |||||||||
PBF Logistics LP | 5,589 | 112,339 | |||||||||
QEP Resources, Inc. (a) | 27,968 | 157,460 | |||||||||
Range Resources Corp. | 15,131 | 144,804 | |||||||||
Renewable Energy Group, Inc. (a) | 6,039 | 155,202 | |||||||||
REX American Resources Corp. (a) | 2,278 | 155,155 | |||||||||
SM Energy Company | 10,408 | 161,116 | |||||||||
Southwestern Energy Company (a) | 43,668 | 148,908 | |||||||||
Ultra Petroleum Corp. (a) | 115,389 | 87,707 | |||||||||
Whiting Petroleum Corp. (a) | 7,445 | 168,927 | |||||||||
World Fuel Services Corp. | 7,204 | 154,238 | |||||||||
2,639,793 | |||||||||||
TOTAL ENERGY | 3,738,420 | ||||||||||
FINANCIALS — 26.38% Banks — 10.80% | |||||||||||
1st Source Corp. | 866 | 34,934 | |||||||||
Access National Corp. | 3,565 | 76,041 | |||||||||
American National Bankshares, Inc. | 1,252 | 36,696 | |||||||||
Arrow Financial Corp. | 1,082 | 34,646 | |||||||||
Bank of Marin Bancorp | 2,767 | 114,111 | |||||||||
The Bank of NT Butterfield & Son Ltd. | 4,966 | 155,684 |
The accompanying notes are an integral part of these financial statements.
25
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Bar Harbor Bankshares | 3,446 | $ | 77,294 | ||||||||
Bridge Bancorp, Inc. | 1,370 | 34,921 | |||||||||
Brookline Bancorp, Inc. | 2,776 | 38,364 | |||||||||
Camden National Corp. | 1,016 | 36,546 | |||||||||
Carolina Financial Corp. | 1,286 | 38,053 | |||||||||
Cathay General Bancorp | 2,322 | 77,857 | |||||||||
City Holding Company | 580 | 39,202 | |||||||||
Community Trust Bancorp, Inc. | 3,070 | 121,603 | |||||||||
Customers Bancorp, Inc. (a) | 4,164 | 75,785 | |||||||||
Fidelity Southern Corp. | 6,588 | 171,419 | |||||||||
Financial Institutions, Inc. | 5,931 | 152,427 | |||||||||
First BanCorp | 18,336 | 157,689 | |||||||||
First Business Financial Services, Inc. | 1,935 | 37,752 | |||||||||
First Financial Corp. | 903 | 36,255 | |||||||||
First Hawaiian, Inc. | 6,770 | 152,393 | |||||||||
First Internet Bancorp | 5,589 | 114,239 | |||||||||
First Mid-Illinois Bancshares, Inc. | 1,242 | 39,645 | |||||||||
Flushing Financial Corp. | 7,148 | 153,896 | |||||||||
Franklin Financial Network, Inc. (a) | 5,740 | 151,364 | |||||||||
Great Western Bancorp, Inc. | 1,166 | 36,438 | |||||||||
Hanmi Financial Corp. | 7,917 | 155,964 | |||||||||
Hilltop Holdings, Inc. | 8,787 | 156,671 | |||||||||
HomeTrust Bancshares, Inc. | 1,429 | 37,411 | |||||||||
Hope Bancorp, Inc. | 12,643 | 149,946 | |||||||||
Howard Bancorp, Inc. (a) | 2,473 | 35,364 | |||||||||
International Bancshares Corp. | 3,336 | 114,758 | |||||||||
Investors Bancorp, Inc. | 14,824 | 154,170 | |||||||||
Live Oak Bancshares, Inc. | 7,695 | 113,963 | |||||||||
Midland States Bancorp, Inc. | 6,943 | 155,107 | |||||||||
MidSouth Bancorp, Inc. | 3,262 | 34,577 | |||||||||
MidWestOne Financial Group, Inc. | 1,494 | 37,096 | |||||||||
National Bankshares, Inc. | 1,062 | 38,689 | |||||||||
Northrim BanCorp, Inc. | 2,274 | 74,746 | |||||||||
OFG Bancorp | 2,348 | 38,648 | |||||||||
Old National Bancorp | 2,274 | 35,020 | |||||||||
Orrstown Financial Services, Inc. | 2,049 | 37,312 | |||||||||
Peapack Gladstone Financial Corp. | 2,926 | 73,677 | |||||||||
RBB Bancorp | 4,252 | 74,708 | |||||||||
Republic Bancorp, Inc. | 1,061 | 41,082 | |||||||||
Sandy Spring Bancorp, Inc. | 1,245 | 39,018 | |||||||||
Southern National Bancorp of Virginia, Inc. | 8,366 | 110,599 | |||||||||
State Bank Financial Corp. | 3,442 | 74,313 | |||||||||
TriCo Bancshares | 2,364 | 79,880 | |||||||||
Trustmark Corp. | 5,361 | 152,413 | |||||||||
West Bancorporation, Inc. | 1,849 | 35,297 |
Shares Held | Value | ||||||||||
Westamerica Bancorporation | 704 | $ | 39,199 | ||||||||
4,284,882 | |||||||||||
Capital Markets — 4.24% | |||||||||||
AllianceBernstein Holding LP | 6,134 | 167,581 | |||||||||
BrightSphere Investment Group PLC | 14,223 | 151,902 | |||||||||
Donnelley Financial Solutions, Inc. (a) | 10,993 | 154,232 | |||||||||
Ellington Financial LLC | 9,989 | 153,131 | |||||||||
Federated Investors, Inc. | 5,805 | 154,123 | |||||||||
GAMCO Investors, Inc. | 4,336 | 73,235 | |||||||||
Greenhill & Company, Inc. | 6,565 | 160,186 | |||||||||
Legg Mason, Inc. | 6,197 | 158,085 | |||||||||
Och-Ziff Capital Management Group LLC | 80,110 | 73,701 | |||||||||
Oppenheimer Holdings, Inc. | 6,091 | 155,625 | |||||||||
Victory Capital Holdings, Inc. (a) | 12,027 | 122,916 | |||||||||
Waddell & Reed Financial, Inc. | 8,648 | 156,356 | |||||||||
1,681,073 | |||||||||||
Consumer Finance — 0.38% | |||||||||||
Navient Corp. | 17,190 | 151,444 | |||||||||
Diversified Financial Services — 0.77% | |||||||||||
Compass Diversified Holdings | 11,932 | 148,553 | |||||||||
FGL Holdings (a) | 23,550 | 156,843 | |||||||||
305,396 | |||||||||||
Insurance — 4.72% | |||||||||||
Ambac Financial Group, Inc. (a) | 4,587 | 79,080 | |||||||||
American Equity Investment Life Holding Company | 2,826 | 78,958 | |||||||||
Argo Group International Holdings Ltd. | 1,739 | 116,948 | |||||||||
Aspen Insurance Holdings Ltd. | 3,642 | 152,928 | |||||||||
CNO Financial Group, Inc. | 10,286 | 153,056 | |||||||||
EMC Insurance Group, Inc. | 1,462 | 46,565 | |||||||||
Employers Holdings, Inc. | 1,885 | 79,113 | |||||||||
Enstar Group Ltd. (a) | 949 | 159,023 | |||||||||
Global Indemnity Ltd. | 2,248 | 81,445 | |||||||||
Horace Mann Educators Corp. | 4,064 | 152,197 | |||||||||
MBIA, Inc. (a) | 13,646 | 121,722 | |||||||||
National Western Life Group, Inc. | 525 | 157,867 | |||||||||
The Navigators Group, Inc. | 1,069 | 74,285 | |||||||||
ProAssurance Corp. | 2,967 | 120,342 | |||||||||
Stewart Information Services Corp. | 2,691 | 111,407 | |||||||||
Third Point Reinsurance Ltd. (a) | 12,198 | 117,589 | |||||||||
White Mountains Insurance Group Ltd. | 81 | 69,473 | |||||||||
1,871,998 | |||||||||||
Mortgage Real Estate Investment Trusts — 1.61% | |||||||||||
Ares Commercial Real Estate Corp. | 11,404 | 148,708 | |||||||||
Colony Credit Real Estate, Inc. | 9,282 | 146,563 |
The accompanying notes are an integral part of these financial statements.
26
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Exantas Capital Corp. | 11,271 | $ | 112,935 | ||||||||
Great Ajax Corp. | 3,160 | 38,078 | |||||||||
Owens Realty Mortgage, Inc. | 2,333 | 43,837 | |||||||||
PennyMac Mortgage Investment Trust | 8,052 | 149,929 | |||||||||
640,050 | |||||||||||
Thrifts & Mortgage Finance — 3.86% | |||||||||||
Capitol Federal Financial, Inc. | 12,083 | 154,300 | |||||||||
Dime Community Bancshares, Inc. | 9,163 | 155,588 | |||||||||
HomeStreet, Inc. (a) | 7,078 | 150,266 | |||||||||
Luther Burbank Corp. | 4,085 | 36,847 | |||||||||
Merchants Bancorp | 7,760 | 154,890 | |||||||||
Northfield Bancorp, Inc. | 11,477 | 155,513 | |||||||||
Oritani Financial Corp. | 10,446 | 154,079 | |||||||||
PCSB Financial Corp. | 3,804 | 74,406 | |||||||||
Southern Missouri Bancorp, Inc. | 1,059 | 35,900 | |||||||||
Sterling Bancorp, Inc. | 10,662 | 74,101 | |||||||||
Territorial Bancorp, Inc. | 1,492 | 38,762 | |||||||||
TrustCo Bank Corp. | 16,864 | 115,687 | |||||||||
Washington Federal, Inc. | 5,844 | 156,093 | |||||||||
Waterstone Financial, Inc. | 4,583 | 76,811 | |||||||||
1,533,243 | |||||||||||
TOTAL FINANCIALS | 10,468,086 | ||||||||||
HEALTH CARE — 2.24% Biotechnology — 0.20% | |||||||||||
Emergent BioSolutions, Inc. (a) | 1,338 | 79,317 | |||||||||
Health Care Equipment & Supplies — 0.80% | |||||||||||
Anika Therapeutics, Inc. (a) | 2,473 | 83,118 | |||||||||
Meridian Bioscience, Inc. | 6,554 | 113,777 | |||||||||
Varex Imaging Corp. (a) | 5,036 | 119,252 | |||||||||
316,147 | |||||||||||
Health Care Providers & Services — 1.24% | |||||||||||
AMN Healthcare Services, Inc. (a) | 635 | 35,979 | |||||||||
Magellan Health, Inc. (a) | 2,706 | 153,944 | |||||||||
National HealthCare Corp. | 1,935 | 151,801 | |||||||||
Owens & Minor, Inc. | 5,932 | 37,550 | |||||||||
Tivity Health, Inc. (a) | 4,607 | 114,300 | |||||||||
493,574 | |||||||||||
TOTAL HEALTH CARE | 889,038 | ||||||||||
INDUSTRIALS — 18.27% Aerospace & Defense — 1.07% | |||||||||||
Astronics Corp. (a) | 2,439 | 74,268 | |||||||||
Esterline Technologies Corp. (a) | 629 | 76,392 | |||||||||
National Presto Industries, Inc. | 994 | 116,218 | |||||||||
Vectrus, Inc. (a) | 7,255 | 156,563 | |||||||||
423,441 |
Shares Held | Value | ||||||||||
Air Freight & Logistics — 0.19% | |||||||||||
Hub Group, Inc. (a) | 2,010 | $ | 74,511 | ||||||||
Airlines — 1.07% | |||||||||||
Allegiant Travel Company | 1,504 | 150,731 | |||||||||
Hawaiian Holdings, Inc. | 6,010 | 158,724 | |||||||||
Spirit Airlines, Inc. (a) | 2,009 | 116,361 | |||||||||
425,816 | |||||||||||
Building Products — 2.32% | |||||||||||
Apogee Enterprises, Inc. | 3,956 | 118,087 | |||||||||
Armstrong Flooring, Inc. (a) | 13,195 | 156,229 | |||||||||
Builders FirstSource, Inc. (a) | 3,205 | 34,967 | |||||||||
Caesarstone Ltd. | 11,872 | 161,222 | |||||||||
Gibraltar Industries, Inc. (a) | 1,083 | 38,544 | |||||||||
Insteel Industries, Inc. | 3,155 | 76,603 | |||||||||
Masonite International Corp. (a) | 3,241 | 145,294 | |||||||||
NCI Building Systems, Inc. (a) | 9,953 | 72,159 | |||||||||
Universal Forest Products, Inc. | 4,494 | 116,664 | |||||||||
919,769 | |||||||||||
Commercial Services & Supplies — 2.51% | |||||||||||
ACCO Brands Corp. | 11,919 | 80,811 | |||||||||
Deluxe Corp. | 2,915 | 112,053 | |||||||||
Ennis, Inc. | 6,077 | 116,982 | |||||||||
Herman Miller, Inc. | 5,094 | 154,093 | |||||||||
Knoll, Inc. | 9,246 | 152,374 | |||||||||
LSC Communications, Inc. | 21,824 | 152,768 | |||||||||
Quad/Graphics, Inc. | 3,110 | 38,315 | |||||||||
Steelcase, Inc. | 10,315 | 152,971 | |||||||||
UniFirst Corp. | 253 | 36,197 | |||||||||
996,564 | |||||||||||
Construction & Engineering — 1.69% | |||||||||||
Dycom Industries, Inc. (a) | 3,006 | 162,445 | |||||||||
KBR, Inc. | 10,325 | 156,734 | |||||||||
MYR Group, Inc. (a) | 4,084 | 115,046 | |||||||||
Primoris Services Corp. | 1,903 | 36,404 | |||||||||
Tutor Perini Corp. (a) | 9,901 | 158,119 | |||||||||
Valmont Industries, Inc. | 396 | 43,936 | |||||||||
672,684 | |||||||||||
Electrical Equipment — 0.71% | |||||||||||
Encore Wire Corp. | 2,396 | 120,232 | |||||||||
Generac Holdings, Inc. (a) | 772 | 38,368 | |||||||||
Preformed Line Products Company | 1,527 | 82,840 | |||||||||
Thermon Group Holdings, Inc. (a) | 1,983 | 40,215 | |||||||||
281,655 |
The accompanying notes are an integral part of these financial statements.
27
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Machinery — 5.17% | |||||||||||
Alamo Group, Inc. | 460 | $ | 35,567 | ||||||||
Blue Bird Corp. (a) | 6,630 | 120,600 | |||||||||
Briggs & Stratton Corp. | 2,753 | 36,009 | |||||||||
Commercial Vehicle Group, Inc. (a) | 26,615 | 151,706 | |||||||||
EnPro Industries, Inc. | 2,580 | 155,058 | |||||||||
Global Brass & Copper Holdings, Inc. | 5,921 | 148,913 | |||||||||
Graham Corp. | 3,589 | 81,973 | |||||||||
The Greenbrier Companies, Inc. | 3,799 | 150,212 | |||||||||
Hurco Companies, Inc. | 3,294 | 117,596 | |||||||||
Hyster-Yale Materials Handling, Inc. | 1,927 | 119,397 | |||||||||
Luxfer Holdings PLC | 2,254 | 39,738 | |||||||||
Lydall, Inc. (a) | 5,566 | 113,045 | |||||||||
Meritor, Inc. (a) | 9,313 | 157,483 | |||||||||
Mueller Industries, Inc. | 3,295 | 76,971 | |||||||||
Navistar International Corp. (a) | 4,536 | 117,709 | |||||||||
Park-Ohio Holdings Corp. | 2,563 | 78,658 | |||||||||
REV Group, Inc. | 20,993 | 157,657 | |||||||||
The Timken Company | 961 | 35,865 | |||||||||
Wabash National Corp. | 11,912 | 155,809 | |||||||||
2,049,966 | |||||||||||
Marine — 0.39% | |||||||||||
Matson, Inc. | 4,783 | 153,152 | |||||||||
Professional Services — 2.37% | |||||||||||
Barrett Business Services, Inc. | 1,337 | 76,543 | |||||||||
CBIZ, Inc. (a) | 1,771 | 34,889 | |||||||||
FTI Consulting, Inc. (a) | 1,256 | 83,700 | |||||||||
GP Strategies Corp. (a) | 9,083 | 114,537 | |||||||||
InnerWorkings, Inc. (a) | 34,262 | 128,140 | |||||||||
Kelly Services, Inc. | 5,630 | 115,302 | |||||||||
Kforce, Inc. | 2,477 | 76,589 | |||||||||
Korn/Ferry International | 3,876 | 153,256 | |||||||||
Navigant Consulting, Inc. | 3,359 | 80,784 | |||||||||
Resources Connection, Inc. | 5,485 | 77,887 | |||||||||
941,627 | |||||||||||
Trading Companies & Distributors — 0.78% | |||||||||||
Beacon Roofing Supply, Inc. (a) | 1,191 | 37,779 | |||||||||
Rush Enterprises, Inc. | 4,498 | 155,091 | |||||||||
WESCO International, Inc. (a) | 2,465 | 118,320 | |||||||||
311,190 | |||||||||||
TOTAL INDUSTRIALS | 7,250,375 |
Shares Held | Value | ||||||||||
INFORMATION TECHNOLOGY — 10.15% Communications Equipment — 0.96% | |||||||||||
Comtech Telecommunications Corp. | 1,477 | $ | 35,950 | ||||||||
Digi International, Inc. (a) | 7,739 | 78,087 | |||||||||
NETGEAR, Inc. (a) | 1,569 | 81,635 | |||||||||
Quantenna Communications, Inc. (a) | 8,049 | 115,503 | |||||||||
Ribbon Communications, Inc. (a) | 14,387 | 69,345 | |||||||||
380,520 | |||||||||||
Electronic Equipment, Instruments & Components — 4.50% | |||||||||||
Anixter International, Inc. (a) | 2,868 | 155,761 | |||||||||
AVX Corp. | 10,227 | 155,962 | |||||||||
Benchmark Electronics, Inc. | 5,463 | 115,706 | |||||||||
Daktronics, Inc. | 15,027 | 111,200 | |||||||||
ePlus, Inc. (a) | 1,137 | 80,920 | |||||||||
Insight Enterprises, Inc. (a) | 2,868 | 116,871 | |||||||||
Methode Electronics, Inc. | 6,859 | 159,747 | |||||||||
PC Connection, Inc. | 3,916 | 116,423 | |||||||||
Plexus Corp. (a) | 2,256 | 115,236 | |||||||||
Sanmina Corp. (a) | 6,335 | 152,420 | |||||||||
ScanSource, Inc. (a) | 3,353 | 115,276 | |||||||||
Tech Data Corp. (a) | 1,935 | 158,303 | |||||||||
TTM Technologies, Inc. (a) | 11,892 | 115,709 | |||||||||
Vishay Intertechnology, Inc. | 6,426 | 115,732 | |||||||||
1,785,266 | |||||||||||
IT Services — 1.25% | |||||||||||
CSG Systems International, Inc. | 3,610 | 114,690 | |||||||||
Luxoft Holding, Inc. (a) | 4,810 | 146,319 | |||||||||
NIC, Inc. | 9,273 | 115,727 | |||||||||
Sykes Enterprises, Inc. (a) | 4,850 | 119,941 | |||||||||
496,677 | |||||||||||
Semiconductors & Semiconductor Equipment — 2.66% | |||||||||||
Advanced Energy Industries, Inc. (a) | 2,791 | 119,818 | |||||||||
Amkor Technology, Inc. (a) | 12,422 | 81,488 | |||||||||
Aquantia Corp. (a) | 9,048 | 79,351 | |||||||||
Cirrus Logic, Inc. (a) | 4,562 | 151,367 | |||||||||
Diodes, Inc. (a) | 4,879 | 157,396 | |||||||||
Ichor Holdings Ltd. (a) | 4,879 | 79,528 | |||||||||
Photronics, Inc. (a) | 15,854 | 153,467 | |||||||||
SMART Global Holdings, Inc. (a) | 2,648 | 78,646 | |||||||||
Synaptics, Inc. (a) | 4,088 | 152,114 | |||||||||
1,053,175 | |||||||||||
Software — 0.40% | |||||||||||
MicroStrategy, Inc. (a) | 982 | 125,451 | |||||||||
Monotype Imaging Holdings, Inc. | 2,160 | 33,523 | |||||||||
158,974 |
The accompanying notes are an integral part of these financial statements.
28
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Technology Hardware, Storage & Peripherals — 0.38% | |||||||||||
Super Micro Computer, Inc. (a) | 10,940 | $ | 150,972 | ||||||||
TOTAL INFORMATION TECHNOLOGY | 4,025,584 | ||||||||||
MATERIALS — 4.10% Chemicals — 2.25% | |||||||||||
American Vanguard Corp. | 7,729 | 117,404 | |||||||||
Core Molding Technologies, Inc. | 4,972 | 35,351 | |||||||||
FutureFuel Corp. | 7,300 | 115,778 | |||||||||
GCP Applied Technologies, Inc. (a) | 1,492 | 36,629 | |||||||||
Hawkins, Inc. | 2,887 | 118,223 | |||||||||
Innospec, Inc. | 1,965 | 121,357 | |||||||||
Koppers Holdings, Inc. (a) | 2,080 | 35,443 | |||||||||
Minerals Technologies, Inc. | 2,284 | 117,261 | |||||||||
Rayonier Advanced Materials, Inc. | 7,505 | 79,928 | |||||||||
Stepan Company | 1,581 | 116,994 | |||||||||
894,368 | |||||||||||
Containers & Packaging — 0.39% | |||||||||||
Owens-Illinois, Inc. | 2,226 | 38,376 | |||||||||
Silgan Holdings, Inc. | 4,876 | 115,171 | |||||||||
153,547 | |||||||||||
Metals & Mining — 0.78% | |||||||||||
Cleveland-Cliffs, Inc. | 4,940 | 37,989 | |||||||||
Compass Minerals International, Inc. | 2,795 | 116,524 | |||||||||
Kaiser Aluminum Corp. | 397 | 35,448 | |||||||||
SunCoke Energy Partners LP | 11,227 | 119,455 | |||||||||
309,416 | |||||||||||
Paper & Forest Products — 0.68% | |||||||||||
Clearwater Paper Corp. (a) | 6,418 | 156,406 | |||||||||
PH Glatfelter Company | 7,663 | 74,791 | |||||||||
Schweitzer-Mauduit International, Inc. | 1,470 | 36,824 | |||||||||
268,021 | |||||||||||
TOTAL MATERIALS | 1,625,352 | ||||||||||
REAL ESTATE — 1.33% Equity Real Estate Investment Trusts — 1.14% | |||||||||||
Colony Capital, Inc. | 31,632 | 148,038 | |||||||||
The GEO Group, Inc. | 7,858 | 154,802 | |||||||||
Seritage Growth Properties | 4,608 | 148,977 | |||||||||
451,817 | |||||||||||
Real Estate Management & Development — 0.19% | |||||||||||
HFF, Inc. | 1,141 | 37,836 | |||||||||
Marcus & Millichap, Inc. (a) | 1,117 | 38,346 | |||||||||
76,182 | |||||||||||
TOTAL REAL ESTATE | 527,999 |
Shares Held | Value | ||||||||||
UTILITIES — 4.13% Electric Utilities — 1.54% | |||||||||||
ALLETE, Inc. | 976 | $ | 74,391 | ||||||||
El Paso Electric Company | 1,524 | 76,398 | |||||||||
PNM Resources, Inc. | 3,762 | 154,581 | |||||||||
Portland General Electric Company | 3,399 | 155,844 | |||||||||
Spark Energy, Inc. | 19,926 | 148,050 | |||||||||
609,264 | |||||||||||
Gas Utilities — 1.25% | |||||||||||
Northwest Natural Holding Company | 1,852 | 111,972 | |||||||||
South Jersey Industries, Inc. | 4,144 | 115,203 | |||||||||
Spire, Inc. | 2,093 | 155,050 | |||||||||
Star Group LP | 3,860 | 36,052 | |||||||||
Suburban Propane Partners LP | 4,027 | 77,600 | |||||||||
495,877 | |||||||||||
Multi-Utilities — 1.34% | |||||||||||
Avista Corp. | 3,531 | 149,997 | |||||||||
Black Hills Corp. | 2,479 | 155,631 | |||||||||
NorthWestern Corp. | 2,533 | 150,562 | |||||||||
Unitil Corp. | 1,512 | 76,568 | |||||||||
532,758 | |||||||||||
TOTAL UTILITIES | 1,637,899 | ||||||||||
Total common stocks (Cost $44,136,065) | 38,032,442 | ||||||||||
Total long-term investments (Cost $44,136,065) | 38,032,442 | ||||||||||
SHORT-TERM INVESTMENTS — 2.79% | Principal Amount | ||||||||||
Time Deposits — 2.79% | |||||||||||
National Australia Bank Ltd., 1.77%, 01/02/2019* | $ | 1,108,597 | 1,108,597 | ||||||||
Total short-term investments (Cost $1,108,597) | 1,108,597 | ||||||||||
Total investments — 98.64% (Cost $45,244,662) | 39,141,039 | ||||||||||
Other assets in excess of liabilities — 1.36% | 539,695 | ||||||||||
Net assets — 100.00% | $ | 39,680,734 |
(a) — Non-income producing security.
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
29
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Global Value Fund (Unaudited)
* Based on country of risk.
Largest Equity Holdings | Percent of net assets | ||||||
American International Group, Inc. | 5.47 | % | |||||
General Electric Company | 3.27 | % | |||||
WestJet Airlines Ltd. | 3.23 | % | |||||
Wells Fargo & Company | 3.04 | % | |||||
The Goldman Sachs Group, Inc. | 2.97 | % | |||||
Societe Generale SA | 2.94 | % | |||||
Royal Mail PLC | 2.90 | % | |||||
Oracle Corp. | 2.77 | % | |||||
BAE Systems PLC | 2.77 | % | |||||
Danieli & C Officine Meccaniche SpA | 2.71 | % |
COMMON STOCKS — 99.85% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 5.26% Media — 2.68% | |||||||||||
Discovery, Inc. (a) | 8,850 | $ | 204,258 | ||||||||
Wireless Telecommunication Services — 2.58% | |||||||||||
Vodafone Group PLC — ADR | 10,172 | 196,116 | |||||||||
TOTAL COMMUNICATION SERVICES | 400,374 | ||||||||||
CONSUMER DISCRETIONARY — 7.94% Auto Components — 3.05% | |||||||||||
Adient PLC | 3,631 | 54,683 | |||||||||
Magna International, Inc. | 3,911 | 177,755 | |||||||||
232,438 | |||||||||||
Automobiles — 4.16% | |||||||||||
Bayerische Motoren Werke AG (v) | 1,797 | 128,148 | |||||||||
General Motors Company | 5,645 | 188,825 | |||||||||
316,973 | |||||||||||
Specialty Retail — 0.73% | |||||||||||
Kingfisher PLC (v) | 21,102 | 55,483 | |||||||||
TOTAL CONSUMER DISCRETIONARY | 604,894 | ||||||||||
CONSUMER STAPLES — 4.24% Beverages — 2.15% | |||||||||||
Heineken Holding NV (v) | 987 | 83,388 | |||||||||
PepsiCo, Inc. | 728 | 80,430 | |||||||||
163,818 | |||||||||||
Food & Staples Retailing — 0.95% | |||||||||||
Tesco PLC (v) | 29,814 | 72,304 | |||||||||
Personal Products — 1.14% | |||||||||||
Unilever PLC (v) | 1,656 | 86,944 | |||||||||
TOTAL CONSUMER STAPLES | 323,066 |
Shares Held | Value | ||||||||||
ENERGY — 8.31% Energy Equipment & Services — 2.12% | |||||||||||
C&J Energy Services, Inc. (a) | 1,874 | $ | 25,299 | ||||||||
Frank's International NV (a) | 11,516 | 60,114 | |||||||||
National Oilwell Varco, Inc. | 2,969 | 76,303 | |||||||||
161,716 | |||||||||||
Oil, Gas & Consumable Fuels — 6.19% | |||||||||||
Apache Corp. | 1,602 | 42,053 | |||||||||
Cairn Energy PLC (a) (v) | 36,190 | 69,056 | |||||||||
Kosmos Energy Ltd. (a) | 22,188 | 90,305 | |||||||||
Marathon Oil Corp. | 3,283 | 47,078 | |||||||||
Ophir Energy PLC (a) | 180,291 | 82,038 | |||||||||
Whiting Petroleum Corp. (a) | 6,203 | 140,746 | |||||||||
471,276 | |||||||||||
TOTAL ENERGY | 632,992 | ||||||||||
FINANCIALS — 31.05% Banks — 15.94% | |||||||||||
Barclays PLC (v) | 79,676 | 152,442 | |||||||||
BNP Paribas SA (v) | 2,956 | 133,495 | |||||||||
Citigroup, Inc. | 1,804 | 93,916 | |||||||||
Citizens Financial Group, Inc. | 2,000 | 59,460 | |||||||||
Credito Valtellinese SpA (a) (v) | 1,666,769 | 140,136 | |||||||||
ING Groep NV (v) | 16,656 | 179,162 | |||||||||
Societe Generale SA (v) | 7,053 | 223,613 | |||||||||
Wells Fargo & Company | 5,030 | 231,782 | |||||||||
1,214,006 | |||||||||||
Capital Markets — 5.16% | |||||||||||
Credit Suisse Group AG (a) (v) | 15,264 | 166,861 | |||||||||
The Goldman Sachs Group, Inc. | 1,354 | 226,186 | |||||||||
393,047 |
The accompanying notes are an integral part of these financial statements.
30
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Global Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Insurance — 9.95% | |||||||||||
American International Group, Inc. | 10,569 | $ | 416,524 | ||||||||
Tokio Marine Holdings, Inc. (v) | 3,600 | 171,031 | |||||||||
Zurich Insurance Group AG (v) | 571 | 170,209 | |||||||||
757,764 | |||||||||||
TOTAL FINANCIALS | 2,364,817 | ||||||||||
HEALTH CARE — 3.41% Health Care Providers & Services — 0.74% | |||||||||||
Anthem, Inc. | 215 | 56,465 | |||||||||
Pharmaceuticals — 2.67% | |||||||||||
GlaxoSmithKline PLC — ADR | 2,819 | 107,714 | |||||||||
Sanofi (v) | 1,100 | 95,425 | |||||||||
203,139 | |||||||||||
TOTAL HEALTH CARE | 259,604 | ||||||||||
INDUSTRIALS — 25.86% Aerospace & Defense — 4.87% | |||||||||||
BAE Systems PLC (v) | 36,059 | 210,904 | |||||||||
Embraer SA — ADR | 7,253 | 160,509 | |||||||||
371,413 | |||||||||||
Air Freight & Logistics — 2.90% | |||||||||||
Royal Mail PLC (v) | 63,587 | 220,703 | |||||||||
Airlines — 3.23% | |||||||||||
WestJet Airlines Ltd. | 18,688 | 246,399 | |||||||||
Building Products — 1.72% | |||||||||||
Johnson Controls International PLC | 1,914 | 56,750 | |||||||||
Masonite International Corp. (a) | 1,651 | 74,014 | |||||||||
130,764 | |||||||||||
Industrial Conglomerates — 3.27% | |||||||||||
General Electric Company | 32,872 | 248,841 | |||||||||
Machinery — 8.18% | |||||||||||
CNH Industrial NV | 20,682 | 190,481 | |||||||||
Cummins, Inc. | 1,129 | 150,880 | |||||||||
Danieli & C Officine Meccaniche SpA | 13,960 | 206,332 | |||||||||
Navistar International Corp. (a) | 2,892 | 75,047 | |||||||||
622,740 | |||||||||||
Marine — 0.52% | |||||||||||
Matson, Inc. | 1,232 | 39,449 | |||||||||
Road & Rail — 1.17% | |||||||||||
AMERCO | 272 | 89,246 | |||||||||
TOTAL INDUSTRIALS | 1,969,555 | ||||||||||
INFORMATION TECHNOLOGY — 11.51% Communications Equipment — 1.73% | |||||||||||
Telefonaktiebolaget LM Ericsson — ADR | 14,872 | 131,915 |
Shares Held | Value | ||||||||||
Electronic Equipment, Instruments & Components — 2.15% | |||||||||||
Corning, Inc. | 2,873 | $ | 86,793 | ||||||||
Hitachi Ltd. (v) | 2,900 | 76,880 | |||||||||
163,673 | |||||||||||
Software — 4.92% | |||||||||||
Microsoft Corp. | 1,613 | 163,833 | |||||||||
Oracle Corp. | 4,675 | 211,076 | |||||||||
374,909 | |||||||||||
Technology Hardware, Storage & Peripherals — 2.71% | |||||||||||
Hewlett Packard Enterprise Company | 15,587 | 205,904 | |||||||||
TOTAL INFORMATION TECHNOLOGY | 876,401 | ||||||||||
REAL ESTATE — 2.27% Equity Real Estate Investment Trusts — 2.27% | |||||||||||
Seritage Growth Properties | 5,343 | 172,739 | |||||||||
TOTAL REAL ESTATE | 172,739 | ||||||||||
Total common stocks (Cost $8,737,285) | 7,604,442 | ||||||||||
Total long-term investments (Cost $8,737,285) | 7,604,442 | ||||||||||
SHORT-TERM INVESTMENTS — 0.13% | Principal Amount | ||||||||||
Time Deposits — 0.13% | |||||||||||
Brown Brothers Harriman & Co., 0.84%, 01/02/2019* | CAD | 2,226 | 1,631 | ||||||||
Brown Brothers Harriman & Co., 0.37%, 01/02/2019* | GBP | 3 | 3 | ||||||||
Brown Brothers Harriman & Co., 1.77%, 01/02/2019* | $ | 8,346 | 8,345 | ||||||||
Total short-term investments (Cost $9,979) | 9,979 | ||||||||||
Total investments — 99.98% (Cost $8,747,264) | 7,614,421 | ||||||||||
Other assets in excess of liabilities — 0.02% | 1,341 | ||||||||||
Net assets — 100.00% | $ | 7,615,762 |
(a) — Non-income producing security.
(v) — Security was fair valued as a result of market movements following the close of local trading using a third-party vendor's proprietary fair value pricing model. The total market value of these securities was $2,436,184, which represented 31.99% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
ADR — American Depositary Receipt
CAD — Canadian Dollar
GBP — British Pound
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
31
Schedule of Investments — December 31, 2018
Hotchkis & Wiley International Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
BAE Systems PLC | 4.52 | % | |||||
WestJet Airlines Ltd. | 3.63 | % | |||||
Tokio Marine Holdings, Inc. | 3.54 | % | |||||
CNH Industrial NV | 3.46 | % | |||||
Societe Generale SA | 3.21 | % | |||||
Vodafone Group PLC | 3.16 | % | |||||
Danieli & C Officine Meccaniche SpA | 3.06 | % | |||||
Royal Mail PLC | 3.06 | % | |||||
Enstar Group Ltd. | 3.04 | % | |||||
Global Indemnity Ltd. | 2.82 | % |
* Based on country of risk
+ Sum of sectors shown is greater than 100% due to short-term securities and liabilities in excess of other assets of (0.48)%.
COMMON STOCKS — 100.48% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 5.12% Media — 0.54% | |||||||||||
RTL Group SA (v) | 216 | $ | 11,507 | ||||||||
Wireless Telecommunication Services — 4.58% | |||||||||||
Orange Belgium SA | 1,545 | 30,518 | |||||||||
Vodafone Group PLC (v) | 34,846 | 67,751 | |||||||||
98,269 | |||||||||||
TOTAL COMMUNICATION SERVICES | 109,776 | ||||||||||
CONSUMER DISCRETIONARY — 7.24% Auto Components — 2.69% | |||||||||||
Magna International, Inc. | 1,272 | 57,812 | |||||||||
Automobiles — 2.87% | |||||||||||
Bayerische Motoren Werke AG (v) | 641 | 45,711 | |||||||||
Honda Motor Company Ltd. (v) | 600 | 15,807 | |||||||||
61,518 | |||||||||||
Leisure Products — 0.52% | |||||||||||
Sega Sammy Holdings, Inc. (v) | 800 | 11,153 | |||||||||
Specialty Retail — 1.16% | |||||||||||
Kingfisher PLC (v) | 7,866 | 20,682 | |||||||||
Pendragon PLC | 15,032 | 4,311 | |||||||||
24,993 | |||||||||||
TOTAL CONSUMER DISCRETIONARY | 155,476 | ||||||||||
CONSUMER STAPLES — 8.52% Beverages — 2.15% | |||||||||||
Heineken Holding NV (v) | 547 | 46,214 | |||||||||
Food & Staples Retailing — 1.63% | |||||||||||
Tesco PLC (v) | 14,396 | 34,913 | |||||||||
Food Products — 1.89% | |||||||||||
Ezaki Glico Company Ltd. (v) | 800 | 40,616 |
Shares Held | Value | ||||||||||
Personal Products — 2.42% | |||||||||||
Unilever PLC (v) | 988 | $ | 51,873 | ||||||||
Tobacco — 0.43% | |||||||||||
Scandinavian Tobacco Group (r) (v) | 757 | 9,123 | |||||||||
TOTAL CONSUMER STAPLES | 182,739 | ||||||||||
ENERGY — 9.87% Energy Equipment & Services — 4.13% | |||||||||||
Borr Drilling Ltd. (a) (v) | 5,296 | 13,112 | |||||||||
Frank's International NV (a) | 9,057 | 47,278 | |||||||||
Subsea 7 SA (v) | 2,900 | 28,259 | |||||||||
88,649 | |||||||||||
Oil, Gas & Consumable Fuels — 5.74% | |||||||||||
Cairn Energy PLC (a) (v) | 9,036 | 17,242 | |||||||||
Kosmos Energy Ltd. (a) | 3,968 | 16,150 | |||||||||
Ophir Energy PLC (a) | 73,084 | 33,256 | |||||||||
Rockhopper Exploration PLC (a) (v) | 42,625 | 11,426 | |||||||||
Royal Dutch Shell PLC (v) | 1,527 | 45,008 | |||||||||
123,082 | |||||||||||
TOTAL ENERGY | 211,731 | ||||||||||
FINANCIALS — 30.15% Banks — 13.17% | |||||||||||
Barclays PLC (v) | 25,417 | 48,630 | |||||||||
BNP Paribas SA (v) | 924 | 41,729 | |||||||||
Credito Valtellinese SpA (a) (v) | 620,067 | 52,133 | |||||||||
ING Groep NV (v) | 4,867 | 52,353 | |||||||||
Societe Generale SA (v) | 2,171 | 68,830 | |||||||||
Standard Chartered PLC (v) | 2,435 | 18,924 | |||||||||
282,599 |
The accompanying notes are an integral part of these financial statements.
32
Schedule of Investments — December 31, 2018
Hotchkis & Wiley International Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Capital Markets — 2.47% | |||||||||||
Credit Suisse Group AG (a) (v) | 4,848 | $ | 52,997 | ||||||||
Insurance — 14.51% | |||||||||||
Aviva PLC (v) | 2,280 | 10,912 | |||||||||
Enstar Group Ltd. (a) | 389 | 65,184 | |||||||||
Global Indemnity Ltd. | 1,668 | 60,432 | |||||||||
Legal & General Group PLC (v) | 3,770 | 11,108 | |||||||||
RSA Insurance Group PLC (v) | 4,926 | 32,328 | |||||||||
Tokio Marine Holdings, Inc. (v) | 1,600 | 76,014 | |||||||||
Zurich Insurance Group AG (v) | 186 | 55,444 | |||||||||
311,422 | |||||||||||
TOTAL FINANCIALS | 647,018 | ||||||||||
HEALTH CARE — 5.17% Health Care Equipment & Supplies — 1.51% | |||||||||||
Koninklijke Philips NV (v) | 926 | 32,465 | |||||||||
Pharmaceuticals — 3.66% | |||||||||||
GlaxoSmithKline PLC (v) | 2,509 | 47,817 | |||||||||
Sanofi (v) | 353 | 30,623 | |||||||||
78,440 | |||||||||||
TOTAL HEALTH CARE | 110,905 | ||||||||||
INDUSTRIALS — 23.44% Aerospace & Defense — 7.27% | |||||||||||
BAE Systems PLC (v) | 16,575 | 96,944 | |||||||||
Embraer SA — ADR | 2,669 | 59,065 | |||||||||
156,009 | |||||||||||
Air Freight & Logistics — 3.06% | |||||||||||
Royal Mail PLC (v) | 18,929 | 65,700 | |||||||||
Airlines — 3.63% | |||||||||||
WestJet Airlines Ltd. | 5,908 | 77,897 | |||||||||
Building Products — 0.98% | |||||||||||
Johnson Controls International PLC | 709 | 21,022 | |||||||||
Construction & Engineering — 0.44% | |||||||||||
Bouygues SA (v) | 261 | 9,372 | |||||||||
Machinery — 7.75% | |||||||||||
CNH Industrial NV (v) | 1,759 | 15,893 | |||||||||
CNH Industrial NV | 8,053 | 74,167 | |||||||||
Danieli & C Officine Meccaniche SpA | 4,447 | 65,727 | |||||||||
KSB SE & Company KGaA (v) | 34 | 10,557 | |||||||||
166,344 | |||||||||||
Professional Services — 0.31% | |||||||||||
Hudson Global, Inc. (a) | 4,990 | 6,738 | |||||||||
TOTAL INDUSTRIALS | 503,082 |
Shares Held | Value | ||||||||||
INFORMATION TECHNOLOGY — 7.58% Communications Equipment — 2.78% | |||||||||||
Telefonaktiebolaget LM Ericsson (v) | 6,744 | $ | 59,698 | ||||||||
Electronic Equipment, Instruments & Components — 4.80% | |||||||||||
Hitachi Ltd. (v) | 2,000 | 53,020 | |||||||||
Nippon Electric Glass Company Ltd. (v) | 1,100 | 26,949 | |||||||||
TE Connectivity Ltd. | 305 | 23,067 | |||||||||
103,036 | |||||||||||
TOTAL INFORMATION TECHNOLOGY | 162,734 | ||||||||||
MATERIALS — 3.39% Chemicals — 3.39% | |||||||||||
Nufarm Ltd. (v) | 8,971 | 37,663 | |||||||||
Tikkurila Oyj (v) | 2,553 | 35,136 | |||||||||
TOTAL MATERIALS | 72,799 | ||||||||||
Total common stocks (Cost $2,451,812) | 2,156,260 | ||||||||||
Total long-term investments (Cost $2,451,812) | 2,156,260 | ||||||||||
SHORT-TERM INVESTMENTS — 1.94% | Principal Amount | ||||||||||
Time Deposits — 1.94% | |||||||||||
Banco Santander SA, 1.77%, 01/02/2019* | $ | 41,748 | 41,748 | ||||||||
Total short-term investments (Cost $41,748) | 41,748 | ||||||||||
Total investments — 102.42% (Cost $2,493,560) | 2,198,008 | ||||||||||
Liabilities in excess of other assets — (2.42)% | (52,001 | ) | |||||||||
Net assets — 100.00% | $ | 2,146,007 |
(a) — Non-income producing security.
(r) — Rule 144A security of the Securities Act of 1933. Purchased in a private placement transaction; resale to the public may require registration or be limited to qualified institutional buyers. The total market value of these securities was $9,123, which represented 0.43% of net assets.
(v) — Security was fair valued as a result of market movements following the close of local trading using a third-party vendor's proprietary fair value pricing model. The total market value of these securities was $1,513,636, which represented 70.53% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
ADR — American Depositary Receipt
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
33
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Value Opportunities Fund (Unaudited)
Largest Holdings* | Percent of net assets | ||||||
Wells Fargo & Company | 5.54 | % | |||||
General Electric Company | 5.43 | % | |||||
American International Group, Inc. | 4.88 | % | |||||
The Goldman Sachs Group, Inc. | 4.78 | % | |||||
Seritage Growth Properties | 4.53 | % | |||||
Microsoft Corp. | 4.42 | % | |||||
Hewlett Packard Enterprise Company | 3.89 | % | |||||
AMERCO | 3.79 | % | |||||
Bank of America Corp. | 3.23 | % | |||||
Oracle Corp. | 3.19 | % |
* Excluding short-term securities.
COMMON STOCKS — 92.49% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 8.31% Media — 6.66% | |||||||||||
CBS Corp. | 228,300 | $ | 9,981,276 | ||||||||
Comcast Corp. | 291,700 | 9,932,385 | |||||||||
Discovery, Inc. (a) | 635,600 | 14,669,648 | |||||||||
News Corp. | 289,600 | 3,286,960 | |||||||||
37,870,269 | |||||||||||
Wireless Telecommunication Services — 1.65% | |||||||||||
Vodafone Group PLC — ADR | 488,300 | 9,414,424 | |||||||||
TOTAL COMMUNICATION SERVICES | 47,284,693 | ||||||||||
CONSUMER DISCRETIONARY — 3.10% Automobiles — 2.27% | |||||||||||
General Motors Company | 387,000 | 12,945,150 | |||||||||
Specialty Retail — 0.50% | |||||||||||
Office Depot, Inc. (c) | 1,104,900 | 2,850,642 | |||||||||
Textiles, Apparel & Luxury Goods — 0.33% | |||||||||||
JG Boswell Company | 3,401 | 1,870,550 | |||||||||
TOTAL CONSUMER DISCRETIONARY | 17,666,342 | ||||||||||
CONSUMER STAPLES — 2.91% Beverages — 1.13% | |||||||||||
PepsiCo, Inc. | 58,400 | 6,452,032 | |||||||||
Food Products — 1.78% | |||||||||||
Mondelez International, Inc. | 253,000 | 10,127,590 | |||||||||
TOTAL CONSUMER STAPLES | 16,579,622 | ||||||||||
ENERGY — 8.20% Energy Equipment & Services — 4.09% | |||||||||||
C&J Energy Services, Inc. (a) | 133,000 | 1,795,500 | |||||||||
Frank's International NV (a) | 2,408,700 | 12,573,414 | |||||||||
National Oilwell Varco, Inc. | 345,600 | 8,881,920 | |||||||||
23,250,834 |
Shares Held | Value | ||||||||||
Oil, Gas & Consumable Fuels — 4.11% | |||||||||||
Apache Corp. | 369,600 | $ | 9,702,000 | ||||||||
Cairn Energy PLC (a) (v) | 1,598,400 | 3,049,972 | |||||||||
Hess Corp. | 54,300 | 2,199,150 | |||||||||
Marathon Oil Corp. | 200,300 | 2,872,302 | |||||||||
Ophir Energy PLC (a) | 5,942,000 | 2,703,801 | |||||||||
Rockhopper Exploration PLC (a) (v) | 5,048,100 | 1,353,199 | |||||||||
Whiting Petroleum Corp. (a) | 67,200 | 1,524,768 | |||||||||
23,405,192 | |||||||||||
TOTAL ENERGY | 46,656,026 | ||||||||||
FINANCIALS — 28.42% Banks — 11.59% | |||||||||||
Bank of America Corp. (c) | 745,800 | 18,376,512 | |||||||||
Citigroup, Inc. (c) | 165,300 | 8,605,518 | |||||||||
Credito Valtellinese SpA (a) (v) | 54,457,200 | 4,578,563 | |||||||||
JPMorgan Chase & Company (c) | 29,300 | 2,860,266 | |||||||||
Wells Fargo & Company | 684,500 | 31,541,760 | |||||||||
65,962,619 | |||||||||||
Capital Markets — 10.10% | |||||||||||
The Goldman Sachs Group, Inc. | 163,000 | 27,229,150 | |||||||||
Morgan Stanley | 272,600 | 10,808,590 | |||||||||
Motors Liquidation Company GUC Trust (a) (o) | 1,623,100 | 14,689,055 | |||||||||
State Street Corp. | 75,000 | 4,730,250 | |||||||||
57,457,045 | |||||||||||
Consumer Finance — 0.45% | |||||||||||
Capital One Financial Corp. | 33,900 | 2,562,501 | |||||||||
Insurance — 6.28% | |||||||||||
American International Group, Inc. (c) | 704,200 | 27,752,522 | |||||||||
Enstar Group Ltd. (a) | 25,100 | 4,206,007 | |||||||||
Global Indemnity Ltd. | 104,400 | 3,782,412 | |||||||||
35,740,941 | |||||||||||
TOTAL FINANCIALS | 161,723,106 |
The accompanying notes are an integral part of these financial statements.
34
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Value Opportunities Fund (Unaudited)
Shares Held | Value | ||||||||||
HEALTH CARE — 1.01% Health Care Providers & Services — 1.01% | |||||||||||
Hanger, Inc. (a) | 302,200 | $ | 5,726,690 | ||||||||
TOTAL HEALTH CARE | 5,726,690 | ||||||||||
INDUSTRIALS — 20.01% Air Freight & Logistics — 2.12% | |||||||||||
Royal Mail PLC (c) (v) | 3,466,700 | 12,032,524 | |||||||||
Airlines — 3.19% | |||||||||||
WestJet Airlines Ltd. | 1,375,500 | 18,135,804 | |||||||||
Building Products — 3.42% | |||||||||||
Johnson Controls International PLC | 516,700 | 15,320,155 | |||||||||
Masonite International Corp. (a) | 91,900 | 4,119,877 | |||||||||
19,440,032 | |||||||||||
Industrial Conglomerates — 5.43% | |||||||||||
General Electric Company | 4,084,500 | 30,919,665 | |||||||||
Machinery — 1.49% | |||||||||||
Danieli & C Officine Meccaniche SpA (c) | 572,600 | 8,463,135 | |||||||||
Marine — 0.46% | |||||||||||
Matson, Inc. | 82,300 | 2,635,246 | |||||||||
Professional Services — 0.11% | |||||||||||
Hudson Global, Inc. (a) | 481,700 | 650,295 | |||||||||
Road & Rail — 3.79% | |||||||||||
AMERCO | 65,800 | 21,589,638 | |||||||||
TOTAL INDUSTRIALS | 113,866,339 | ||||||||||
INFORMATION TECHNOLOGY — 13.01% Communications Equipment — 0.50% | |||||||||||
ARRIS International PLC (a) | 92,800 | 2,836,896 | |||||||||
Semiconductors & Semiconductor Equipment — 1.02% | |||||||||||
Texas Instruments, Inc. | 61,300 | 5,792,850 | |||||||||
Software — 7.61% | |||||||||||
Microsoft Corp. (c) | 247,800 | 25,169,046 | |||||||||
Oracle Corp. (c) | 402,100 | 18,154,815 | |||||||||
43,323,861 | |||||||||||
Technology Hardware, Storage & Peripherals — 3.88% | |||||||||||
Hewlett Packard Enterprise Company | 1,674,200 | 22,116,182 | |||||||||
TOTAL INFORMATION TECHNOLOGY | 74,069,789 | ||||||||||
MATERIALS — 1.58% Chemicals — 1.21% | |||||||||||
Iracore Investments Holdings, Inc. — Class A (Acquired 04/13/2017, Cost $6,892,250) (a) (f) (i) (m) (o) (u) | 32,422 | 6,892,269 |
Shares Held | Value | ||||||||||
Metals & Mining — 0.37% | |||||||||||
American Zinc Recycling LLC (Acquired 07/24/2014, Cost $7,500,000 (a) (f) (i) (m) (u) | 4,688 | $ | 2,094,411 | ||||||||
Elah Holdings, Inc. (a) (i) | 420 | 25,200 | |||||||||
2,119,611 | |||||||||||
TOTAL MATERIALS | 9,011,880 | ||||||||||
REAL ESTATE — 5.94% Equity Real Estate Investment Trusts — 5.28% | |||||||||||
The GEO Group, Inc. | 216,600 | 4,267,020 | |||||||||
Seritage Growth Properties (l) | 798,100 | 25,802,573 | |||||||||
30,069,593 | |||||||||||
Real Estate Management & Development — 0.66% | |||||||||||
Maui Land & Pineapple Company, Inc. (a) | 377,300 | 3,742,816 | |||||||||
TOTAL REAL ESTATE | 33,812,409 | ||||||||||
Total common stocks (Cost $594,561,414) | 526,396,896 | ||||||||||
PREFERRED STOCKS — 0.33% | |||||||||||
FINANCIALS — 0.33% Thrifts & Mortgage Finance — 0.33% | |||||||||||
Federal Home Loan Mortgage Corp. — Series K (a) | 33,900 | 362,730 | |||||||||
Federal Home Loan Mortgage Corp. — Series N (a) | 118,600 | 1,304,600 | |||||||||
Federal Home Loan Mortgage Corp. — Series S (a) | 18,700 | 185,878 | |||||||||
TOTAL FINANCIALS | 1,853,208 | ||||||||||
Total preferred stocks (Cost $274,261) | 1,853,208 | ||||||||||
CORPORATE BONDS — 2.68% | Principal Amount | ||||||||||
ENERGY — 0.41% Oil, Gas & Consumable Fuels — 0.41% | |||||||||||
Rockpoint Gas Storage Canada Ltd. 7.000%, 03/31/2023 (r) | $ | 2,500,000 | 2,362,500 | ||||||||
TOTAL ENERGY | 2,362,500 | ||||||||||
INDUSTRIALS — 2.27% Industrial Conglomerates — 2.27% | |||||||||||
General Electric Company 5.000% (Fixed until 01/20/2021, then 3 Month LIBOR USD + 3.330%), Perpetual | 16,850,000 | 12,911,312 | |||||||||
TOTAL INDUSTRIALS | 12,911,312 | ||||||||||
Total corporate bonds (Cost $15,480,334) | 15,273,812 |
The accompanying notes are an integral part of these financial statements.
35
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Value Opportunities Fund (Unaudited)
TERM LOANS — 0.67% | Principal Amount | Value | |||||||||||||
MATERIALS — 0.67% Chemicals — 0.67% | |||||||||||||||
Iracore International Holdings, Inc. 11.125% (1 Month LIBOR USD + 9.000%), 04/13/2021 (Acquired 04/13/2017, Cost $3,802,486) (b) (f) (i) (m) (u) | $ | 3,802,486 | $ | 3,802,486 | |||||||||||
TOTAL MATERIALS | 3,802,486 | ||||||||||||||
Total term loans (Cost $3,802,486) | 3,802,486 | ||||||||||||||
PURCHASED PUT OPTIONS — 1.25% | Contracts (100 shares per contract) | Notional Amount | |||||||||||||
CONSUMER DISCRETIONARY — 0.86% Automobiles — 0.86% | |||||||||||||||
Tesla, Inc. (a) Expiration: January 2020, Exercise Price: $300.00 | 570 | $ | 18,969,600 | 3,109,350 | |||||||||||
Expiration: June 2020, Exercise Price: $270.00 | 50 | 1,664,000 | 266,700 | ||||||||||||
Expiration: January 2021, Exercise Price: $300.00 | 50 | 1,664,000 | 375,000 | ||||||||||||
Expiration: January 2021, Exercise Price: $450.00 | 70 | 2,329,600 | 1,132,250 | ||||||||||||
TOTAL CONSUMER DISCRETIONARY | 4,883,300 | ||||||||||||||
INVESTMENT COMPANIES — 0.39% Exchange Traded Funds — 0.39% | |||||||||||||||
iShares China Large-Cap ETF (a) Expiration: January 2020, Exercise Price: $40.00 | 3,000 | 11,724,000 | 1,275,000 | ||||||||||||
Expiration: January 2021, Exercise Price: $40.00 | 1,700 | 6,643,600 | 982,600 | ||||||||||||
TOTAL INVESTMENT COMPANIES | 2,257,600 |
Total purchased put options (Cost $7,955,132) | 7,140,900 |
WARRANTS — 0.21% | Shares Held | ||||||||||
CONSUMER DISCRETIONARY — 0.10% Automobiles — 0.10% | |||||||||||
General Motors Company (a) Expiration: July 2019, Exercise Price: $18.33 | 33,866 | 531,358 | |||||||||
TOTAL CONSUMER DISCRETIONARY | 531,358 | ||||||||||
ENERGY — 0.00% Oil, Gas & Consumable Fuels — 0.00% | |||||||||||
Lonestar Resources America, Inc. (Acquired 09/30/2016, Cost $339,200) (a) (f) (i) (m) Expiration: December 2021, Exercise Price: $5.00 | 80,000 | 0 | |||||||||
TOTAL ENERGY | 0 |
Shares Held | Value | ||||||||||
FINANCIALS — 0.11% Insurance — 0.11% | |||||||||||
American International Group, Inc. (a) Expiration: January 2021, Exercise Price: $43.48 | 117,400 | $ | 638,656 | ||||||||
TOTAL FINANCIALS | 638,656 | ||||||||||
Total warrants (Cost $1,745,022) | 1,170,014 | ||||||||||
Total long-term investments (Cost $623,818,649) | 555,637,316 | ||||||||||
COLLATERAL FOR SECURITIES ON LOAN — 3.47% | |||||||||||
Money Market Funds — 3.47% | |||||||||||
Invesco Government & Agency Portfolio — Institutional Class, 2.30%^ | 19,733,046 | 19,733,046 | |||||||||
Total collateral for securities on loan (Cost $19,733,046) | 19,733,046 | ||||||||||
SHORT-TERM INVESTMENTS — 1.43% | Principal Amount | ||||||||||
Time Deposits — 1.43% | |||||||||||
Banco Bilbao Vizcaya Argentaria SA, 1.77%, 01/02/2019* | $ | 4,991,304 | 4,991,304 | ||||||||
Banco Santander SA, 1.77%, 01/02/2019* | 3,012,154 | 3,012,154 | |||||||||
Brown Brothers Harriman & Co., 0.83%, 01/02/2019* | AUD | 41 | 29 | ||||||||
Brown Brothers Harriman & Co., 0.37%, 01/02/2019* | GBP | 83 | 106 | ||||||||
Royal Bank of Canada, 0.84%, 01/02/2019* | CAD | 191,089 | 139,971 | ||||||||
8,143,564 | |||||||||||
Total short-term investments (Cost $8,143,504) | 8,143,564 | ||||||||||
Total investments — 102.53% (Cost $651,695,199) | 583,513,926 | ||||||||||
Liabilities in excess of other assets — (2.53)% | (14,406,508 | ) | |||||||||
Net assets — 100.00% | $ | 569,107,418 |
(a) — Non-income producing security.
(b) — The coupon rate shown on variable rate securities represents the rate at December 31, 2018.
(c) — All or a portion of this security is segregated as collateral for futures contracts and/or purchased put options.
(f) — Security was fair valued under guidelines established by and under the general supervision and responsibility of the Trust's Board of Trustees. The total market value of these securities was $12,789,166, which represented 2.25% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
(i) — Illiquid security.
(l) — All or a portion of this security is on loan. The total market value of securities on loan was $19,333,973. The remaining contractual maturity of all of the securities lending transactions is overnight and continuous.
The accompanying notes are an integral part of these financial statements.
36
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Value Opportunities Fund (Unaudited)
(m) — Restricted security. Purchased in a private placement transaction; resale to the public may require registration. The total market value of these securities was $12,789,166, which represented 2.25% of net assets.
(o) — Affiliated issuer. See Note 6 in Notes to the Financial Statements.
(r) — Rule 144A security of the Securities Act of 1933. Purchased in a private placement transaction; resale to the public may require registration or be limited to qualified institutional buyers. The total market value of these securities was $2,362,500, which represented 0.41% of net assets.
(u) — Value determined using significant unobservable inputs.
(v) — Security was fair valued as a result of market movements following the close of local trading using a third-party vendor's proprietary fair value pricing model. The total market value of these securities was $21,014,258, which represented 3.69% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
ADR — American Depositary Receipt
AUD — Australian Dollar
CAD — Canadian Dollar
GBP — British Pound
LIBOR — London Interbank Offered Rate
USD — United States Dollar
^ — Rate shown is the 7-day yield as of December 31, 2018.
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
Schedule of Futures Contracts — December 31, 2018
Hotchkis & Wiley Value Opportunities Fund (Unaudited)
Description | Number of Contracts Purchased (Sold) | Expiration | Notional Amount | Value/Unrealized Appreciation (Depreciation) | |||||||||||||||
British Pound Currency Futures | (76 | ) | March 2019 | $ | (6,075,250 | ) | $ | (44,776 | ) | ||||||||||
Euro Fx Currency Futures | (26 | ) | March 2019 | (3,744,813 | ) | (20,582 | ) | ||||||||||||
$ | (9,820,063 | ) | $ | (65,358 | ) |
The accompanying notes are an integral part of these financial statements.
37
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Capital Income Fund (Unaudited)
Largest Issuers | Percent of net assets | ||||||
American International Group, Inc. | 3.02 | % | |||||
Whiting Petroleum Corp. | 2.59 | % | |||||
General Electric Company | 2.05 | % | |||||
WestJet Airlines Ltd. | 1.85 | % | |||||
Discovery, Inc. | 1.69 | % | |||||
Hewlett Packard Enterprise Company | 1.61 | % | |||||
Seritage Growth Properties | 1.61 | % | |||||
Wells Fargo & Company | 1.61 | % | |||||
The Goldman Sachs Group, Inc. | 1.53 | % | |||||
Danieli & C Officine Meccaniche SpA | 1.51 | % |
COMMON STOCKS — 57.75% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 3.48% Media — 2.31% | |||||||||||
CBS Corp. | 1,572 | $ | 68,728 | ||||||||
Discovery, Inc. (a) | 20,143 | 464,899 | |||||||||
MDC Partners, Inc. (a) | 38,237 | 99,799 | |||||||||
633,426 | |||||||||||
Wireless Telecommunication Services — 1.17% | |||||||||||
Vodafone Group PLC — ADR (c) | 16,613 | 320,299 | |||||||||
TOTAL COMMUNICATION SERVICES | 953,725 | ||||||||||
CONSUMER DISCRETIONARY — 4.84% Auto Components — 1.14% | |||||||||||
Adient PLC | 9,002 | 135,570 | |||||||||
Magna International, Inc. | 3,877 | 176,210 | |||||||||
311,780 | |||||||||||
Automobiles — 1.27% | |||||||||||
General Motors Company | 10,414 | 348,348 | |||||||||
General Motors Company — Escrow (Acquired 12/31/2010, Cost $0) (a) (f) (i) (m) (u) | 4,600 | 0 | |||||||||
348,348 | |||||||||||
Specialty Retail — 1.57% | |||||||||||
Bed Bath & Beyond, Inc. | 8,415 | 95,258 | |||||||||
Kingfisher PLC — ADR | 13,823 | 72,156 | |||||||||
Office Depot, Inc. | 102,566 | 264,620 | |||||||||
432,034 | |||||||||||
Textiles, Apparel & Luxury Goods — 0.86% | |||||||||||
Quiksilver, Inc. (Acquired 07/11/2013 — 05/12/2016, Cost $351,163) (a) (f) (i) (m) (u) | 6,960 | 236,640 | |||||||||
TOTAL CONSUMER DISCRETIONARY | 1,328,802 |
Shares Held | Value | ||||||||||
CONSUMER STAPLES — 0.28% Food & Staples Retailing — 0.28% | |||||||||||
Tesco PLC — ADR | 10,524 | $ | 77,036 | ||||||||
TOTAL CONSUMER STAPLES | 77,036 | ||||||||||
ENERGY — 6.31% Energy Equipment & Services — 1.40% | |||||||||||
C&J Energy Services, Inc. (a) | 8,950 | 120,824 | |||||||||
Fieldwood Energy, Inc. (Acquired 05/03/2018, Cost $34,085) (a) (i) (m) | 1,461 | 56,979 | |||||||||
Fieldwood Energy, Inc. (Acquired 05/03/2018, Cost $22,408) (a) (i) (m) | 395 | 15,405 | |||||||||
Frank's International NV (a) | 12,209 | 63,731 | |||||||||
Nine Energy Service, Inc. (a) | 1,759 | 39,648 | |||||||||
Quintana Energy Services, Inc. (a) | 25,425 | 87,971 | |||||||||
384,558 | |||||||||||
Oil, Gas & Consumable Fuels — 4.91% | |||||||||||
Apache Corp. | 2,220 | 58,275 | |||||||||
Cairn Energy PLC — ADR (a) | 45,646 | 171,173 | |||||||||
Kosmos Energy Ltd. (a) | 47,786 | 194,489 | |||||||||
Murphy Oil Corp. | 2,717 | 63,551 | |||||||||
Ophir Energy PLC — ADR (a) | 196,582 | 178,752 | |||||||||
Rockhopper Exploration PLC (a) (v) | 110,687 | 29,671 | |||||||||
Warren Resources, Inc. (Acquired 11/23/2016, Cost $2,157) (a) (f) (i) (m) (u) | 1,559 | 2,156 | |||||||||
Whiting Petroleum Corp. (a) | 28,511 | 646,914 | |||||||||
1,344,981 | |||||||||||
TOTAL ENERGY | 1,729,539 |
The accompanying notes are an integral part of these financial statements.
38
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Capital Income Fund (Unaudited)
Shares Held | Value | ||||||||||
FINANCIALS — 18.28% Banks — 8.30% | |||||||||||
Bank of America Corp. | 8,189 | $ | 201,777 | ||||||||
Barclays PLC — ADR | 25,449 | 191,885 | |||||||||
BNP Paribas SA — ADR | 5,097 | 114,886 | |||||||||
Citigroup, Inc. | 6,443 | 335,424 | |||||||||
Citizens Financial Group, Inc. | 8,914 | 265,013 | |||||||||
Credito Valtellinese SpA (a) (v) | 2,896,539 | 243,530 | |||||||||
Popular, Inc. | 4,022 | 189,919 | |||||||||
Societe Generale SA — ADR | 46,560 | 292,863 | |||||||||
Wells Fargo & Company | 9,580 | 441,447 | |||||||||
2,276,744 | |||||||||||
Capital Markets — 4.16% | |||||||||||
Credit Suisse Group AG — ADR (a) | 13,700 | 148,782 | |||||||||
Fifth Street Asset Management, Inc. (a) | 176,631 | 234,919 | |||||||||
The Goldman Sachs Group, Inc. | 2,511 | 419,463 | |||||||||
Motors Liquidation Company GUC Trust (a) | 37,448 | 338,904 | |||||||||
1,142,068 | |||||||||||
Consumer Finance — 1.11% | |||||||||||
Capital One Financial Corp. | 2,021 | 152,767 | |||||||||
Synchrony Financial | 6,511 | 152,748 | |||||||||
305,515 | |||||||||||
Insurance — 4.71% | |||||||||||
American International Group, Inc. (c) | 21,045 | 829,383 | |||||||||
Global Indemnity Ltd. | 2,197 | 79,597 | |||||||||
Tokio Marine Holdings, Inc. — ADR | 4,754 | 225,435 | |||||||||
Zurich Insurance Group AG — ADR | 5,263 | 156,864 | |||||||||
1,291,279 | |||||||||||
TOTAL FINANCIALS | 5,015,606 | ||||||||||
HEALTH CARE — 1.80% Health Care Providers & Services — 0.41% | |||||||||||
Anthem, Inc. | 429 | 112,668 | |||||||||
Pharmaceuticals — 1.39% | |||||||||||
GlaxoSmithKline PLC — ADR | 5,618 | 214,664 | |||||||||
Sanofi — ADR | 3,858 | 167,476 | |||||||||
382,140 | |||||||||||
TOTAL HEALTH CARE | 494,808 | ||||||||||
INDUSTRIALS — 13.14% Aerospace & Defense — 1.91% | |||||||||||
BAE Systems PLC — ADR | 17,081 | 400,037 | |||||||||
Embraer SA — ADR | 5,623 | 124,437 | |||||||||
524,474 | |||||||||||
Air Freight & Logistics — 1.36% | |||||||||||
Royal Mail PLC — ADR | 54,402 | 373,198 |
Shares Held | Value | ||||||||||
Airlines — 1.85% | |||||||||||
WestJet Airlines Ltd. | 38,542 | $ | 508,172 | ||||||||
Building Products — 1.13% | |||||||||||
Johnson Controls International PLC | 3,666 | 108,697 | |||||||||
Masonite International Corp. (a) | 4,466 | 200,211 | |||||||||
308,908 | |||||||||||
Commercial Services & Supplies — 0.27% | |||||||||||
Quad/Graphics, Inc. | 5,918 | 72,910 | |||||||||
Construction & Engineering — 0.25% | |||||||||||
KBR, Inc. | 4,560 | 69,221 | |||||||||
Industrial Conglomerates — 1.76% | |||||||||||
General Electric Company | 63,765 | 482,701 | |||||||||
Machinery — 2.91% | |||||||||||
CNH Industrial NV | 13,230 | 121,848 | |||||||||
Cummins, Inc. | 1,951 | 260,732 | |||||||||
Danieli & C Officine Meccaniche SpA — ADR | 28,565 | 415,335 | |||||||||
797,915 | |||||||||||
Marine — 0.50% | |||||||||||
Matson, Inc. | 4,315 | 138,166 | |||||||||
Professional Services — 0.25% | |||||||||||
Hudson Global, Inc. (a) | 51,558 | 69,603 | |||||||||
Road & Rail — 0.49% | |||||||||||
AMERCO | 412 | 135,181 | |||||||||
Trading Companies & Distributors — 0.46% | |||||||||||
RA Parent, Inc. (Acquired 12/23/2014 — 01/18/2018, Cost $192,714) (a) (f) (i) (m) (u) | 3 | 124,848 | |||||||||
TOTAL INDUSTRIALS | 3,605,297 | ||||||||||
INFORMATION TECHNOLOGY — 5.37% Communications Equipment — 0.79% | |||||||||||
Telefonaktiebolaget LM Ericsson — ADR | 24,296 | 215,506 | |||||||||
Electronic Equipment, Instruments & Components — 0.60% | |||||||||||
Corning, Inc. (c) | 5,434 | 164,161 | |||||||||
Software — 2.37% | |||||||||||
Microsoft Corp. (c) | 2,885 | 293,029 | |||||||||
Oracle Corp. | 7,929 | 357,995 | |||||||||
651,024 | |||||||||||
Technology Hardware, Storage & Peripherals — 1.61% | |||||||||||
Hewlett Packard Enterprise Company | 33,483 | 442,310 | |||||||||
TOTAL INFORMATION TECHNOLOGY | 1,473,001 | ||||||||||
MATERIALS — 1.61% Chemicals — 0.21% | |||||||||||
Iracore Investments Holdings, Inc. — Class A (Acquired 04/13/2017, Cost $57,250) (a) (f) (i) (m) (u) | 269 | 57,184 |
The accompanying notes are an integral part of these financial statements.
39
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Capital Income Fund (Unaudited)
Shares Held | Value | ||||||||||
Metals & Mining — 1.40% | |||||||||||
American Zinc Recycling LLC (Acquired 07/19/2012 — 09/30/2016, Cost $404,157) (a) (f) (i) (m) (u) | 860 | $ | 384,214 | ||||||||
TOTAL MATERIALS | 441,398 | ||||||||||
REAL ESTATE — 2.64% Equity Real Estate Investment Trusts — 2.64% | |||||||||||
The GEO Group, Inc. (c) | 14,269 | 281,099 | |||||||||
Seritage Growth Properties | 13,669 | 441,919 | |||||||||
TOTAL REAL ESTATE | 723,018 | ||||||||||
Total common stocks (Cost $18,055,499) | 15,842,230 | ||||||||||
PREFERRED STOCKS — 0.25% | |||||||||||
CONSUMER STAPLES — 0.25% Food Products — 0.25% | |||||||||||
Pinnacle Agriculture Enterprises LLC (Acquired 03/10/2017, Cost $69,351) (a) (f) (i) (m) (u) | 94,387 | 69,846 | |||||||||
TOTAL CONSUMER STAPLES | 69,846 | ||||||||||
Total preferred stocks (Cost $69,351) | 69,846 | ||||||||||
CORPORATE BONDS — 37.14% | Principal Amount | ||||||||||
COMMUNICATION SERVICES — 4.11% Diversified Telecommunication Services — 0.48% | |||||||||||
Sable International Finance Ltd. 6.875%, 08/01/2022 (r) | $ | 40,000 | 40,920 | ||||||||
Uniti Group LP / Uniti Group Finance, Inc. / CSL Capital LLC 8.250%, 10/15/2023 | 104,000 | 91,000 | |||||||||
131,920 | |||||||||||
Media — 3.25% | |||||||||||
Altice Luxembourg SA 7.750%, 05/15/2022 (r) | 107,000 | 97,771 | |||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. 5.375%, 05/01/2025 (r) | 66,000 | 63,443 | |||||||||
5.750%, 02/15/2026 (r) | 74,000 | 72,705 | |||||||||
Harland Clarke Holdings Corp. 9.250%, 03/01/2021 (r) | 96,000 | 87,360 | |||||||||
8.375%, 08/15/2022 (r) | 33,000 | 30,236 | |||||||||
MDC Partners, Inc. 6.500%, 05/01/2024 (r) | 122,000 | 111,630 | |||||||||
Meredith Corp. 6.875%, 02/01/2026 (r) | 41,000 | 40,180 | |||||||||
Multi-Color Corp. 4.875%, 11/01/2025 (r) | 109,000 | 93,468 | |||||||||
Salem Media Group, Inc. 6.750%, 06/01/2024 (r) | 103,000 | 91,928 |
Principal Amount | Value | ||||||||||
Townsquare Media, Inc. 6.500%, 04/01/2023 (r) | $ | 111,000 | $ | 102,536 | |||||||
VTR Finance BV 6.875%, 01/15/2024 (r) | 99,000 | 99,371 | |||||||||
890,628 | |||||||||||
Wireless Telecommunication Services — 0.38% | |||||||||||
Telesat Canada / Telesat LLC 8.875%, 11/15/2024 (r) | 100,000 | 104,250 | |||||||||
TOTAL COMMUNICATION SERVICES | 1,126,798 | ||||||||||
CONSUMER DISCRETIONARY — 6.35% Auto Components — 0.85% | |||||||||||
Adient Global Holdings Ltd. 4.875%, 08/15/2026 (r) | 119,000 | 91,630 | |||||||||
Delphi Technologies PLC 5.000%, 10/01/2025 (r) | 78,000 | 65,851 | |||||||||
The Goodyear Tire & Rubber Company 4.875%, 03/15/2027 | 85,000 | 74,906 | |||||||||
232,387 | |||||||||||
Diversified Consumer Services — 0.34% | |||||||||||
Sotheby's 4.875%, 12/15/2025 (r) | 103,000 | 93,730 | |||||||||
Hotels, Restaurants & Leisure — 1.93% | |||||||||||
Boyd Gaming Corp. 6.000%, 08/15/2026 | 87,000 | 81,671 | |||||||||
Jacobs Entertainment, Inc. 7.875%, 02/01/2024 (r) | 66,000 | 68,145 | |||||||||
National CineMedia LLC 5.750%, 08/15/2026 | 130,000 | 117,360 | |||||||||
Penn National Gaming, Inc. 5.625%, 01/15/2027 (r) | 99,000 | 88,853 | |||||||||
Rivers Pittsburgh Borrower LP / Rivers Pittsburgh Finance Corp. 6.125%, 08/15/2021 (r) | 62,000 | 60,295 | |||||||||
Wyndham Hotels & Resorts, Inc. 5.375%, 04/15/2026 (r) | 49,000 | 47,285 | |||||||||
Wynn Macau Ltd. 5.500%, 10/01/2027 (r) | 74,000 | 64,565 | |||||||||
528,174 | |||||||||||
Household Durables — 1.27% | |||||||||||
TopBuild Corp. 5.625%, 05/01/2026 (r) | 100,000 | 92,000 | |||||||||
TRI Pointe Group, Inc. 5.250%, 06/01/2027 | 103,000 | 81,499 | |||||||||
Weekley Homes LLC / Weekley Finance Corp. 6.000%, 02/01/2023 | 186,000 | 174,840 | |||||||||
348,339 |
The accompanying notes are an integral part of these financial statements.
40
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Capital Income Fund (Unaudited)
Principal Amount | Value | ||||||||||
Leisure Products — 0.45% | |||||||||||
Silversea Cruise Finance Ltd. 7.250%, 02/01/2025 (r) | $ | 57,000 | $ | 60,545 | |||||||
Vista Outdoor, Inc. 5.875%, 10/01/2023 | 70,000 | 64,050 | |||||||||
124,595 | |||||||||||
Multiline Retail — 0.41% | |||||||||||
JC Penney Corp., Inc. 5.875%, 07/01/2023 (r) | 106,000 | 85,330 | |||||||||
8.625%, 03/15/2025 (r) | 53,000 | 28,620 | |||||||||
113,950 | |||||||||||
Specialty Retail — 0.72% | |||||||||||
Cumberland Farms, Inc. 6.750%, 05/01/2025 (r) | 8,000 | 8,100 | |||||||||
PetSmart, Inc. 7.125%, 03/15/2023 (r) | 29,000 | 17,038 | |||||||||
5.875%, 06/01/2025 (r) | 54,000 | 39,285 | |||||||||
Sonic Automotive, Inc. 5.000%, 05/15/2023 | 71,000 | 64,788 | |||||||||
Staples, Inc. 8.500%, 09/15/2025 (r) | 76,000 | 68,946 | |||||||||
198,157 | |||||||||||
Textiles, Apparel & Luxury Goods — 0.38% | |||||||||||
Eagle Intermediate Global Holding BV / Ruyi US Finance LLC 7.500%, 05/01/2025 (r) | 110,000 | 103,318 | |||||||||
TOTAL CONSUMER DISCRETIONARY | 1,742,650 | ||||||||||
CONSUMER STAPLES — 1.08% Food Products — 0.64% | |||||||||||
Pinnacle Operating Corp. 9.000%, 05/15/2023 (i) (r) | 135,499 | 91,461 | |||||||||
TreeHouse Foods, Inc. 6.000%, 02/15/2024 (r) | 86,000 | 85,463 | |||||||||
176,924 | |||||||||||
Household Products — 0.20% | |||||||||||
Central Garden & Pet Company 6.125%, 11/15/2023 | 55,000 | 55,138 | |||||||||
Personal Products — 0.24% | |||||||||||
Energizer Gamma Acquisition, Inc. 6.375%, 07/15/2026 (r) | 71,000 | 65,320 | |||||||||
TOTAL CONSUMER STAPLES | 297,382 | ||||||||||
ENERGY — 8.58% Energy Equipment & Services — 4.29% | |||||||||||
Apergy Corp. 6.375%, 05/01/2026 | 75,000 | 73,125 | |||||||||
Bellatrix Exploration Ltd. 8.500%, 05/15/2020 (i) (r) | 175,000 | 98,875 | |||||||||
Exterran Energy Solutions LP / EES Finance Corp. 8.125%, 05/01/2025 | 82,000 | 78,925 |
Principal Amount | Value | ||||||||||
Jonah Energy LLC / Jonah Energy Finance Corp. 7.250%, 10/15/2025 (r) | $ | 89,000 | $ | 57,850 | |||||||
KCA Deutag UK Finance PLC 9.875%, 04/01/2022 (r) | 95,000 | 78,375 | |||||||||
9.625%, 04/01/2023 (r) | 16,000 | 12,960 | |||||||||
McDermott Technology Americas, Inc. / McDermott Technology US, Inc. 10.625%, 05/01/2024 (r) | 104,000 | 88,140 | |||||||||
Moss Creek Resources Holdings, Inc. 7.500%, 01/15/2026 (r) | 103,000 | 89,610 | |||||||||
Nine Energy Service, Inc. 8.750%, 11/01/2023 (r) | 60,000 | 57,300 | |||||||||
Noble Holding International Ltd. 7.875%, 02/01/2026 (r) | 80,000 | 68,500 | |||||||||
PHI, Inc. 5.250%, 03/15/2019 | 160,000 | 110,399 | |||||||||
SESI LLC 7.750%, 09/15/2024 | 80,000 | 64,000 | |||||||||
Shelf Drilling Holdings Ltd. 8.250%, 02/15/2025 (r) | 114,000 | 97,898 | |||||||||
Transocean, Inc. 9.000%, 07/15/2023 (r) | 76,000 | 75,905 | |||||||||
Ultra Resources, Inc. 7.125%, 04/15/2025 (r) | 136,000 | 43,520 | |||||||||
Unit Corp. 6.625%, 05/15/2021 | 90,000 | 82,350 | |||||||||
1,177,732 | |||||||||||
Oil, Gas & Consumable Fuels — 4.29% | |||||||||||
American Midstream Partners LP / American Midstream Finance Corp. 9.500%, 12/15/2021 (r) | 86,000 | 81,270 | |||||||||
Callon Petroleum Company 6.375%, 07/01/2026 | 74,000 | 69,190 | |||||||||
Calumet Specialty Products Partners LP / Calumet Finance Corp. 6.500%, 04/15/2021 | 75,000 | 62,813 | |||||||||
Cheniere Corpus Christi Holdings LLC 5.875%, 03/31/2025 | 56,000 | 55,860 | |||||||||
GasLog Ltd. 8.875%, 03/22/2022 (i) | 137,000 | 139,054 | |||||||||
HighPoint Operating Corp. 8.750%, 06/15/2025 (i) | 94,000 | 89,770 | |||||||||
Holly Energy Partners LP / Holly Energy Finance Corp. 6.000%, 08/01/2024 (r) | 61,000 | 60,085 | |||||||||
Kosmos Energy Ltd. 7.875%, 08/01/2021 (r) | 38,000 | 37,953 | |||||||||
Lonestar Resources America, Inc. 11.250%, 01/01/2023 (r) | 86,000 | 81,915 | |||||||||
PBF Holding Company LLC / PBF Finance Corp. 7.250%, 06/15/2025 | 59,000 | 55,755 |
The accompanying notes are an integral part of these financial statements.
41
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Capital Income Fund (Unaudited)
Principal Amount | Value | ||||||||||
PBF Logistics LP / PBF Logistics Finance Corp. 6.875%, 05/15/2023 | $ | 77,000 | $ | 76,038 | |||||||
PetroQuest Energy, Inc. 10.000%, 02/15/2021 (d) (i) | 144,271 | 42,560 | |||||||||
Rockpoint Gas Storage Canada Ltd. 7.000%, 03/31/2023 (r) | 245,000 | 231,524 | |||||||||
Sanchez Energy Corp. 6.125%, 01/15/2023 | 151,000 | 27,935 | |||||||||
Whiting Petroleum Corp. 6.625%, 01/15/2026 | 74,000 | 63,825 | |||||||||
1,175,547 | |||||||||||
TOTAL ENERGY | 2,353,279 | ||||||||||
FINANCIALS — 1.07% Banks — 1.07% | |||||||||||
DAE Funding LLC 5.000%, 08/01/2024 (r) | 81,000 | 78,570 | |||||||||
Park Aerospace Holdings Ltd. 5.500%, 02/15/2024 (r) | 100,000 | 96,750 | |||||||||
Societe Generale SA 7.375% (Fixed until 09/12/2021, then 5 Year Swap Rate USD + 6.238%), Perpetual (r) | 120,000 | 117,150 | |||||||||
292,470 | |||||||||||
TOTAL FINANCIALS | 292,470 | ||||||||||
HEALTH CARE — 3.34% Health Care Equipment & Supplies — 0.27% | |||||||||||
Avanos Medical, Inc. 6.250%, 10/15/2022 (c) | 74,000 | 73,815 | |||||||||
Health Care Providers & Services — 1.76% | |||||||||||
Centene Corp. 5.375%, 06/01/2026 (r) | 66,000 | 64,350 | |||||||||
CHS / Community Health Systems, Inc. 6.875%, 02/01/2022 | 162,000 | 74,520 | |||||||||
6.250%, 03/31/2023 | 112,000 | 102,205 | |||||||||
DaVita, Inc. 5.000%, 05/01/2025 | 81,000 | 73,811 | |||||||||
DJO Finance LLC / DJO Finance Corp. 8.125%, 06/15/2021 (r) | 72,000 | 74,340 | |||||||||
HCA, Inc. 5.250%, 06/15/2026 | 11,000 | 10,945 | |||||||||
Tenet Healthcare Corp. 6.750%, 06/15/2023 | 88,000 | 82,940 | |||||||||
483,111 | |||||||||||
Pharmaceuticals — 1.31% | |||||||||||
Bausch Health Companies, Inc. 7.000%, 03/15/2024 (r) | 43,000 | 43,538 | |||||||||
6.125%, 04/15/2025 (r) | 180,000 | 157,500 | |||||||||
Endo Dac / Endo Finance LLC / Endo Finco, Inc. 6.000%, 07/15/2023 (r) | 96,000 | 73,680 |
Principal Amount | Value | ||||||||||
Mallinckrodt International Finance SA / Mallinckrodt CB LLC 5.625%, 10/15/2023 (r) | $ | 111,000 | $ | 84,915 | |||||||
359,633 | |||||||||||
TOTAL HEALTH CARE | 916,559 | ||||||||||
INDUSTRIALS — 5.54% Building Products — 1.34% | |||||||||||
Ashton Woods USA LLC / Ashton Woods Finance Company 6.750%, 08/01/2025 (r) | 115,000 | 100,624 | |||||||||
Builders FirstSource, Inc. 5.625%, 09/01/2024 (r) | 108,000 | 100,575 | |||||||||
Masonite International Corp. 5.750%, 09/15/2026 (r) | 72,000 | 68,040 | |||||||||
Standard Industries, Inc. 6.000%, 10/15/2025 (r) | 103,000 | 99,174 | |||||||||
368,413 | |||||||||||
Commercial Services & Supplies — 1.25% | |||||||||||
Aptim Corp. 7.750%, 06/15/2025 (r) | 105,000 | 80,325 | |||||||||
Herc Rentals, Inc. 7.750%, 06/01/2024 (r) | 81,000 | 84,848 | |||||||||
LSC Communications, Inc. 8.750%, 10/15/2023 (r) | 90,000 | 92,812 | |||||||||
Matthews International Corp. 5.250%, 12/01/2025 (r) | 91,000 | 84,858 | |||||||||
342,843 | |||||||||||
Construction & Engineering — 0.54% | |||||||||||
AECOM 5.875%, 10/15/2024 (c) | 64,000 | 63,280 | |||||||||
Tutor Perini Corp. 6.875%, 05/01/2025 (r) | 91,000 | 84,858 | |||||||||
148,138 | |||||||||||
Industrial Conglomerates — 0.29% | |||||||||||
General Electric Company 4.500%, 03/11/2044 | 40,000 | 32,776 | |||||||||
5.000% (Fixed until 01/20/2021, then 3 Month LIBOR USD + 3.330%), Perpetual | 60,000 | 45,975 | |||||||||
78,751 | |||||||||||
Machinery — 1.44% | |||||||||||
Cleaver-Brooks, Inc. 7.875%, 03/01/2023 (r) | 70,000 | 67,725 | |||||||||
EnPro Industries, Inc. 5.750%, 10/15/2026 (r) | 70,000 | 67,725 | |||||||||
Meritor, Inc. 6.250%, 02/15/2024 | 92,000 | 88,320 | |||||||||
Navistar International Corp. 6.625%, 11/01/2025 (r) | 103,000 | 99,909 |
The accompanying notes are an integral part of these financial statements.
42
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Capital Income Fund (Unaudited)
Principal Amount | Value | ||||||||||
Titan International, Inc. 6.500%, 11/30/2023 | $ | 80,000 | $ | 72,000 | |||||||
395,679 | |||||||||||
Professional Services — 0.39% | |||||||||||
Enviva Partners LP / Enviva Partners Finance Corp. 8.500%, 11/01/2021 | 105,000 | 108,019 | |||||||||
Trading Companies & Distributors — 0.29% | |||||||||||
Beacon Roofing Supply, Inc. 4.875%, 11/01/2025 (r) | 89,000 | 78,543 | |||||||||
TOTAL INDUSTRIALS | 1,520,386 | ||||||||||
INFORMATION TECHNOLOGY — 1.47% Communications Equipment — 0.32% | |||||||||||
CommScope Technologies LLC 6.000%, 06/15/2025 (r) | 96,000 | 87,840 | |||||||||
Electronic Equipment, Instruments & Components — 0.35% | |||||||||||
Ingram Micro, Inc. 5.450%, 12/15/2024 | 103,000 | 97,380 | |||||||||
Semiconductors & Semiconductor Equipment — 0.25% | |||||||||||
Qorvo, Inc. 5.500%, 07/15/2026 (r) | 71,000 | 67,983 | |||||||||
Software — 0.55% | |||||||||||
j2 Cloud Services LLC / j2 Global Co-Obligor, Inc. 6.000%, 07/15/2025 (r) | 70,000 | 68,688 | |||||||||
Nuance Communications, Inc. 5.625%, 12/15/2026 | 86,000 | 81,915 | |||||||||
150,603 | |||||||||||
TOTAL INFORMATION TECHNOLOGY | 403,806 | ||||||||||
MATERIALS — 4.69% Chemicals — 1.83% | |||||||||||
Alpha 3 BV / Alpha US Bidco, Inc. 6.250%, 02/01/2025 (r) | 103,000 | 97,335 | |||||||||
The Chemours Company 7.000%, 05/15/2025 | 33,000 | 33,413 | |||||||||
Hexion, Inc. 6.625%, 04/15/2020 | 108,000 | 86,400 | |||||||||
Momentive Performance Materials, Inc. 3.880%, 10/24/2021 | 66,000 | 70,208 | |||||||||
Platform Specialty Products Corp. 6.500%, 02/01/2022 (r) | 52,000 | 52,195 | |||||||||
5.875%, 12/01/2025 (r) | 51,000 | 47,940 | |||||||||
Rayonier AM Products, Inc. 5.500%, 06/01/2024 (r) | 129,000 | 114,164 | |||||||||
501,655 | |||||||||||
Containers & Packaging — 0.32% | |||||||||||
Plastipak Holdings, Inc. 6.250%, 10/15/2025 (r) | 99,000 | 88,110 |
Principal Amount | Value | ||||||||||
Metals & Mining — 1.13% | |||||||||||
Century Aluminum Company 7.500%, 06/01/2021 (r) | $ | 103,000 | $ | 101,970 | |||||||
Grinding Media, Inc. / Moly-Cop AltaSteel Ltd. 7.375%, 12/15/2023 (r) | 104,000 | 101,140 | |||||||||
Rain CII Carbon LLC / CII Carbon Corp. 7.250%, 04/01/2025 (r) | 116,000 | 105,560 | |||||||||
308,670 | |||||||||||
Paper & Forest Products — 1.41% | |||||||||||
Boise Cascade Company 5.625%, 09/01/2024 (r) | 100,000 | 94,250 | |||||||||
Mercer International, Inc. 7.375%, 01/15/2025 (r) | 95,000 | 95,000 | |||||||||
Neenah, Inc. 5.250%, 05/15/2021 (i) (r) | 100,000 | 98,875 | |||||||||
Schweitzer-Mauduit International, Inc. 6.875%, 10/01/2026 (r) | 106,000 | 99,905 | |||||||||
388,030 | |||||||||||
TOTAL MATERIALS | 1,286,465 | ||||||||||
REAL ESTATE — 0.39% Equity Real Estate Investment Trusts — 0.39% | |||||||||||
The GEO Group, Inc. 5.875%, 10/15/2024 | 119,000 | 105,613 | |||||||||
TOTAL REAL ESTATE | 105,613 | ||||||||||
UTILITIES — 0.52% Electric Utilities — 0.29% | |||||||||||
Itron, Inc. 5.000%, 01/15/2026 (r) | 87,000 | 79,823 | |||||||||
Independent Power and Renewable Electricity Producers — 0.23% | |||||||||||
NRG Energy, Inc. 7.250%, 05/15/2026 | 59,000 | 61,655 | |||||||||
TOTAL UTILITIES | 141,478 | ||||||||||
Total corporate bonds (Cost $11,321,955) | 10,186,886 | ||||||||||
TERM LOANS — 3.18% | |||||||||||
CONSUMER DISCRETIONARY — 1.06% Specialty Retail — 0.77% | |||||||||||
Office Depot, Inc. 7.705% (1 Month LIBOR USD + 5.250%), 11/08/2022 (Acquired 11/03/2017, Cost $43,819) (b) (m) | 44,928 | 45,377 | |||||||||
PetSmart, Inc. 5.380% (1 Month LIBOR USD + 3.000%), 03/11/2022 (Acquired 10/01/2018 — 12/17/2018, Cost $85,676) (b) (e) (m) | 99,793 | 79,193 | |||||||||
Staples, Inc. 6.541% (3 Month LIBOR USD + 4.000%), 09/12/2024 (Acquired 08/15/2017, Cost $88,677) (b) (m) | 88,900 | 85,437 | |||||||||
210,007 |
The accompanying notes are an integral part of these financial statements.
43
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Capital Income Fund (Unaudited)
Principal Amount | Value | ||||||||||
Textiles, Apparel & Luxury Goods — 0.29% | |||||||||||
Boardriders, Inc. 9.022% (1 Month LIBOR USD + 6.500%), 04/23/2024 (Acquired 03/21/2018, Cost $78,093) (b) (m) | $ | 79,600 | $ | 79,401 | |||||||
TOTAL CONSUMER DISCRETIONARY | 289,408 | ||||||||||
ENERGY — 0.98% Energy Equipment & Services — 0.62% | |||||||||||
Fieldwood Energy LLC 7.772% (1 Month LIBOR USD + 5.250%), 04/11/2022 (Acquired 04/11/2018, Cost $79,997) (b) (m) | 80,218 | 75,506 | |||||||||
9.772% (1 Month LIBOR USD + 7.250%), 04/11/2023 (Acquired 04/11/2018, Cost $104,756) (b) (m) | 108,296 | 95,625 | |||||||||
171,131 | |||||||||||
Oil, Gas & Consumable Fuels — 0.36% | |||||||||||
International Seaways Operating Corp. 8.530% (1 Month LIBOR USD + 6.000%), 06/22/2022 (Acquired 06/20/2017 — 08/07/2017, Cost $98,430) (b) (m) | 99,742 | 98,620 | |||||||||
TOTAL ENERGY | 269,751 | ||||||||||
HEALTH CARE — 0.43% Health Care Providers & Services — 0.40% | |||||||||||
Wink Holdco, Inc. 9.280% (1 Month LIBOR USD + 6.750%), 12/01/2025 (Acquired 11/02/2017 — 01/30/2018, Cost $114,538) (b) (m) | 115,000 | 109,442 | |||||||||
Pharmaceuticals — 0.03% | |||||||||||
Endo International PLC TBD, 04/29/2024 (Acquired 12/20/2018, Cost $9,575) (e) (m) | 9,974 | 9,475 | |||||||||
TOTAL HEALTH CARE | 118,917 | ||||||||||
INDUSTRIALS — 0.59% Commercial Services & Supplies — 0.26% | |||||||||||
Brookfield WEC Holdings, Inc. 6.272% (1 Month LIBOR USD + 3.750%), 08/01/2025 (Acquired 07/26/2018 — 08/09/2018, Cost $74,112) (b) (m) | 74,000 | 71,925 | |||||||||
Trading Companies & Distributors — 0.33% | |||||||||||
Foundation Building Materials LLC 5.705% (1 Month LIBOR USD + 3.250%), 08/13/2025 (Acquired 05/11/2018 — 06/19/2018, Cost $95,065) (b) (m) | 95,000 | 89,775 | |||||||||
TOTAL INDUSTRIALS | 161,700 |
Principal Amount | Value | ||||||||||
MATERIALS — 0.12% Chemicals — 0.12% | |||||||||||
Iracore International Holdings, Inc. 11.125% (1 Month LIBOR USD + 9.000%), 04/13/2021 (Acquired 04/13/2017, Cost $31,585) (b) (f) (i) (m) (u) | $ | 31,585 | $ | 31,585 | |||||||
TOTAL MATERIALS | 31,585 | ||||||||||
Total term loans (Cost $904,323) | 871,361 | ||||||||||
Total long-term investments (Cost $30,351,128) | 26,970,323 |
SHORT-TERM INVESTMENTS — 1.34% | Shares Held | ||||||
Money Market Funds — 0.95% |
JPMorgan U.S. Government Money Market Fund — Class IM, 1.91%^ | 260,270 | 260,270 | |||||||||
Principal Amount | |||||||||||
Time Deposits — 0.39% | |||||||||||
Brown Brothers Harriman & Co., 0.84% 01/02/2019* | CAD | 4,671 | 3,422 | ||||||||
Brown Brothers Harriman & Co., 0.37%, 01/02/2019* | GBP | 3 | 3 | ||||||||
National Australia Bank Ltd., 1.77%, 01/02/2019* | $ | 102,966 | 102,966 | ||||||||
106,391 | |||||||||||
Total short-term investments (Cost $366,660) | 366,661 | ||||||||||
Total investments — 99.66% (Cost $30,717,788) | 27,336,984 | ||||||||||
Other assets in excess of liabilities — 0.34% | 94,297 | ||||||||||
Net assets — 100.00% | $ | 27,431,281 |
(a) — Non-income producing security.
(b) — The coupon rate shown on variable rate securities represents the rate at December 31, 2018.
(c) — All or a portion of this security is segregated as collateral for delayed delivery securities.
(d) — Issuer is currently in default on its regularly scheduled interest payments.
(e) — Delayed delivery security.
(f) — Security was fair valued under guidelines established by and under the general supervision and responsibility of the Trust's Board of Trustees. The total market value of these securities was $906,473, which represented 3.30% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
(i) — Illiquid security.
The accompanying notes are an integral part of these financial statements.
44
Schedule of Investments — December 31, 2018
Hotchkis & Wiley Capital Income Fund (Unaudited)
(m) — Restricted security. Purchased in a private placement transaction; resale to the public may require registration. The total market value of these securities was $1,818,633, which represented 6.63% of net assets.
(r) — Rule 144A security of the Securities Act of 1933. Purchased in a private placement transaction; resale to the public may require registration or be limited to qualified institutional buyers. The total market value of these securities was $6,924,845, which represented 25.24% of net assets.
(u) — Value determined using significant unobservable inputs.
(v) — Security was fair valued as a result of market movements following the close of local trading using a third-party vendor's proprietary fair value pricing model. The total market value of these securities was $273,201, which represented 1.00% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
ADR — American Depositary Receipt
CAD — Canadian Dollar
GBP — British Pound
LIBOR — London Interbank Offered Rate
TBD — To be determined.
USD — United States Dollar
^ — Rate shown is the 7-day yield as of December 31, 2018.
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
45
Schedule of Investments — December 31, 2018
Hotchkis & Wiley High Yield Fund (Unaudited)
Largest Issuers | Percent of net assets | ||||||
American Zinc Recycling LLC | 1.44 | % | |||||
Quiksilver, Inc. (includes Boardriders, Inc. and Quiksilver, Inc.) | 1.33 | % | |||||
CCO Holdings LLC / CCO Holdings Capital Corp. | 1.25 | % | |||||
Bausch Health Companies, Inc. | 1.13 | % | |||||
Staples, Inc. | 1.12 | % | |||||
Pinnacle Agriculture Holdings LLC (includes Pinnacle Agriculture Enterprises LLC and Pinnacle Operating Corp.) | 1.10 | % | |||||
CHS / Community Health Systems, Inc. | 1.07 | % | |||||
Weekley Homes LLC / Weekley Finance Corp. | 1.04 | % | |||||
Harland Clarke Holdings Corp. | 1.03 | % | |||||
Century Aluminum Company | 0.97 | % |
CORPORATE BONDS — 88.03% | Principal Amount | Value | |||||||||
Advertising — 0.84% | |||||||||||
MDC Partners, Inc. 6.500%, 05/01/2024 (r) | $ | 21,726,000 | $ | 19,879,290 | |||||||
Auto Parts & Equipment — 2.76% | |||||||||||
Adient Global Holdings Ltd. 4.875%, 08/15/2026 (r) | 24,666,000 | 18,992,820 | |||||||||
Delphi Technologies PLC 5.000%, 10/01/2025 (r) | 15,938,000 | 13,455,497 | |||||||||
The Goodyear Tire & Rubber Company 4.875%, 03/15/2027 | 17,151,000 | 15,114,319 | |||||||||
Meritor, Inc. 6.250%, 02/15/2024 | 18,596,000 | 17,852,160 | |||||||||
65,414,796 | |||||||||||
Automakers — 0.79% | |||||||||||
Navistar International Corp. 6.625%, 11/01/2025 (r) | 19,448,000 | 18,864,560 | |||||||||
Banking — 0.60% | |||||||||||
Societe Generale SA 7.375% (Fixed until 09/12/2021, then 5 Year Swap Rate USD + 6.238%), Perpetual (r) | 14,549,000 | 14,203,461 | |||||||||
Building & Construction — 4.14% | |||||||||||
Ashton Woods USA LLC / Ashton Woods Finance Company 6.750%, 08/01/2025 (r) | 24,034,000 | 21,029,750 | |||||||||
TopBuild Corp. 5.625%, 05/01/2026 (r) | 19,267,000 | 17,725,640 | |||||||||
TRI Pointe Group, Inc. 5.250%, 06/01/2027 | 21,687,000 | 17,159,839 | |||||||||
Tutor Perini Corp. 6.875%, 05/01/2025 (r) | 18,928,000 | 17,650,360 | |||||||||
Weekley Homes LLC / Weekley Finance Corp. 6.000%, 02/01/2023 | 26,269,000 | 24,692,860 | |||||||||
98,258,449 | |||||||||||
Building Materials — 3.89% | |||||||||||
Beacon Roofing Supply, Inc. 4.875%, 11/01/2025 (r) | 19,246,000 | 16,984,595 |
Principal Amount | Value | ||||||||||
Builders FirstSource, Inc. 5.625%, 09/01/2024 (r) | $ | 20,510,000 | $ | 19,099,937 | |||||||
Masonite International Corp. 5.750%, 09/15/2026 (r) | 17,212,000 | 16,265,340 | |||||||||
Standard Industries, Inc. 6.000%, 10/15/2025 (r) | 20,543,000 | 19,779,828 | |||||||||
WESCO Distribution, Inc. 5.375%, 06/15/2024 | 21,460,000 | 20,306,525 | |||||||||
92,436,225 | |||||||||||
Cable & Satellite TV — 3.83% | |||||||||||
Altice Luxembourg SA 7.750%, 05/15/2022 (r) | 21,763,000 | 19,885,941 | |||||||||
Cable One, Inc. 5.750%, 06/15/2022 (r) | 11,020,000 | 11,102,650 | |||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. 5.375%, 05/01/2025 (r) | 13,873,000 | 13,335,421 | |||||||||
5.750%, 02/15/2026 (r) | 16,500,000 | 16,211,250 | |||||||||
Virgin Media Secured Finance PLC 5.250%, 01/15/2026 (r) | 14,941,000 | 13,745,720 | |||||||||
VTR Finance BV 6.875%, 01/15/2024 (r) | 16,558,000 | 16,620,093 | |||||||||
90,901,075 | |||||||||||
Chemicals — 3.70% | |||||||||||
Alpha 3 BV / Alpha US Bidco, Inc. 6.250%, 02/01/2025 (r) | 21,407,000 | 20,229,615 | |||||||||
The Chemours Company 7.000%, 05/15/2025 (c) | 11,085,000 | 11,223,562 | |||||||||
Hexion, Inc. 6.625%, 04/15/2020 (c) | 23,070,000 | 18,456,000 | |||||||||
Momentive Performance Materials, Inc. 3.880%, 10/24/2021 (c) | 19,048,000 | 20,262,310 | |||||||||
Momentive Performance Materials, Inc. — Escrow 8.875%, 10/15/2020 (Acquired 10/29/2014 — 11/24/2015, Cost $13) (a) (f) (i) (m) (u) | 24,222,000 | 0 |
The accompanying notes are an integral part of these financial statements.
46
Schedule of Investments — December 31, 2018
Hotchkis & Wiley High Yield Fund (Unaudited)
Principal Amount | Value | ||||||||||
Platform Specialty Products Corp. 6.500%, 02/01/2022 (r) | $ | 7,000,000 | $ | 7,026,250 | |||||||
5.875%, 12/01/2025 (r) | 11,303,000 | 10,624,820 | |||||||||
87,822,557 | |||||||||||
Consumer/Commercial/Lease Financing — 1.82% | |||||||||||
Credit Acceptance Corp. 7.375%, 03/15/2023 | 3,886,000 | 3,973,435 | |||||||||
DAE Funding LLC 5.250%, 11/15/2021 (r) | 5,300,000 | 5,227,125 | |||||||||
5.000%, 08/01/2024 (r) | 17,461,000 | 16,937,170 | |||||||||
Park Aerospace Holdings Ltd. 5.500%, 02/15/2024 (r) | 17,658,000 | 17,084,115 | |||||||||
43,221,845 | |||||||||||
Department Stores — 0.95% | |||||||||||
JC Penney Corp., Inc. 5.875%, 07/01/2023 (r) | 21,273,000 | 17,124,765 | |||||||||
8.625%, 03/15/2025 (r) | 10,090,000 | 5,448,600 | |||||||||
22,573,365 | |||||||||||
Diversified Capital Goods — 2.06% | |||||||||||
EnPro Industries, Inc. 5.750%, 10/15/2026 (r) | 13,935,000 | 13,482,112 | |||||||||
General Electric Company 4.500%, 03/11/2044 | 8,540,000 | 6,997,660 | |||||||||
5.000% (Fixed until 01/20/2021, then 3 Month LIBOR USD + 3.330%), Perpetual | 12,352,000 | 9,464,720 | |||||||||
Matthews International Corp. 5.250%, 12/01/2025 (r) | 20,370,000 | 18,995,025 | |||||||||
48,939,517 | |||||||||||
Electric — Generation — 0.56% | |||||||||||
NRG Energy, Inc. 7.250%, 05/15/2026 | 12,654,000 | 13,223,430 | |||||||||
Electronics — 1.17% | |||||||||||
Qorvo, Inc. 5.500%, 07/15/2026 (r) | 15,413,000 | 14,757,947 | |||||||||
Sensata Technologies BV 5.625%, 11/01/2024 (r) | 13,262,000 | 13,112,803 | |||||||||
27,870,750 | |||||||||||
Energy — Exploration & Production — 6.20% | |||||||||||
Bellatrix Exploration Ltd. 8.500%, 05/15/2020 (i) (r) | 21,501,000 | 12,148,065 | |||||||||
Callon Petroleum Company 6.375%, 07/01/2026 | 17,303,000 | 16,178,305 | |||||||||
HighPoint Operating Corp. 8.750%, 06/15/2025 (i) | 16,375,000 | 15,638,125 | |||||||||
Jonah Energy LLC / Jonah Energy Finance Corp. 7.250%, 10/15/2025 (r) | 20,849,000 | 13,551,850 | |||||||||
Kosmos Energy Ltd. 7.875%, 08/01/2021 (r) | 7,540,000 | 7,530,575 | |||||||||
Lonestar Resources America, Inc. 11.250%, 01/01/2023 (r) | 16,527,000 | 15,741,967 |
Principal Amount | Value | ||||||||||
Moss Creek Resources Holdings, Inc. 7.500%, 01/15/2026 (r) | $ | 20,997,000 | $ | 18,267,390 | |||||||
PetroQuest Energy, Inc. 10.000%, 02/15/2021 (d) (i) | 23,285,081 | 6,869,099 | |||||||||
Sanchez Energy Corp. 6.125%, 01/15/2023 (c) | 28,404,000 | 5,254,740 | |||||||||
Ultra Resources, Inc. 7.125%, 04/15/2025 (r) | 19,716,000 | 6,309,120 | |||||||||
Unit Corp. 6.625%, 05/15/2021 | 17,739,000 | 16,231,185 | |||||||||
Whiting Petroleum Corp. 6.625%, 01/15/2026 | 15,521,000 | 13,386,863 | |||||||||
147,107,284 | |||||||||||
Food — Wholesale — 1.40% | |||||||||||
Pinnacle Operating Corp. 9.000%, 05/15/2023 (i) (r) | 21,872,134 | 14,763,691 | |||||||||
TreeHouse Foods, Inc. 6.000%, 02/15/2024 (r) | 18,519,000 | 18,403,256 | |||||||||
33,166,947 | |||||||||||
Forestry/Paper — 4.72% | |||||||||||
Boise Cascade Company 5.625%, 09/01/2024 (r) | 15,308,000 | 14,427,790 | |||||||||
Enviva Partners LP / Enviva Partners Finance Corp. 8.500%, 11/01/2021 | 20,251,000 | 20,833,216 | |||||||||
Mercer International, Inc. 7.375%, 01/15/2025 (r) | 17,975,000 | 17,975,000 | |||||||||
Neenah, Inc. 5.250%, 05/15/2021 (i) (r) | 17,008,000 | 16,816,660 | |||||||||
Rayonier AM Products, Inc. 5.500%, 06/01/2024 (r) | 25,196,000 | 22,298,460 | |||||||||
Schweitzer-Mauduit International, Inc. 6.875%, 10/01/2026 (r) | 20,964,000 | 19,758,570 | |||||||||
112,109,696 | |||||||||||
Gaming — 3.34% | |||||||||||
Boyd Gaming Corp. 6.000%, 08/15/2026 | 17,263,000 | 16,205,641 | |||||||||
Jacobs Entertainment, Inc. 7.875%, 02/01/2024 (r) | 16,569,000 | 17,107,492 | |||||||||
Penn National Gaming, Inc. 5.625%, 01/15/2027 (r) | 20,635,000 | 18,519,913 | |||||||||
Rivers Pittsburgh Borrower LP / Rivers Pittsburgh Finance Corp. 6.125%, 08/15/2021 (r) | 12,043,000 | 11,711,818 | |||||||||
Wynn Macau Ltd. 5.500%, 10/01/2027 (r) | 18,024,000 | 15,725,940 | |||||||||
79,270,804 | |||||||||||
Gas Distribution — 3.34% | |||||||||||
American Midstream Partners LP / American Midstream Finance Corp. 9.500%, 12/15/2021 (r) | 18,226,000 | 17,223,570 |
The accompanying notes are an integral part of these financial statements.
47
Schedule of Investments — December 31, 2018
Hotchkis & Wiley High Yield Fund (Unaudited)
Principal Amount | Value | ||||||||||
Cheniere Corpus Christi Holdings LLC 5.875%, 03/31/2025 | $ | 12,946,000 | $ | 12,913,635 | |||||||
Holly Energy Partners LP / Holly Energy Finance Corp. 6.000%, 08/01/2024 (r) | 15,012,000 | 14,786,820 | |||||||||
PBF Logistics LP / PBF Logistics Finance Corp. 6.875%, 05/15/2023 | 17,397,000 | 17,179,537 | |||||||||
Rockpoint Gas Storage Canada Ltd. 7.000%, 03/31/2023 (r) | 18,130,000 | 17,132,850 | |||||||||
79,236,412 | |||||||||||
Health Facilities — 2.67% | |||||||||||
CHS / Community Health Systems, Inc. 6.875%, 02/01/2022 | 17,553,000 | 8,074,380 | |||||||||
6.250%, 03/31/2023 | 18,951,000 | 17,293,735 | |||||||||
HCA, Inc. 5.375%, 02/01/2025 (c) | 16,266,000 | 15,900,015 | |||||||||
5.250%, 06/15/2026 | 5,000,000 | 4,975,000 | |||||||||
Tenet Healthcare Corp. 6.750%, 06/15/2023 (c) | 18,091,000 | 17,050,768 | |||||||||
63,293,898 | |||||||||||
Health Services — 0.71% | |||||||||||
DaVita, Inc. 5.000%, 05/01/2025 | 18,441,000 | 16,804,361 | |||||||||
Hotels — 0.64% | |||||||||||
Wyndham Hotels & Resorts, Inc. 5.375%, 04/15/2026 (r) | 15,871,000 | 15,315,515 | |||||||||
Machinery — 1.85% | |||||||||||
Cleaver-Brooks, Inc. 7.875%, 03/01/2023 (r) | 15,643,000 | 15,134,603 | |||||||||
Itron, Inc. 5.000%, 01/15/2026 (r) | 17,648,000 | 16,192,040 | |||||||||
Welbilt, Inc. 9.500%, 02/15/2024 | 11,655,000 | 12,514,556 | |||||||||
43,841,199 | |||||||||||
Managed Care — 1.09% | |||||||||||
Centene Corp. 5.375%, 06/01/2026 (r) | 12,716,000 | 12,398,100 | |||||||||
WellCare Health Plans, Inc. 5.375%, 08/15/2026 (r) | 13,887,000 | 13,435,673 | |||||||||
25,833,773 | |||||||||||
Media — Diversified — 0.86% | |||||||||||
National CineMedia LLC 5.750%, 08/15/2026 | 22,586,000 | 20,390,189 | |||||||||
Media Content — 1.65% | |||||||||||
Salem Media Group, Inc. 6.750%, 06/01/2024 (r) | 20,706,000 | 18,480,105 | |||||||||
Townsquare Media, Inc. 6.500%, 04/01/2023 (r) | 22,269,000 | 20,570,989 | |||||||||
39,051,094 |
Principal Amount | Value | ||||||||||
Medical Products — 1.27% | |||||||||||
Avanos Medical, Inc. 6.250%, 10/15/2022 | $ | 16,430,000 | $ | 16,388,925 | |||||||
Hill-Rom Holdings, Inc. 5.750%, 09/01/2023 (r) | 13,606,000 | 13,657,023 | |||||||||
30,045,948 | |||||||||||
Metals/Mining Excluding Steel — 3.10% | |||||||||||
Century Aluminum Company 7.500%, 06/01/2021 (r) | 23,330,000 | 23,096,700 | |||||||||
Grinding Media, Inc. / Moly-Cop AltaSteel Ltd. 7.375%, 12/15/2023 (r) | 16,157,000 | 15,712,683 | |||||||||
Kaiser Aluminum Corp. 5.875%, 05/15/2024 | 13,107,000 | 12,844,860 | |||||||||
Rain CII Carbon LLC / CII Carbon Corp. 7.250%, 04/01/2025 (r) | 24,014,000 | 21,852,740 | |||||||||
73,506,983 | |||||||||||
Oil Field Equipment & Services — 5.55% | |||||||||||
Exterran Energy Solutions LP / EES Finance Corp. 8.125%, 05/01/2025 | 15,859,000 | 15,264,287 | |||||||||
KCA Deutag UK Finance PLC 9.875%, 04/01/2022 (r) | 19,809,000 | 16,342,425 | |||||||||
9.625%, 04/01/2023 (r) | 4,111,000 | 3,329,910 | |||||||||
McDermott Technology Americas, Inc. / McDermott Technology US, Inc. 10.625%, 05/01/2024 (r) | 20,647,000 | 17,498,333 | |||||||||
Nine Energy Service, Inc. 8.750%, 11/01/2023 (r) | 13,554,000 | 12,944,070 | |||||||||
PHI, Inc. 5.250%, 03/15/2019 | 24,410,000 | 16,842,900 | |||||||||
SESI LLC 7.750%, 09/15/2024 | 15,699,000 | 12,559,200 | |||||||||
Shelf Drilling Holdings Ltd. 8.250%, 02/15/2025 (r) | 23,887,000 | 20,512,961 | |||||||||
Transocean, Inc. 9.000%, 07/15/2023 (r) | 16,356,000 | 16,335,555 | |||||||||
131,629,641 | |||||||||||
Oil Refining & Marketing — 1.07% | |||||||||||
Calumet Specialty Products Partners LP / Calumet Finance Corp. 6.500%, 04/15/2021 | 15,859,000 | 13,281,912 | |||||||||
PBF Holding Company LLC / PBF Finance Corp. 7.250%, 06/15/2025 | 12,809,000 | 12,104,505 | |||||||||
25,386,417 | |||||||||||
Packaging — 0.74% | |||||||||||
Plastipak Holdings, Inc. 6.250%, 10/15/2025 (r) | 19,645,000 | 17,484,050 | |||||||||
Personal & Household Products — 1.74% | |||||||||||
Central Garden & Pet Company 6.125%, 11/15/2023 | 13,220,000 | 13,253,050 | |||||||||
Energizer Gamma Acquisition, Inc. 6.375%, 07/15/2026 (r) | 15,118,000 | 13,908,560 |
The accompanying notes are an integral part of these financial statements.
48
Schedule of Investments — December 31, 2018
Hotchkis & Wiley High Yield Fund (Unaudited)
Principal Amount | Value | ||||||||||
Vista Outdoor, Inc. 5.875%, 10/01/2023 | $ | 15,524,000 | $ | 14,204,460 | |||||||
41,366,070 | |||||||||||
Pharmaceuticals — 2.46% | |||||||||||
Bausch Health Companies, Inc. 7.000%, 03/15/2024 (r) | 7,541,000 | 7,635,263 | |||||||||
6.125%, 04/15/2025 (r) | 21,884,000 | 19,148,500 | |||||||||
Endo Dac / Endo Finance LLC / Endo Finco, Inc. 6.000%, 07/15/2023 (r) | 18,911,000 | 14,514,192 | |||||||||
Mallinckrodt International Finance SA / Mallinckrodt CB LLC 5.625%, 10/15/2023 (r) | 22,445,000 | 17,170,425 | |||||||||
58,468,380 | |||||||||||
Printing & Publishing — 3.03% | |||||||||||
Harland Clarke Holdings Corp. 9.250%, 03/01/2021 (r) | 20,307,000 | 18,479,370 | |||||||||
8.375%, 08/15/2022 (r) | 6,626,000 | 6,071,072 | |||||||||
LSC Communications, Inc. 8.750%, 10/15/2023 (r) | 16,430,000 | 16,943,438 | |||||||||
Meredith Corp. 6.875%, 02/01/2026 (r) | 12,049,000 | 11,808,020 | |||||||||
Multi-Color Corp. 4.875%, 11/01/2025 (r) | 21,624,000 | 18,542,580 | |||||||||
71,844,480 | |||||||||||
Recreation & Travel — 0.63% | |||||||||||
Silversea Cruise Finance Ltd. 7.250%, 02/01/2025 (r) | 14,047,000 | 14,920,723 | |||||||||
Software/Services — 2.24% | |||||||||||
j2 Cloud Services LLC / j2 Global Co-Obligor, Inc. 6.000%, 07/15/2025 (r) | 13,729,000 | 13,471,581 | |||||||||
Nuance Communications, Inc. 5.625%, 12/15/2026 | 17,734,000 | 16,891,635 | |||||||||
PTC, Inc. 6.000%, 05/15/2024 | 10,334,000 | 10,411,505 | |||||||||
VeriSign, Inc. 5.250%, 04/01/2025 | 12,529,000 | 12,450,694 | |||||||||
53,225,415 | |||||||||||
Specialty Retail — 1.70% | |||||||||||
Murphy Oil USA, Inc. 5.625%, 05/01/2027 | 16,394,000 | 15,820,210 | |||||||||
PetSmart, Inc. 7.125%, 03/15/2023 (r) | 5,940,000 | 3,489,750 | |||||||||
5.875%, 06/01/2025 (r) | 6,334,000 | 4,607,985 | |||||||||
Sonic Automotive, Inc. 5.000%, 05/15/2023 | 17,940,000 | 16,370,250 | |||||||||
40,288,195 | |||||||||||
Support — Services — 4.26% | |||||||||||
AECOM 5.875%, 10/15/2024 (c) | 15,397,000 | 15,223,784 |
Principal Amount | Value | ||||||||||
Aptim Corp. 7.750%, 06/15/2025 (r) | $ | 21,453,000 | $ | 16,411,545 | |||||||
The GEO Group, Inc. 5.875%, 10/15/2024 | 23,524,000 | 20,877,550 | |||||||||
Herc Rentals, Inc. 7.750%, 06/01/2024 (r) | 16,048,000 | 16,810,280 | |||||||||
Sotheby's 4.875%, 12/15/2025 (r) | 20,372,000 | 18,538,520 | |||||||||
Staples, Inc. 8.500%, 09/15/2025 (r) | 14,606,000 | 13,250,561 | |||||||||
101,112,240 | |||||||||||
Technology Hardware & Equipment — 1.66% | |||||||||||
CDW LLC / CDW Finance Corp. 5.500%, 12/01/2024 | 6,984,000 | 6,931,620 | |||||||||
CommScope Technologies LLC 6.000%, 06/15/2025 (r) | 19,841,000 | 18,154,515 | |||||||||
Ingram Micro, Inc. 5.450%, 12/15/2024 | 15,139,000 | 14,313,041 | |||||||||
39,399,176 | |||||||||||
Telecom — Wireless — 0.86% | |||||||||||
Telesat Canada / Telesat LLC 8.875%, 11/15/2024 (r) | 19,509,000 | 20,338,133 | |||||||||
Telecom — Wireline Integrated & Services — 0.93% | |||||||||||
Sable International Finance Ltd. 6.875%, 08/01/2022 (r) | 4,298,000 | 4,396,854 | |||||||||
Uniti Group LP / Uniti Group Finance, Inc. / CSL Capital LLC 8.250%, 10/15/2023 | 20,301,000 | 17,763,375 | |||||||||
22,160,229 | |||||||||||
Transport Infrastructure/Services — 1.21% | |||||||||||
GasLog Ltd. 8.875%, 03/22/2022 (i) | 19,728,000 | 20,023,920 | |||||||||
XPO Logistics, Inc. 6.500%, 06/15/2022 (r) | 8,701,000 | 8,657,495 | |||||||||
28,681,415 | |||||||||||
Total corporate bonds (Cost $2,303,620,750) | 2,088,887,987 | ||||||||||
TERM LOANS — 4.88% | |||||||||||
Building Materials — 0.66% | |||||||||||
Foundation Building Materials LLC 5.705% (1 Month LIBOR USD + 3.250%), 08/13/2025 (Acquired 05/11/2018 — 06/19/2018, Cost $16,516,657) (b) (m) | 16,500,000 | 15,592,500 | |||||||||
Energy — Exploration & Production — 0.65% | |||||||||||
Fieldwood Energy LLC 7.772% (1 Month LIBOR USD + 5.250%), 04/11/2022 (Acquired 04/11/2018, Cost $7,228,724) (b) (m) | 7,248,658 | 6,822,835 | |||||||||
9.772% (1 Month LIBOR USD + 7.250%), 04/11/2023 (Acquired 04/11/2018, Cost $9,465,891) (b) (m) | 9,785,808 | 8,640,869 | |||||||||
15,463,704 |
The accompanying notes are an integral part of these financial statements.
49
Schedule of Investments — December 31, 2018
Hotchkis & Wiley High Yield Fund (Unaudited)
Principal Amount | Value | ||||||||||
Managed Care — 0.33% | |||||||||||
Wink Holdco, Inc. 5.522% (1 Month LIBOR USD + 3.000%), 12/02/2024 (Acquired 11/02/2017 — 12/20/2017, Cost $8,181,712) (b) (m) | $ | 8,167,500 | $ | 7,774,439 | |||||||
Oil Field Equipment & Services — 0.11% | |||||||||||
Iracore International Holdings, Inc. 11.125% (1 Month LIBOR USD + 9.000%), 04/13/2021 (Acquired 04/13/2017, Cost $2,590,943) (b) (f) (i) (m) (u) | 2,590,943 | 2,590,943 | |||||||||
Pharmaceuticals — 0.14% | |||||||||||
Endo International PLC TBD, 04/29/2024 (Acquired 12/20/2018, Cost $3,447,250) (e) (m) | 3,590,886 | 3,411,342 | |||||||||
Specialty Retail — 1.94% | |||||||||||
Boardriders, Inc. 9.022% (1 Month LIBOR USD + 6.500%), 04/23/2024 (Acquired 03/21/2018, Cost $11,440,611) (b) (m) | 11,661,400 | 11,632,246 | |||||||||
Office Depot, Inc. 7.705% (1 Month LIBOR USD + 5.250%), 11/08/2022 (Acquired 11/03/2017 — 11/21/2017, Cost $7,247,707) (b) (m) | 7,415,905 | 7,490,064 | |||||||||
PetSmart, Inc. 5.380% (1 Month LIBOR USD + 3.000%), 03/11/2022 (Acquired 10/01/2018 — 12/17/2018, Cost $14,397,856) (b) (e) (m) | 16,811,161 | 13,340,833 | |||||||||
Staples, Inc. 6.541% (3 Month LIBOR USD + 4.000%), 09/12/2024 (Acquired 08/15/2017, Cost $13,946,546) (b) (m) | 13,981,500 | 13,436,851 | |||||||||
45,899,994 | |||||||||||
Support — Services — 0.51% | |||||||||||
Brookfield WEC Holdings, Inc. 6.272% (1 Month LIBOR USD + 3.750%), 08/01/2025 (Acquired 07/26/2018 — 08/09/2018, Cost $12,543,232) (b) (m) | 12,523,000 | 12,171,918 | |||||||||
Transportation Excluding Air/Rail — 0.54% | |||||||||||
International Seaways Operating Corp. 8.530% (1 Month LIBOR USD + 6.000%), 06/22/2022 (Acquired 06/20/2017 — 08/07/2017, Cost $12,798,002) (b) (m) | 12,988,705 | 12,842,582 | |||||||||
Total term loans (Cost $119,805,131) | 115,747,422 | ||||||||||
PREFERRED STOCKS — 0.47% | Shares Held | ||||||||||
Food — Wholesale — 0.47% | |||||||||||
Pinnacle Agriculture Enterprises LLC (Acquired 03/10/2017, Cost $11,192,395) (a) (f) (i) (m) (u) | 15,232,907 | 11,272,351 | |||||||||
Total preferred stocks (Cost $11,192,395) | 11,272,351 |
COMMON STOCKS — 3.21% | Shares Held | Value | |||||||||
Automakers — 0.00% | |||||||||||
General Motors Company — Escrow (Acquired 11/17/2009 — 04/06/2011, Cost $0) (a) (f) (i) (m) (u) | 352,400 | $ | 0 | ||||||||
Energy — Exploration & Production — 0.24% | |||||||||||
Fieldwood Energy, Inc. (Acquired 05/03/2018, Cost $1,705,030) (a) (i) (m) | 30,033 | 1,171,287 | |||||||||
Fieldwood Energy, Inc. (Acquired 05/03/2018, Cost $2,595,253) (a) (i) (m) | 111,241 | 4,338,399 | |||||||||
Warren Resources, Inc. (Acquired 11/23/2016, Cost $160,767) (a) (f) (i) (m) (u) | 116,226 | 160,741 | |||||||||
5,670,427 | |||||||||||
Metals/Mining Excluding Steel — 1.93% | |||||||||||
American Zinc Recycling LLC (Acquired 07/19/2012 — 09/30/2016, Cost $35,758,540) (a) (f) (i) (m) (o) (u) | 76,444 | 34,152,121 | |||||||||
RA Parent, Inc. (Acquired 12/23/2014 — 01/18/2018, Cost $17,853,515) (a) (f) (i) (m) (o) (u) | 288 | 11,731,221 | |||||||||
45,883,342 | |||||||||||
Oil Field Equipment & Services — 0.20% | |||||||||||
Iracore Investments Holdings, Inc. — Class A (Acquired 04/13/2017, Cost $4,696,250) (a) (f) (i) (m) (o) (u) | 22,092 | 4,696,318 | |||||||||
Specialty Retail — 0.84% | |||||||||||
Quiksilver, Inc. (Acquired 07/11/2013 — 05/12/2016, Cost $28,586,327) (a) (f) (i) (m) (u) | 582,983 | 19,821,422 | |||||||||
Total common stocks (Cost $91,355,681) | 76,071,509 | ||||||||||
WARRANTS — 0.00% | |||||||||||
Energy — Exploration & Production — 0.00% | |||||||||||
Lonestar Resources America, Inc. (Acquired 08/19/2016 — 09/30/2016, Cost $763,200) (a) (f) (i) (m) Expiration: December 2021, Exercise Price $5.00 | 180,000 | 0 | |||||||||
Total warrants (Cost $763,200) | 0 | ||||||||||
Total long-term investments (Cost $2,526,737,157) | 2,291,979,269 | ||||||||||
SHORT-TERM INVESTMENTS — 2.12% | |||||||||||
Money Market Funds — 1.77% | |||||||||||
JPMorgan U.S. Government Money Market Fund — Class IM, 1.91%^ | 42,119,426 | 42,119,426 |
The accompanying notes are an integral part of these financial statements.
50
Schedule of Investments — December 31, 2018
Hotchkis & Wiley High Yield Fund (Unaudited)
Principal Amount | Value | ||||||||||
Time Deposits — 0.35% | |||||||||||
Banco Santander SA, 1.77%, 01/02/2019* | $ | 8,231,662 | $ | 8,231,662 | |||||||
Total short-term investments (Cost $50,351,088) | 50,351,088 | ||||||||||
Total investments — 98.71% (Cost $2,577,088,245) | 2,342,330,357 | ||||||||||
Other assets in excess of liabilities — 1.29% | 30,656,665 | ||||||||||
Net assets — 100.00% | $ | 2,372,987,022 |
(a) — Non-income producing security.
(b) — The coupon rate shown on variable rate securities represents the rate at December 31, 2018.
(c) — All or a portion of this security is segregated as collateral for delayed delivery securities.
(d) — Issuer is currently in default on its regularly scheduled interest payments.
(e) — Delayed delivery security.
(f) — Security was fair valued under guidelines established by and under the general supervision and responsibility of the Trust's Board of Trustees. The total market value of these securities was $84,425,117, which represented 3.56% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
(i) — Illiquid security.
(m) — Restricted security. Purchased in a private placement transaction; resale to the public may require registration. The total market value of these securities was $203,091,282, which represented 8.56% of net assets.
(o) — Affiliated issuer. See Note 6 in Notes to the Financial Statements.
(r) — Rule 144A security of the Securities Act of 1933. Purchased in a private placement transaction; resale to the public may require registration or be limited to qualified institutional buyers. The total market value of these securities was $1,362,646,134, which represented 57.42% of net assets.
(u) — Value determined using significant unobservable inputs.
LIBOR — London Interbank Offered Rate
TBD — To be determined.
USD — United States Dollar
^ — Rate shown is the 7-day yield as of December 31, 2018.
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
51
Statements of Assets & Liabilities
DECEMBER 31, 2018 (UNAUDITED)
Diversified Value Fund | Large Cap Value Fund | Mid-Cap Value Fund | Small Cap Value Fund | Small Cap Diversified Value Fund | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Long-term investments, at value* | |||||||||||||||||||||||
Unaffiliated issuers | $ | 87,126,123 | $ | 381,970,747 | $ | 1,304,337,256 | $ | 613,538,870 | $ | 38,032,442 | |||||||||||||
Affiliated issuers | — | — | 25,745,217 | 2,966,465 | — | ||||||||||||||||||
Collateral for securities on loan* | — | — | — | 24,116,823 | — | ||||||||||||||||||
Short-term investments* | 648,394 | 13,049,677 | 5,234,037 | 24,482,165 | 1,108,597 | ||||||||||||||||||
Dividends and interest receivable | 221,890 | 1,018,124 | 2,790,780 | 1,058,257 | 44,371 | ||||||||||||||||||
Receivable for investments sold | — | — | — | 100,857 | 23,546 | ||||||||||||||||||
Receivable for Fund shares sold | 3,912 | 5,107,197 | 3,199,765 | 2,354,309 | 534,576 | ||||||||||||||||||
Other assets | 21,652 | 22,227 | 69,041 | 29,858 | 24,251 | ||||||||||||||||||
Total assets | $ | 88,021,971 | $ | 401,167,972 | $ | 1,341,376,096 | $ | 668,647,604 | $ | 39,767,783 | |||||||||||||
Liabilities: | |||||||||||||||||||||||
Collateral upon return of securities on loan | $ | — | $ | — | $ | — | $ | 24,116,823 | $ | — | |||||||||||||
Payable for investments purchased | — | 5,002,516 | — | 374,243 | 5,792 | ||||||||||||||||||
Payable for Fund shares repurchased | 278,021 | 848,022 | 8,617,275 | 2,615,645 | 18,797 | ||||||||||||||||||
Payable to Advisor | 35,085 | 221,980 | 939,039 | 434,506 | 5,532 | ||||||||||||||||||
Payable to Trustees | 61 | — | 913 | — | — | ||||||||||||||||||
Accrued distribution and service fees | 49,850 | 206,106 | 279,544 | 94,582 | 2,491 | ||||||||||||||||||
Accrued expenses and other liabilities | 73,571 | 189,529 | 804,697 | 329,377 | 54,437 | ||||||||||||||||||
Total liabilities | 436,588 | 6,468,153 | 10,641,468 | 27,965,176 | 87,049 | ||||||||||||||||||
Commitments and contingencies (Note 8) | |||||||||||||||||||||||
Net assets | $ | 87,585,383 | $ | 394,699,819 | $ | 1,330,734,628 | $ | 640,682,428 | $ | 39,680,734 | |||||||||||||
Net Assets consist of: | |||||||||||||||||||||||
Paid-in capital | $ | 143,929,360 | $ | 491,657,637 | $ | 1,678,687,546 | $ | 724,844,622 | $ | 47,200,624 | |||||||||||||
Total distributable losses | (56,343,977 | ) | (96,957,818 | ) | (347,952,918 | ) | (84,162,194 | ) | (7,519,890 | ) | |||||||||||||
Net assets | $ | 87,585,383 | $ | 394,699,819 | $ | 1,330,734,628 | $ | 640,682,428 | $ | 39,680,734 | |||||||||||||
Calculation of Net Asset Value Per Share and Public Offering Price Per Share — Class I | |||||||||||||||||||||||
Net assets | $ | 52,402,585 | $ | 270,668,627 | $ | 1,138,083,457 | $ | 586,634,397 | $ | 37,279,541 | |||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 3,312,843 | 9,707,397 | 38,556,673 | 12,463,187 | 4,175,554 | ||||||||||||||||||
Net asset value per share | $ | 15.82 | $ | 27.88 | $ | 29.52 | $ | 47.07 | $ | 8.93 | |||||||||||||
Calculation of Net Asset Value Per Share — Class A | |||||||||||||||||||||||
Net assets | $ | 33,088,384 | $ | 105,194,272 | $ | 162,769,311 | $ | 44,948,500 | $ | 2,401,193 | |||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 2,082,948 | 3,784,924 | 5,605,414 | 959,001 | 270,110 | ||||||||||||||||||
Net asset value per share | $ | 15.89 | $ | 27.79 | $ | 29.04 | $ | 46.87 | $ | 8.89 | |||||||||||||
Public Offering Price Per Share — Class A | |||||||||||||||||||||||
(Net asset value per share divided by 0.9475) | $ | 16.77 | $ | 29.33 | $ | 30.65 | $ | 49.47 | $ | 9.38 | |||||||||||||
Calculation of Net Asset Value Per Share and Public Offering Price Per Share — Class C | |||||||||||||||||||||||
Net assets | $ | 2,094,414 | $ | 13,473,525 | $ | 25,687,366 | $ | 9,099,531 | |||||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 132,608 | 491,091 | 1,019,297 | 238,671 | |||||||||||||||||||
Net asset value per share | $ | 15.79 | $ | 27.44 | $ | 25.20 | $ | 38.13 | |||||||||||||||
Calculation of Net Asset Value Per Share and Public Offering Price Per Share — Class R | |||||||||||||||||||||||
Net assets | $ | 5,363,395 | $ | 4,194,494 | |||||||||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 190,634 | 144,117 | |||||||||||||||||||||
Net asset value per share | $ | 28.13 | $ | 29.10 | |||||||||||||||||||
*Cost of long-term investments | |||||||||||||||||||||||
Unaffiliated issuers | $ | 117,300,604 | $ | 482,209,185 | $ | 1,530,307,306 | $ | 671,626,835 | $ | 44,136,065 | |||||||||||||
Affiliated issuers | — | — | 127,222,264 | 27,402,493 | — | ||||||||||||||||||
*Cost of collateral for securities on loan | — | — | — | 24,116,823 | — | ||||||||||||||||||
*Cost of short-term investments | 648,394 | 13,049,677 | 5,234,042 | 24,482,087 | 1,108,597 |
The accompanying notes are an integral part of these financial statements.
52
Statements of Assets & Liabilities
DECEMBER 31, 2018 (UNAUDITED)
Global Value Fund | International Value Fund | Value Opportunities Fund | Capital Income Fund | High Yield Fund | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Long-term investments, at value* | |||||||||||||||||||||||
Unaffiliated issuers | $ | 7,604,442 | $ | 2,156,260 | $ | 534,055,992 | $ | 26,970,323 | $ | 2,241,399,609 | |||||||||||||
Affiliated issuers | — | — | 21,581,324 | — | 50,579,660 | ||||||||||||||||||
Collateral for securities on loan* | — | — | 19,733,046 | — | — | ||||||||||||||||||
Short-term investments* | 9,979 | 41,748 | 8,143,564 | 366,661 | 50,351,088 | ||||||||||||||||||
Cash denominated in foreign currencies# | — | 515 | — | — | — | ||||||||||||||||||
Cash collateral for futures | — | — | 283,218 | — | — | ||||||||||||||||||
Cash collateral for options | — | — | 1,825 | — | — | ||||||||||||||||||
Dividends and interest receivable | 27,281 | 9,377 | 1,924,490 | 240,088 | 39,307,614 | ||||||||||||||||||
Receivable for investments sold | — | — | 16,395 | 19,450 | 2,625,750 | ||||||||||||||||||
Receivable for Fund shares sold | 968 | — | 8,354,201 | 5,465 | 9,916,804 | ||||||||||||||||||
Receivable from Advisor | 11,550 | 12,040 | — | 4,452 | — | ||||||||||||||||||
Other assets | 15,880 | 2,167 | 48,030 | 1,458 | 146,104 | ||||||||||||||||||
Total assets | $ | 7,670,100 | $ | 2,222,107 | $ | 594,142,085 | $ | 27,607,897 | $ | 2,394,326,629 | |||||||||||||
Liabilities: | |||||||||||||||||||||||
Collateral upon return of securities on loan | $ | — | $ | — | $ | 19,733,046 | $ | — | $ | — | |||||||||||||
Payable for investments purchased | — | 26,755 | 2,133,856 | 42,880 | 10,061,333 | ||||||||||||||||||
Payable for variation margin | — | — | 26,025 | — | — | ||||||||||||||||||
Payable for Fund shares repurchased | 802 | — | 2,359,129 | 45,909 | 6,975,017 | ||||||||||||||||||
Payable to Advisor | — | — | 379,183 | — | 1,083,667 | ||||||||||||||||||
Payable to Trustees | — | 4 | — | 10 | 1,668 | ||||||||||||||||||
Accrued distribution and service fees | 1,245 | — | 184,954 | 7,551 | 259,235 | ||||||||||||||||||
Distributions payable to shareholders | — | — | — | 16,982 | 2,319,705 | ||||||||||||||||||
Accrued expenses and other liabilities | 52,291 | 49,341 | 218,474 | 63,284 | 638,982 | ||||||||||||||||||
Total liabilities | 54,338 | 76,100 | 25,034,667 | 176,616 | 21,339,607 | ||||||||||||||||||
Commitments and contingencies (Note 8) | |||||||||||||||||||||||
Net assets | $ | 7,615,762 | $ | 2,146,007 | $ | 569,107,418 | $ | 27,431,281 | $ | 2,372,987,022 | |||||||||||||
Net Assets consist of: | |||||||||||||||||||||||
Paid-in capital | $ | 8,742,995 | $ | 2,421,706 | $ | 635,268,186 | $ | 31,763,978 | $ | 2,710,693,505 | |||||||||||||
Total distributable losses | (1,127,233 | ) | (275,699 | ) | (66,160,768 | ) | (4,332,697 | ) | (337,706,483 | ) | |||||||||||||
Net assets | $ | 7,615,762 | $ | 2,146,007 | $ | 569,107,418 | $ | 27,431,281 | $ | 2,372,987,022 | |||||||||||||
Calculation of Net Asset Value Per Share and Public Offering Price Per Share — Class I | |||||||||||||||||||||||
Net assets | $ | 7,367,893 | $ | 2,146,007 | $ | 413,215,005 | $ | 13,909,196 | $ | 1,612,724,943 | |||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 736,399 | 238,540 | 17,484,450 | 1,273,088 | 144,527,515 | ||||||||||||||||||
Net asset value per share | $ | 10.01 | $ | 9.00 | $ | 23.63 | $ | 10.93 | $ | 11.16 | |||||||||||||
Calculation of Net Asset Value Per Share — Class A | |||||||||||||||||||||||
Net assets | $ | 247,869 | $ | 115,083,931 | $ | 13,522,085 | $ | 414,035,077 | |||||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 24,737 | 4,855,766 | 1,186,231 | 37,332,521 | |||||||||||||||||||
Net asset value per share | $ | 10.02 | $ | 23.70 | $ | 11.40 | $ | 11.09 | |||||||||||||||
Public Offering Price Per Share — Class A | |||||||||||||||||||||||
(Net asset value per share divided by 0.9475) | $ | 10.58 | $ | 25.01 | |||||||||||||||||||
(Net asset value per share divided by 0.9525) | $ | 11.97 | |||||||||||||||||||||
(Net asset value per share divided by 0.9625) | $ | 11.52 | |||||||||||||||||||||
Calculation of Net Asset Value Per Share and Public Offering Price Per Share — Class C | |||||||||||||||||||||||
Net assets | $ | 40,808,482 | $ | 3,057,403 | |||||||||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 1,860,113 | 274,132 | |||||||||||||||||||||
Net asset value per share | $ | 21.94 | $ | 11.15 | |||||||||||||||||||
Calculation of Net Asset Value Per Share and Public Offering Price Per Share — Class Z | |||||||||||||||||||||||
Net assets | $ | 343,169,599 | |||||||||||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 30,740,934 | ||||||||||||||||||||||
Net asset value per share | $ | 11.16 | |||||||||||||||||||||
*Cost of long-term investments | |||||||||||||||||||||||
Unaffiliated issuers | $ | 8,737,285 | $ | 2,451,812 | $ | 602,488,925 | $ | 30,351,128 | $ | 2,468,428,851 | |||||||||||||
Affiliated issuers | — | — | 21,329,724 | — | 58,308,306 | ||||||||||||||||||
*Cost of collateral for securities on loan | — | — | 19,733,046 | — | — | ||||||||||||||||||
*Cost of short-term investments | 9,979 | 41,748 | 8,143,504 | 366,660 | 50,351,088 | ||||||||||||||||||
#Cost of cash denominated in foreign currencies | $ | — | $ | 516 | $ | — | $ | — | $ | — |
The accompanying notes are an integral part of these financial statements.
53
Statements of Operations
FOR THE SIX MONTHS ENDED DECEMBER 31, 2018 (UNAUDITED)
Diversified Value Fund | Large Cap Value Fund | Mid-Cap Value Fund | Small Cap Value Fund | Small Cap Diversified Value Fund | |||||||||||||||||||
Investment income: | |||||||||||||||||||||||
Dividends* | |||||||||||||||||||||||
Unaffiliated issuers | $ | 1,262,590 | $ | 5,185,789 | $ | 14,068,956 | $ | 6,053,846 | $ | 335,380 | |||||||||||||
Interest | 2,732 | 56,509 | 234,110 | 203,485 | 9,003 | ||||||||||||||||||
Securities on loan, net | 978 | 5,179 | 125,788 | 236,696 | — | ||||||||||||||||||
Total income | 1,266,300 | 5,247,477 | 14,428,854 | 6,494,027 | 344,383 | ||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Advisory fees | 377,707 | 1,554,154 | 6,709,122 | 3,015,381 | 138,131 | ||||||||||||||||||
Professional fees and expenses | 16,478 | 22,405 | 50,581 | 28,376 | 13,999 | ||||||||||||||||||
Custodian fees and expenses | 5,443 | 8,164 | 34,751 | 18,176 | 10,597 | ||||||||||||||||||
Transfer agent fees and expenses | 62,964 | 316,227 | 1,571,493 | 753,716 | 15,025 | ||||||||||||||||||
Accounting fees and expenses | 9,636 | 27,392 | 102,936 | 48,413 | 28,056 | ||||||||||||||||||
Administration fees and expenses | 22,565 | 72,455 | 278,557 | 128,806 | 23,581 | ||||||||||||||||||
Trustees' fees and expenses | 4,056 | 15,668 | 70,190 | 30,454 | 1,418 | ||||||||||||||||||
Reports to shareholders | 4,648 | 15,885 | 88,487 | 53,952 | 1,278 | ||||||||||||||||||
Registration fees | 29,390 | 61,473 | 51,675 | 40,980 | 23,608 | ||||||||||||||||||
Distribution and service fees — Class A | 49,900 | 159,479 | 272,721 | 80,520 | 4,612 | ||||||||||||||||||
Distribution and service fees — Class C | 12,595 | 70,579 | 181,337 | 62,338 | — | ||||||||||||||||||
Distribution and service fees — Class R | — | 16,467 | 15,300 | — | — | ||||||||||||||||||
Other expenses | 5,430 | 13,094 | 53,423 | 23,849 | 2,594 | ||||||||||||||||||
Total expenses | 600,812 | 2,353,442 | 9,480,573 | 4,284,961 | 262,899 | ||||||||||||||||||
Fee waiver/expense reimbursement by Advisor (Note 2) | (90,181 | ) | (22,378 | ) | — | — | (67,029 | ) | |||||||||||||||
Net expenses | 510,631 | 2,331,064 | 9,480,573 | 4,284,961 | 195,870 | ||||||||||||||||||
Net investment income | 755,669 | 2,916,413 | 4,948,281 | 2,209,066 | 148,513 | ||||||||||||||||||
Realized and Unrealized Gains (Losses): | |||||||||||||||||||||||
Net realized gains (losses) from: | |||||||||||||||||||||||
Sales of unaffiliated issuers | 1,915,048 | 8,115,318 | 42,039,346 | 22,504,672 | (1,039,535 | ) | |||||||||||||||||
Foreign currency transactions | — | — | (29,983 | ) | (3,102 | ) | — | ||||||||||||||||
Net realized gains (losses) | 1,915,048 | 8,115,318 | 42,009,363 | 22,501,570 | (1,039,535 | ) | |||||||||||||||||
Net change in unrealized depreciation of: | |||||||||||||||||||||||
Securities of unaffiliated issuers and foreign currency transactions | (17,735,772 | ) | (72,769,487 | ) | (468,312,526 | ) | (184,801,550 | ) | (7,615,139 | ) | |||||||||||||
Securities of affiliated issuers | — | — | (11,963,098 | ) | (602,016 | ) | — | ||||||||||||||||
Net change in unrealized depreciation | (17,735,772 | ) | (72,769,487 | ) | (480,275,624 | ) | (185,403,566 | ) | (7,615,139 | ) | |||||||||||||
Net losses | (15,820,724 | ) | (64,654,169 | ) | (438,266,261 | ) | (162,901,996 | ) | (8,654,674 | ) | |||||||||||||
Net Decrease in Net Assets Resulting from Operations | $ | (15,065,055 | ) | $ | (61,737,756 | ) | $ | (433,317,980 | ) | $ | (160,692,930 | ) | $ | (8,506,161 | ) | ||||||||
*Net of Foreign Taxes Withheld | $ | 9,041 | $ | 44,255 | $ | 134,594 | $ | 164,475 | $ | 693 |
The accompanying notes are an integral part of these financial statements.
54
Statements of Operations
FOR THE SIX MONTHS ENDED DECEMBER 31, 2018 (UNAUDITED)
Global Value Fund | International Value Fund | Value Opportunities Fund | Capital Income Fund | High Yield Fund | |||||||||||||||||||
Investment income: | |||||||||||||||||||||||
Dividends* | |||||||||||||||||||||||
Unaffiliated issuers | $ | 88,018 | $ | 23,327 | $ | 6,225,501 | $ | 195,032 | $ | 286,831 | |||||||||||||
Affiliated issuers | — | — | 400,500 | — | 267,000 | ||||||||||||||||||
Interest | 595 | 268 | 514,374 | 523,290 | 88,394,588 | ||||||||||||||||||
Securities on loan, net | — | — | 189,779 | — | — | ||||||||||||||||||
Total income | 88,613 | 23,595 | 7,330,154 | 718,322 | 88,948,419 | ||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Advisory fees | 35,760 | 9,971 | 2,537,487 | 113,674 | 7,499,218 | ||||||||||||||||||
Professional fees and expenses | 13,123 | 11,808 | 24,528 | 13,577 | 62,333 | ||||||||||||||||||
Custodian fees and expenses | 7,533 | 10,128 | 23,537 | 9,415 | 15,841 | ||||||||||||||||||
Transfer agent fees and expenses | 16,623 | 7,687 | 400,468 | 23,715 | 1,362,693 | ||||||||||||||||||
Accounting fees and expenses | 21,117 | 22,870 | 42,337 | 32,883 | 169,519 | ||||||||||||||||||
Administration fees and expenses | 21,825 | 21,963 | 109,554 | 21,518 | 421,637 | ||||||||||||||||||
Trustees' fees and expenses | 355 | 97 | 24,569 | 1,379 | 101,380 | ||||||||||||||||||
Reports to shareholders | 864 | 750 | 19,521 | 2,011 | 84,266 | ||||||||||||||||||
Registration fees | 20,962 | 3,514 | 33,970 | 26,500 | 89,117 | ||||||||||||||||||
Distribution and service fees — Class A | 661 | — | 169,956 | 19,893 | 585,795 | ||||||||||||||||||
Distribution and service fees — Class C | — | — | 245,468 | — | 16,532 | ||||||||||||||||||
Other expenses | 2,053 | 1,579 | 18,263 | 2,856 | 75,476 | ||||||||||||||||||
Total expenses | 140,876 | 90,367 | 3,649,658 | 267,421 | 10,483,807 | ||||||||||||||||||
Fee waiver/expense reimbursement by Advisor (Note 2) | (93,540 | ) | (77,947 | ) | — | (107,621 | ) | (515,091 | ) | ||||||||||||||
Net expenses | 47,336 | 12,420 | 3,649,658 | 159,800 | 9,968,716 | ||||||||||||||||||
Net investment income | 41,277 | 11,175 | 3,680,496 | 558,522 | 78,979,703 | ||||||||||||||||||
Realized and Unrealized Gains (Losses): | |||||||||||||||||||||||
Net realized gains (losses) from: | |||||||||||||||||||||||
Sales of unaffiliated issuers | 286,872 | 52,394 | 9,808,307 | 178,458 | 7,955,179 | ||||||||||||||||||
Sales of affiliated issuers | — | — | 4,794,001 | — | 3,196,001 | ||||||||||||||||||
Foreign currency transactions | (1,216 | ) | (818 | ) | (36,131 | ) | (432 | ) | — | ||||||||||||||
Credit default swap contracts | — | — | — | 4,502 | 747,303 | ||||||||||||||||||
Futures contracts | — | — | 771,226 | — | — | ||||||||||||||||||
Net realized gains | 285,656 | 51,576 | 15,337,403 | 182,528 | 11,898,483 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) of: | |||||||||||||||||||||||
Securities of unaffiliated issuers and foreign currency transactions | (1,964,573 | ) | (477,670 | ) | (111,333,280 | ) | (5,213,266 | ) | (181,696,089 | ) | |||||||||||||
Securities of affiliated issuers | — | — | (2,585,900 | ) | — | 3,034,555 | |||||||||||||||||
Futures contracts | — | — | (224,389 | ) | — | — | |||||||||||||||||
Net change in unrealized depreciation | (1,964,573 | ) | (477,670 | ) | (114,143,569 | ) | (5,213,266 | ) | (178,661,534 | ) | |||||||||||||
Net losses | (1,678,917 | ) | (426,094 | ) | (98,806,166 | ) | (5,030,738 | ) | (166,763,051 | ) | |||||||||||||
Net Decrease in Net Assets Resulting from Operations | $ | (1,637,640 | ) | $ | (414,919 | ) | $ | (95,125,670 | ) | $ | (4,472,216 | ) | $ | (87,783,348 | ) | ||||||||
*Net of Foreign Taxes Withheld | $ | 2,665 | $ | 1,434 | $ | 72,436 | $ | 4,949 | $ | — |
The accompanying notes are an integral part of these financial statements.
55
Statements of Changes in Net Assets
Diversified Value Fund | Large Cap Value Fund | ||||||||||||||||||
Six months ended December 31, 2018 (unaudited) | Year ended June 30, 2018 | Six months ended December 31, 2018 (unaudited) | Year ended June 30, 2018 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 755,669 | $ | 1,279,818 | $ | 2,916,413 | $ | 4,629,731 | |||||||||||
Net realized gains (losses) | 1,915,048 | (1,069,076 | ) | 8,115,318 | 29,840,083 | ||||||||||||||
Net change in unrealized appreciation (depreciation) | (17,735,772 | ) | 10,500,294 | (72,769,487 | ) | 2,301,915 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | (15,065,055 | ) | 10,711,036 | (61,737,756 | ) | 36,771,729 | |||||||||||||
Dividends and Distributions to Shareholders: | |||||||||||||||||||
Class I | (841,971 | ) | (1,291,066 | ) | (8,588,072 | ) | (3,696,306 | ) | |||||||||||
Class A | (432,249 | ) | (657,010 | ) | (3,158,756 | ) | (1,968,759 | ) | |||||||||||
Class C | (6,014 | ) | (23,932 | ) | (247,825 | ) | (84,374 | ) | |||||||||||
Class R | — | — | (118,525 | ) | (98,106 | ) | |||||||||||||
Net decrease in net assets resulting from dividends and distributions to shareholders | (1,280,234 | ) | (1,972,008 | )* | (12,113,178 | ) | (5,847,545 | )* | |||||||||||
Capital Share Transactions: | |||||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (3,785,885 | ) | (13,183,311 | ) | 39,296,491 | (37,501,866 | ) | ||||||||||||
Net Assets: | |||||||||||||||||||
Total decrease in net assets | (20,131,174 | ) | (4,444,283 | ) | (34,554,443 | ) | (6,577,682 | ) | |||||||||||
Beginning of period | 107,716,557 | 112,160,840 | 429,254,262 | 435,831,944 | |||||||||||||||
End of period | $ | 87,585,383 | $ | 107,716,557 | ** | $ | 394,699,819 | $ | 429,254,262 | ** |
* For the year ended June 30, 2018, all dividends and distributions to shareholders were from net investment income (Note 10).
** As of June 30, 2018, undistributed net investment income was $1,280,233 for the Diversified Value Fund and $4,631,157 for the Large Cap Value Fund (Note 10).
The accompanying notes are an integral part of these financial statements.
56
Statements of Changes in Net Assets
Mid-Cap Value Fund | Small Cap Value Fund | ||||||||||||||||||
Six months ended December 31, 2018 (unaudited) | Year ended June 30, 2018 | Six months ended December 31, 2018 (unaudited) | Year ended June 30, 2018 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 4,948,281 | $ | 4,420,098 | $ | 2,209,066 | $ | 3,329,563 | |||||||||||
Net realized gains (losses) | 42,009,363 | (4,192,194 | ) | 22,501,570 | 61,963,477 | ||||||||||||||
Net change in unrealized appreciation (depreciation) | (480,275,624 | ) | 251,979,942 | (185,403,566 | ) | 32,723,273 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | (433,317,980 | ) | 252,207,846 | (160,692,930 | ) | 98,016,313 | |||||||||||||
Dividends and Distributions to Shareholders: | |||||||||||||||||||
Class I | (34,995,716 | ) | (102,893,236 | ) | (53,561,823 | ) | (33,857,921 | ) | |||||||||||
Class A | (4,637,879 | ) | (16,161,033 | ) | (4,070,454 | ) | (3,674,079 | ) | |||||||||||
Class C | (685,095 | ) | (3,159,514 | ) | (973,465 | ) | (811,924 | ) | |||||||||||
Class R | (106,553 | ) | (650,880 | ) | — | — | |||||||||||||
Net decrease in net assets resulting from dividends and distributions to shareholders | (40,425,243 | ) | (122,864,663 | )* | (58,605,742 | ) | (38,343,924 | )* | |||||||||||
Capital Share Transactions: | |||||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (80,667,911 | ) | (256,537,398 | ) | 60,035,048 | (36,415,088 | ) | ||||||||||||
Net Assets: | |||||||||||||||||||
Total increase (decrease) in net assets | (554,411,134 | ) | (127,194,215 | ) | (159,263,624 | ) | 23,257,301 | ||||||||||||
Beginning of period | 1,885,145,762 | 2,012,339,977 | 799,946,052 | 776,688,751 | |||||||||||||||
End of period | $ | 1,330,734,628 | $ | 1,885,145,762 | ** | $ | 640,682,428 | $ | 799,946,052 | ** |
* For the year ended June 30, 2018, dividends and distributions to shareholders from net investment income were $6,191,906 for Class I, $410,149 for Class A and $3,532 for Class R and from net realized gains were $96,701,330 for Class I, $15,750,884 for Class A, $3,159,514 for Class C and $647,348 for Class R for the Mid-Cap Value Fund. For the year ended June 30, 2018, dividends and distributions to shareholders from net investment income were $3,110,570 for Class I and $130,714 for Class A and from net realized gains were $30,747,351 for Class I, $3,543,365 for Class A and $811,924 for Class C for the Small Cap Value Fund (Note 10).
** As of June 30, 2018, undistributed net investment income (loss) was $(322,010) for the Mid-Cap Value Fund and $2,099,354 for the Small Cap Value Fund (Note 10).
The accompanying notes are an integral part of these financial statements.
57
Statements of Changes in Net Assets
Small Cap Diversified Value Fund | Global Value Fund | ||||||||||||||||||
Six months ended December 31, 2018 (unaudited) | Year ended June 30, 2018 | Six months ended December 31, 2018 (unaudited) | Year ended June 30, 2018 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 148,513 | $ | 201,673 | $ | 41,277 | $ | 71,964 | |||||||||||
Net realized gains (losses) | (1,039,535 | ) | 4,735,646 | 285,656 | 644,429 | ||||||||||||||
Net change in unrealized appreciation (depreciation) | (7,615,139 | ) | (1,021,186 | ) | (1,964,573 | ) | 61,872 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | (8,506,161 | ) | 3,916,133 | (1,637,640 | ) | 778,265 | |||||||||||||
Dividends and Distributions to Shareholders: | |||||||||||||||||||
Class I | (2,939,252 | ) | (3,404,099 | ) | (703,103 | ) | (432,679 | ) | |||||||||||
Class A | (241,524 | ) | (181,599 | ) | (22,566 | ) | (25,070 | ) | |||||||||||
Net decrease in net assets resulting from dividends and distributions to shareholders | (3,180,776 | ) | (3,585,698 | )* | (725,669 | ) | (457,749 | )* | |||||||||||
Capital Share Transactions: | |||||||||||||||||||
Net increase in net assets resulting from capital share transactions | 8,404,962 | 22,646,240 | 260,594 | 1,268,577 | |||||||||||||||
Net Assets: | |||||||||||||||||||
Total increase (decrease) in net assets | (3,281,975 | ) | 22,976,675 | (2,102,715 | ) | 1,589,093 | |||||||||||||
Beginning of period | 42,962,709 | 19,986,034 | 9,718,477 | 8,129,384 | |||||||||||||||
End of period | $ | 39,680,734 | $ | 42,962,709 | ** | $ | 7,615,762 | $ | 9,718,477 | ** |
* For the year ended June 30, 2018, dividends and distributions to shareholders from net investment income were $97,468 for Class I and $3,154 for Class A and from net realized gains were $3,306,631 for Class I and $178,445 for Class A for the Small Cap Diversified Value Fund. For the year ended June 30, 2018, dividends and distributions to shareholders from net investment income were $80,053 for Class I and $3,738 for Class A and from net realized gains were $352,626 for Class I and $21,332 for Class A for the Global Value Fund (Note 10).
** As of June 30, 2018, undistributed net investment income was $127,246 for the Small Cap Diversified Value Fund and $50,116 for the Global Value Fund (Note 10).
The accompanying notes are an integral part of these financial statements.
58
Statements of Changes in Net Assets
International Value Fund | Value Opportunities Fund | ||||||||||||||||||
Six months ended December 31, 2018 (unaudited) | Year ended June 30, 2018 | Six months ended December 31, 2018 (unaudited) | Year ended June 30, 2018 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 11,175 | $ | 23,157 | $ | 3,680,496 | $ | 7,067,953 | |||||||||||
Net realized gains | 51,576 | 154,127 | 15,337,403 | 60,923,665 | |||||||||||||||
Net change in unrealized depreciation | (477,670 | ) | (93,077 | ) | (114,143,569 | ) | (273,708 | ) | |||||||||||
Net increase (decrease) in net assets resulting from operations | (414,919 | ) | 84,207 | (95,125,670 | ) | 67,717,910 | |||||||||||||
Dividends and Distributions to Shareholders: | |||||||||||||||||||
Class I | (158,651 | ) | (144,568 | ) | (44,528,454 | ) | (12,900,639 | ) | |||||||||||
Class A | — | — | (10,845,972 | ) | (3,796,645 | ) | |||||||||||||
Class C | — | — | (4,078,762 | ) | (1,253,568 | ) | |||||||||||||
Net decrease in net assets resulting from dividends and distributions to shareholders | (158,651 | ) | (144,568 | )* | (59,453,188 | ) | (17,950,852 | )* | |||||||||||
Capital Share Transactions: | |||||||||||||||||||
Net increase in net assets resulting from capital share transactions | 177,026 | 180,942 | 84,554,225 | 46,962,687 | |||||||||||||||
Net Assets: | |||||||||||||||||||
Total increase (decrease) in net assets | (396,544 | ) | 120,581 | (70,024,633 | ) | 96,729,745 | |||||||||||||
Beginning of period | 2,542,551 | 2,421,970 | 639,132,051 | 542,402,306 | |||||||||||||||
End of period | $ | 2,146,007 | $ | 2,542,551 | ** | $ | 569,107,418 | $ | 639,132,051 | ** |
* For the year ended June 30, 2018, dividends and distributions to shareholders from net investment income were $26,262 for Class I and from net realized gains were $118,306 for Class I for the International Value Fund. For the year ended June 30, 2018, dividends and distributions to shareholders from net investment income were $7,243,094 for Class I, $1,982,727 for Class A and $451,278 for Class C and from net realized gains were $5,657,545 for Class I, $1,813,918 for Class A and $802,290 for Class C for the Value Opportunities Fund (Note 10).
** As of June 30, 2018, undistributed net investment income was $16,649 for the International Value Fund and $1,949,167 for the Value Opportunities Fund (Note 10).
The accompanying notes are an integral part of these financial statements.
59
Statements of Changes in Net Assets
Capital Income Fund | High Yield Fund | ||||||||||||||||||
Six months ended December 31, 2018 (unaudited) | Year ended June 30, 2018 | Six months ended December 31, 2018 (unaudited) | Year ended June 30, 2018 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 558,522 | $ | 1,336,013 | $ | 78,979,703 | $ | 161,067,983 | |||||||||||
Net realized gains (losses) | 182,528 | 2,044,789 | 11,898,483 | (12,551,785 | ) | ||||||||||||||
Net change in unrealized depreciation | (5,213,266 | ) | (963,062 | ) | (178,661,534 | ) | (74,138,295 | ) | |||||||||||
Net increase (decrease) in net assets resulting from operations | (4,472,216 | ) | 2,417,740 | (87,783,348 | ) | 74,377,903 | |||||||||||||
Dividends and Distributions to Shareholders: | |||||||||||||||||||
Class I | (327,527 | ) | (790,343 | ) | (55,906,506 | ) | (127,191,770 | ) | |||||||||||
Class A | (243,984 | ) | (660,571 | ) | (13,237,206 | ) | (28,374,568 | ) | |||||||||||
Class C | — | — | (81,059 | ) | (163,724 | ) | |||||||||||||
Class Z | — | — | (10,707,155 | ) | (1,893,234 | ) | |||||||||||||
Net decrease in net assets resulting from dividends and distributions to shareholders | (571,511 | ) | (1,450,914 | )* | (79,931,926 | ) | (157,623,296 | )* | |||||||||||
Capital Share Transactions: | |||||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (4,340,196 | ) | (5,903,933 | ) | (176,726,499 | ) | 139,753,443 | ||||||||||||
Net Assets: | |||||||||||||||||||
Total increase (decrease) in net assets | (9,383,923 | ) | (4,937,107 | ) | (344,441,773 | ) | 56,508,050 | ||||||||||||
Beginning of period | 36,815,204 | 41,752,311 | 2,717,428,795 | 2,660,920,745 | |||||||||||||||
End of period | $ | 27,431,281 | $ | 36,815,204 | ** | $ | 2,372,987,022 | $ | 2,717,428,795 | ** |
* For the year ended June 30, 2018, all dividends and distributions to shareholders were from net investment income (Note 10).
** As of June 30, 2018, undistributed net investment income (loss) was $(4,358) for the Capital Income Fund and $92,301 for the High Yield Fund (Note 10).
The accompanying notes are an integral part of these financial statements.
60
Financial Highlights
The following per share data and ratios have been derived from information provided in the financial statements.
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Diversified Value Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 18.80 | $ | 0.15 | $ | (2.87 | ) | $ | (2.72 | ) | $ | (0.26 | ) | $ | — | $ | (0.26 | ) | |||||||||||||
Year ended 6/30/2018 | 17.43 | 0.23 | 1.48 | 1.71 | (0.34 | ) | — | (0.34 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 14.31 | 0.19 | 3.77 | 3.96 | (0.84 | ) | — | (0.84 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 15.89 | 0.22 | (1.59 | ) | (1.37 | ) | (0.21 | ) | — | (0.21 | ) | ||||||||||||||||||||
Year ended 6/30/2015 | 15.47 | 0.19 | 0.61 | 0.80 | (0.38 | ) | — | (0.38 | ) | ||||||||||||||||||||||
Year ended 6/30/2014 | 12.53 | 0.38 | 2.73 | 3.11 | (0.17 | ) | — | (0.17 | ) | ||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 18.85 | 0.12 | (2.87 | ) | (2.75 | ) | (0.21 | ) | — | (0.21 | ) | ||||||||||||||||||||
Year ended 6/30/2018 | 17.47 | 0.19 | 1.49 | 1.68 | (0.30 | ) | — | (0.30 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 14.36 | 0.16 | 3.77 | 3.93 | (0.82 | ) | — | (0.82 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 15.92 | 0.18 | (1.59 | ) | (1.41 | ) | (0.15 | ) | — | (0.15 | ) | ||||||||||||||||||||
Year ended 6/30/2015 | 15.50 | 0.14 | 0.63 | 0.77 | (0.35 | ) | — | (0.35 | ) | ||||||||||||||||||||||
Year ended 6/30/2014 | 12.57 | 0.38 | 2.70 | 3.08 | (0.15 | ) | — | (0.15 | ) | ||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 18.64 | 0.05 | (2.85 | ) | (2.80 | ) | (0.05 | ) | — | (0.05 | ) | ||||||||||||||||||||
Year ended 6/30/2018 | 17.27 | 0.04 | 1.48 | 1.52 | (0.15 | ) | — | (0.15 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 14.23 | 0.04 | 3.73 | 3.77 | (0.73 | ) | — | (0.73 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 15.76 | 0.07 | (1.57 | ) | (1.50 | ) | (0.03 | ) | — | (0.03 | ) | ||||||||||||||||||||
Year ended 6/30/2015 | 15.20 | 0.03 | 0.62 | 0.65 | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||||||||
Year ended 6/30/2014 | 12.35 | 0.17 | 2.75 | 2.92 | (0.07 | ) | — | (0.07 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Diversified Value Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 15.82 | –14.56 | % | $ | 52,403 | 0.85 | %3 | 1.02 | %3 | 1.55 | %3 | |||||||||||||||
Year ended 6/30/2018 | 18.80 | 9.81 | 65,503 | 0.95 | 1.02 | 1.25 | |||||||||||||||||||||
Year ended 6/30/2017 | 17.43 | 28.05 | 68,260 | 0.95 | 1.09 | 1.21 | |||||||||||||||||||||
Year ended 6/30/2016 | 14.31 | –8.59 | 342,046 | 0.95 | 1.03 | 1.52 | |||||||||||||||||||||
Year ended 6/30/2015 | 15.89 | 5.30 | 481,815 | 0.95 | 0.99 | 1.18 | |||||||||||||||||||||
Year ended 6/30/2014 | 15.47 | 24.98 | 485,541 | 0.95 | 1.01 | 2.72 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 15.89 | –14.66 | 33,088 | 1.103 | 1.273 | 1.303 | |||||||||||||||||||||
Year ended 6/30/2018 | 18.85 | 9.57 | 39,616 | 1.20 | 1.27 | 1.00 | |||||||||||||||||||||
Year ended 6/30/2017 | 17.47 | 27.71 | 41,084 | 1.20 | 1.34 | 1.00 | |||||||||||||||||||||
Year ended 6/30/2016 | 14.36 | –8.83 | 38,527 | 1.20 | 1.28 | 1.25 | |||||||||||||||||||||
Year ended 6/30/2015 | 15.92 | 5.07 | 52,752 | 1.20 | 1.24 | 0.92 | |||||||||||||||||||||
Year ended 6/30/2014 | 15.50 | 24.68 | 59,173 | 1.20 | 1.26 | 2.71 | |||||||||||||||||||||
Class C | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 15.79 | –15.05 | 2,094 | 1.853 | 2.023 | 0.553 | |||||||||||||||||||||
Year ended 6/30/2018 | 18.64 | 8.77 | 2,598 | 1.95 | 2.02 | 0.25 | |||||||||||||||||||||
Year ended 6/30/2017 | 17.27 | 26.78 | 2,817 | 1.95 | 2.09 | 0.23 | |||||||||||||||||||||
Year ended 6/30/2016 | 14.23 | –9.51 | 3,334 | 1.95 | 2.03 | 0.51 | |||||||||||||||||||||
Year ended 6/30/2015 | 15.76 | 4.27 | 4,419 | 1.95 | 1.99 | 0.17 | |||||||||||||||||||||
Year ended 6/30/2014 | 15.20 | 23.70 | 4,429 | 1.95 | 2.01 | 1.28 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2018* | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Portfolio turnover rate | 15 | % | 28 | % | 25 | % | 35 | % | 38 | % | 33 | % |
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Large Cap Value Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 33.57 | $ | 0.25 | $ | (4.96 | ) | $ | (4.71 | ) | $ | (0.64 | ) | $ | (0.34 | ) | $ | (0.98 | ) | ||||||||||||
Year ended 6/30/2018 | 31.04 | 0.42 | 2.67 | 3.09 | (0.56 | ) | — | (0.56 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 25.06 | 0.39 | 6.15 | 6.54 | (0.56 | ) | — | (0.56 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 27.21 | 0.39 | (2.15 | ) | (1.76 | ) | (0.39 | ) | — | (0.39 | ) | ||||||||||||||||||||
Year ended 6/30/2015 | 26.65 | 0.35 | 0.99 | 1.34 | (0.78 | ) | — | (0.78 | ) | ||||||||||||||||||||||
Year ended 6/30/2014 | 21.35 | 0.73 | 4.88 | 5.61 | (0.31 | ) | — | (0.31 | ) | ||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 33.36 | 0.20 | (4.92 | ) | (4.72 | ) | (0.51 | ) | (0.34 | ) | (0.85 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 30.85 | 0.34 | 2.65 | 2.99 | (0.48 | ) | — | (0.48 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 24.91 | 0.32 | 6.10 | 6.42 | (0.48 | ) | — | (0.48 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 27.02 | 0.33 | (2.13 | ) | (1.80 | ) | (0.31 | ) | — | (0.31 | ) | ||||||||||||||||||||
Year ended 6/30/2015 | 26.46 | 0.27 | 0.99 | 1.26 | (0.70 | ) | — | (0.70 | ) | ||||||||||||||||||||||
Year ended 6/30/2014 | 21.21 | 0.73 | 4.79 | 5.52 | (0.27 | ) | — | (0.27 | ) | ||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 32.68 | 0.08 | (4.81 | ) | (4.73 | ) | (0.17 | ) | (0.34 | ) | (0.51 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 30.16 | 0.08 | 2.61 | 2.69 | (0.17 | ) | — | (0.17 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 24.29 | 0.10 | 5.94 | 6.04 | (0.17 | ) | — | (0.17 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 26.30 | 0.13 | (2.06 | ) | (1.93 | ) | (0.08 | ) | — | (0.08 | ) | ||||||||||||||||||||
Year ended 6/30/2015 | 25.96 | 0.09 | 0.94 | 1.03 | (0.69 | ) | — | (0.69 | ) | ||||||||||||||||||||||
Year ended 6/30/2014 | 20.72 | 0.72 | 4.52 | 5.24 | — | — | — | ||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 33.56 | 0.16 | (4.96 | ) | (4.80 | ) | (0.29 | ) | (0.34 | ) | (0.63 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 30.96 | 0.22 | 2.70 | 2.92 | (0.32 | ) | — | (0.32 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 25.02 | 0.25 | 6.13 | 6.38 | (0.44 | ) | — | (0.44 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 27.16 | 0.28 | (2.16 | ) | (1.88 | ) | (0.26 | ) | — | (0.26 | ) | ||||||||||||||||||||
Year ended 6/30/2015 | 26.62 | 0.22 | 0.98 | 1.20 | (0.66 | ) | — | (0.66 | ) | ||||||||||||||||||||||
Year ended 6/30/2014 | 21.33 | 0.60 | 4.89 | 5.49 | (0.20 | ) | — | (0.20 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Large Cap Value Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 27.88 | –14.15 | % | $ | 270,669 | 0.96 | %3 | 0.97 | %3 | 1.46 | %3 | |||||||||||||||
Year ended 6/30/2018 | 33.57 | 10.01 | 276,930 | 1.00 | 1.00 | 1.28 | |||||||||||||||||||||
Year ended 6/30/2017 | 31.04 | 26.22 | 269,714 | 0.99 | 0.99 | 1.38 | |||||||||||||||||||||
Year ended 6/30/2016 | 25.06 | –6.42 | 305,282 | 1.01 | 1.01 | 1.55 | |||||||||||||||||||||
Year ended 6/30/2015 | 27.21 | 5.17 | 479,488 | 0.99 | 0.99 | 1.30 | |||||||||||||||||||||
Year ended 6/30/2014 | 26.65 | 26.52 | 500,102 | 1.01 | 1.01 | 3.04 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 27.79 | –14.26 | 105,194 | 1.213 | 1.223 | 1.193 | |||||||||||||||||||||
Year ended 6/30/2018 | 33.36 | 9.72 | 131,276 | 1.25 | 1.25 | 1.03 | |||||||||||||||||||||
Year ended 6/30/2017 | 30.85 | 25.88 | 135,349 | 1.24 | 1.24 | 1.13 | |||||||||||||||||||||
Year ended 6/30/2016 | 24.91 | –6.62 | 142,768 | 1.26 | 1.26 | 1.33 | |||||||||||||||||||||
Year ended 6/30/2015 | 27.02 | 4.89 | 191,665 | 1.24 | 1.24 | 1.03 | |||||||||||||||||||||
Year ended 6/30/2014 | 26.46 | 26.22 | 223,219 | 1.26 | 1.26 | 3.02 | |||||||||||||||||||||
Class C | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 27.44 | –14.58 | 13,474 | 1.963 | 1.973 | 0.483 | |||||||||||||||||||||
Year ended 6/30/2018 | 32.68 | 8.92 | 14,161 | 2.00 | 2.00 | 0.26 | |||||||||||||||||||||
Year ended 6/30/2017 | 30.16 | 24.92 | 17,250 | 1.99 | 1.99 | 0.38 | |||||||||||||||||||||
Year ended 6/30/2016 | 24.29 | –7.34 | 21,038 | 2.01 | 2.01 | 0.53 | |||||||||||||||||||||
Year ended 6/30/2015 | 26.30 | 4.10 | 40,862 | 1.99 | 1.99 | 0.34 | |||||||||||||||||||||
Year ended 6/30/2014 | 25.96 | 25.29 | 25,765 | 2.01 | 2.01 | 3.02 | |||||||||||||||||||||
Class R | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 28.13 | –14.37 | 5,363 | 1.463 | 1.473 | 0.933 | |||||||||||||||||||||
Year ended 6/30/2018 | 33.56 | 9.47 | 6,888 | 1.50 | 1.50 | 0.66 | |||||||||||||||||||||
Year ended 6/30/2017 | 30.96 | 25.58 | 13,519 | 1.49 | 1.49 | 0.88 | |||||||||||||||||||||
Year ended 6/30/2016 | 25.02 | –6.88 | 13,186 | 1.51 | 1.51 | 1.12 | |||||||||||||||||||||
Year ended 6/30/2015 | 27.16 | 4.64 | 12,867 | 1.49 | 1.49 | 0.81 | |||||||||||||||||||||
Year ended 6/30/2014 | 26.62 | 25.91 | 11,924 | 1.51 | 1.51 | 2.51 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2018* | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Portfolio turnover rate | 15 | % | 41 | % | 27 | % | 39 | % | 39 | % | 57 | % |
1 Net investment income per share has been calculated based on average shares outstanding during the period.
2 Total returns exclude the effects of sales charges. The Fund's investment advisor may have waived a portion of its advisory fee and/or reimbursed a portion of the Fund's expenses. Without such waiver and/or reimbursement, the Fund's performance would have been lower. Returns for periods less than one year are not annualized.
3 Annualized.
* Unaudited
The accompanying notes are an integral part of these financial statements.
61
Financial Highlights
The following per share data and ratios have been derived from information provided in the financial statements.
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Mid-Cap Value Fund | Net asset value, beginning of period | Net investment income (loss)1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 39.68 | $ | 0.12 | $ | (9.40 | ) | $ | (9.28 | ) | $ | (0.33 | ) | $ | (0.55 | ) | $ | (0.88 | ) | ||||||||||||
Year ended 6/30/2018 | 37.13 | 0.11 | 4.96 | 5.07 | (0.15 | ) | (2.37 | ) | (2.52 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 30.55 | 0.10 | 7.05 | 7.15 | (0.11 | ) | (0.46 | ) | (0.57 | ) | |||||||||||||||||||||
Year ended 6/30/2016 | 40.43 | 0.25 | (5.54 | ) | (5.29 | ) | (0.16 | ) | (4.43 | ) | (4.59 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 45.15 | 0.15 | (0.63 | ) | (0.48 | ) | (0.27 | ) | (3.97 | ) | (4.24 | ) | |||||||||||||||||||
Year ended 6/30/2014 | 35.36 | 0.21 | 9.71 | 9.92 | (0.13 | ) | — | (0.13 | ) | ||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 39.03 | 0.07 | (9.23 | ) | (9.16 | ) | (0.28 | ) | (0.55 | ) | (0.83 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 36.57 | 0.01 | 4.88 | 4.89 | (0.06 | ) | (2.37 | ) | (2.43 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 30.13 | 0.01 | 6.96 | 6.97 | (0.07 | ) | (0.46 | ) | (0.53 | ) | |||||||||||||||||||||
Year ended 6/30/2016 | 39.91 | 0.16 | (5.47 | ) | (5.31 | ) | (0.04 | ) | (4.43 | ) | (4.47 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 44.60 | 0.04 | (0.61 | ) | (0.57 | ) | (0.15 | ) | (3.97 | ) | (4.12 | ) | |||||||||||||||||||
Year ended 6/30/2014 | 34.98 | 0.12 | 9.58 | 9.70 | (0.08 | ) | — | (0.08 | ) | ||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 33.93 | (0.07 | ) | (8.00 | ) | (8.07 | ) | (0.11 | ) | (0.55 | ) | (0.66 | ) | ||||||||||||||||||
Year ended 6/30/2018 | 32.26 | (0.24 | ) | 4.28 | 4.04 | — | (2.37 | ) | (2.37 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 26.78 | (0.23 | ) | 6.17 | 5.94 | — | (0.46 | ) | (0.46 | ) | |||||||||||||||||||||
Year ended 6/30/2016 | 36.24 | (0.08 | ) | (4.95 | ) | (5.03 | ) | — | (4.43 | ) | (4.43 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 41.04 | (0.25 | ) | (0.58 | ) | (0.83 | ) | — | (3.97 | ) | (3.97 | ) | |||||||||||||||||||
Year ended 6/30/2014 | 32.39 | (0.16 | ) | 8.85 | 8.69 | (0.04 | ) | — | (0.04 | ) | |||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 39.02 | 0.02 | (9.23 | ) | (9.21 | ) | (0.16 | ) | (0.55 | ) | (0.71 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 36.60 | (0.08 | ) | 4.88 | 4.80 | (0.01 | ) | (2.37 | ) | (2.38 | ) | ||||||||||||||||||||
Year ended 6/30/2017 | 30.21 | (0.08 | ) | 6.96 | 6.88 | (0.03 | ) | (0.46 | ) | (0.49 | ) | ||||||||||||||||||||
Year ended 6/30/2016 | 40.04 | 0.09 | (5.49 | ) | (5.40 | ) | — | (4.43 | ) | (4.43 | ) | ||||||||||||||||||||
Year ended 6/30/2015 | 44.77 | (0.07 | ) | (0.62 | ) | (0.69 | ) | (0.07 | ) | (3.97 | ) | (4.04 | ) | ||||||||||||||||||
Year ended 6/30/2014 | 35.17 | 0.02 | 9.63 | 9.65 | (0.05 | ) | — | (0.05 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Mid-Cap Value Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income (loss) | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 29.52 | –23.56 | % | $ | 1,138,083 | 1.01 | %3 | 1.01 | %3 | 0.61 | %3 | |||||||||||||||
Year ended 6/30/2018 | 39.68 | 14.32 | 1,609,002 | 0.99 | 0.99 | 0.28 | |||||||||||||||||||||
Year ended 6/30/2017 | 37.13 | 23.37 | 1,675,920 | 1.03 | 1.03 | 0.28 | |||||||||||||||||||||
Year ended 6/30/2016 | 30.55 | –13.23 | 1,659,480 | 1.02 | 1.02 | 0.75 | |||||||||||||||||||||
Year ended 6/30/2015 | 40.43 | –0.70 | 2,492,532 | 1.00 | 1.00 | 0.35 | |||||||||||||||||||||
Year ended 6/30/2014 | 45.15 | 28.10 | 2,542,569 | 1.01 | 1.01 | 0.52 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 29.04 | –23.66 | 162,769 | 1.263 | 1.263 | 0.353 | |||||||||||||||||||||
Year ended 6/30/2018 | 39.03 | 14.05 | 230,105 | 1.24 | 1.24 | 0.03 | |||||||||||||||||||||
Year ended 6/30/2017 | 36.57 | 23.05 | 274,787 | 1.28 | 1.28 | 0.02 | |||||||||||||||||||||
Year ended 6/30/2016 | 30.13 | –13.45 | 322,023 | 1.27 | 1.27 | 0.48 | |||||||||||||||||||||
Year ended 6/30/2015 | 39.91 | –0.93 | 626,544 | 1.25 | 1.25 | 0.10 | |||||||||||||||||||||
Year ended 6/30/2014 | 44.60 | 27.78 | 862,559 | 1.26 | 1.26 | 0.29 | |||||||||||||||||||||
Class C | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 25.20 | –23.96 | 25,687 | 2.013 | 2.013 | (0.40 | )3 | ||||||||||||||||||||
Year ended 6/30/2018 | 33.93 | 13.20 | 39,383 | 1.99 | 1.99 | (0.72 | ) | ||||||||||||||||||||
Year ended 6/30/2017 | 32.26 | 22.13 | 50,612 | 2.03 | 2.03 | (0.74 | ) | ||||||||||||||||||||
Year ended 6/30/2016 | 26.78 | –14.09 | 64,568 | 2.02 | 2.02 | (0.27 | ) | ||||||||||||||||||||
Year ended 6/30/2015 | 36.24 | –1.69 | 128,647 | 2.00 | 2.00 | (0.65 | ) | ||||||||||||||||||||
Year ended 6/30/2014 | 41.04 | 26.84 | 154,222 | 2.01 | 2.01 | (0.45 | ) | ||||||||||||||||||||
Class R | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 29.10 | –23.74 | 4,194 | 1.513 | 1.513 | 0.093 | |||||||||||||||||||||
Year ended 6/30/2018 | 39.02 | 13.74 | 6,656 | 1.49 | 1.49 | (0.22 | ) | ||||||||||||||||||||
Year ended 6/30/2017 | 36.60 | 22.74 | 11,020 | 1.53 | 1.53 | (0.23 | ) | ||||||||||||||||||||
Year ended 6/30/2016 | 30.21 | –13.64 | 11,471 | 1.52 | 1.52 | 0.26 | |||||||||||||||||||||
Year ended 6/30/2015 | 40.04 | –1.21 | 18,683 | 1.50 | 1.50 | (0.16 | ) | ||||||||||||||||||||
Year ended 6/30/2014 | 44.77 | 27.47 | 24,693 | 1.51 | 1.51 | 0.05 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2018* | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Portfolio turnover rate | 22 | % | 32 | % | 37 | % | 42 | % | 54 | % | 55 | % |
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Small Cap Value Fund | Net asset value, beginning of period | Net investment income (loss)1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 63.89 | $ | 0.18 | $ | (12.37 | ) | $ | (12.19 | ) | $ | (0.33 | ) | $ | (4.30 | ) | $ | (4.63 | ) | ||||||||||||
Year ended 6/30/2018 | 59.31 | 0.29 | 7.35 | 7.64 | (0.28 | ) | (2.78 | ) | (3.06 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 46.46 | 0.19 | 12.90 | 13.09 | (0.24 | ) | — | (0.24 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 61.67 | 0.17 | (9.57 | ) | (9.40 | ) | (0.16 | ) | (5.65 | ) | (5.81 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 66.62 | 0.27 | 2.30 | 2.57 | (0.13 | ) | (7.39 | ) | (7.52 | ) | |||||||||||||||||||||
Year ended 6/30/2014 | 54.84 | 0.13 | 16.83 | 16.96 | (0.20 | ) | (4.98 | ) | (5.18 | ) | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 63.49 | 0.09 | (12.28 | ) | (12.19 | ) | (0.13 | ) | (4.30 | ) | (4.43 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 58.93 | 0.12 | 7.32 | 7.44 | (0.10 | ) | (2.78 | ) | (2.88 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 46.09 | 0.05 | 12.79 | 12.84 | — | — | — | ||||||||||||||||||||||||
Year ended 6/30/2016 | 61.27 | 0.04 | (9.51 | ) | (9.47 | ) | (0.06 | ) | (5.65 | ) | (5.71 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 66.26 | 0.12 | 2.28 | 2.40 | — | (7.39 | ) | (7.39 | ) | ||||||||||||||||||||||
Year ended 6/30/2014 | 54.67 | (0.02 | ) | 16.75 | 16.73 | (0.16 | ) | (4.98 | ) | (5.14 | ) | ||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 52.65 | (0.11 | ) | (10.11 | ) | (10.22 | ) | — | (4.30 | ) | (4.30 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 49.60 | (0.28 | ) | 6.11 | 5.83 | — | (2.78 | ) | (2.78 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 39.09 | (0.30 | ) | 10.81 | 10.51 | — | — | — | |||||||||||||||||||||||
Year ended 6/30/2016 | 53.25 | (0.30 | ) | (8.21 | ) | (8.51 | ) | — | (5.65 | ) | (5.65 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 58.99 | (0.32 | ) | 1.97 | 1.65 | — | (7.39 | ) | (7.39 | ) | |||||||||||||||||||||
Year ended 6/30/2014 | 49.40 | (0.43 | ) | 15.04 | 14.61 | (0.04 | ) | (4.98 | ) | (5.02 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Small Cap Value Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income (loss) | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 47.07 | –19.56 | % | $ | 586,634 | 1.03 | %3 | 1.03 | %3 | 0.59 | %3 | |||||||||||||||
Year ended 6/30/2018 | 63.89 | 13.33 | 715,194 | 1.02 | 1.02 | 0.47 | |||||||||||||||||||||
Year ended 6/30/2017 | 59.31 | 28.15 | 669,810 | 1.04 | 1.04 | 0.35 | |||||||||||||||||||||
Year ended 6/30/2016 | 46.46 | –15.63 | 699,420 | 1.04 | 1.04 | 0.33 | |||||||||||||||||||||
Year ended 6/30/2015 | 61.67 | 4.64 | 951,911 | 1.06 | 1.06 | 0.43 | |||||||||||||||||||||
Year ended 6/30/2014 | 66.62 | 32.40 | 785,915 | 0.99 | 0.99 | 0.21 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 46.87 | –19.67 | 44,949 | 1.283 | 1.283 | 0.293 | |||||||||||||||||||||
Year ended 6/30/2018 | 63.49 | 13.05 | 70,928 | 1.27 | 1.27 | 0.20 | |||||||||||||||||||||
Year ended 6/30/2017 | 58.93 | 27.83 | 89,795 | 1.29 | 1.29 | 0.09 | |||||||||||||||||||||
Year ended 6/30/2016 | 46.09 | –15.83 | 113,335 | 1.29 | 1.29 | 0.07 | |||||||||||||||||||||
Year ended 6/30/2015 | 61.27 | 4.37 | 194,587 | 1.31 | 1.31 | 0.19 | |||||||||||||||||||||
Year ended 6/30/2014 | 66.26 | 32.06 | 204,205 | 1.24 | 1.24 | (0.04 | ) | ||||||||||||||||||||
Class C | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 38.13 | –19.96 | 9,100 | 2.033 | 2.033 | (0.44 | )3 | ||||||||||||||||||||
Year ended 6/30/2018 | 52.65 | 12.21 | 13,824 | 2.02 | 2.02 | (0.55 | ) | ||||||||||||||||||||
Year ended 6/30/2017 | 49.60 | 26.85 | 17,084 | 2.04 | 2.04 | (0.66 | ) | ||||||||||||||||||||
Year ended 6/30/2016 | 39.09 | –16.46 | 20,308 | 2.04 | 2.04 | (0.68 | ) | ||||||||||||||||||||
Year ended 6/30/2015 | 53.25 | 3.60 | 35,172 | 2.06 | 2.06 | (0.58 | ) | ||||||||||||||||||||
Year ended 6/30/2014 | 58.99 | 31.09 | 43,161 | 1.99 | 1.99 | (0.79 | ) |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2018* | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Portfolio turnover rate | 23 | % | 29 | % | 29 | % | 45 | % | 43 | % | 43 | % |
1 Net investment income (loss) per share has been calculated based on average shares outstanding during the period.
2 Total returns exclude the effects of sales charges. The Fund's investment advisor may have waived a portion of its advisory fee and/or reimbursed a portion of the Fund's expenses. Without such waiver and/or reimbursement, the Fund's performance would have been lower. Returns for periods less than one year are not annualized.
3 Annualized.
* Unaudited
The accompanying notes are an integral part of these financial statements.
62
Financial Highlights
The following per share data and ratios have been derived from information provided in the financial statements.
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Small Cap Diversified Value Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 12.21 | $ | 0.04 | $ | (2.39 | ) | $ | (2.35 | ) | $ | (0.08 | ) | $ | (0.85 | ) | $ | (0.93 | ) | ||||||||||||
Year ended 6/30/2018 | 12.06 | 0.10 | 1.85 | 1.95 | (0.05 | ) | (1.75 | ) | (1.80 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 9.12 | 0.09 | 2.94 | 3.03 | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 10.01 | 0.06 | (0.66 | ) | (0.60 | ) | (0.04 | ) | (0.25 | ) | (0.29 | ) | |||||||||||||||||||
Year from 6/30/20144 to 6/30/2015 | 10.00 | 0.05 | 0.22 | 0.27 | (0.04 | ) | (0.22 | ) | (0.26 | ) | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 12.14 | 0.03 | (2.37 | ) | (2.34 | ) | (0.06 | ) | (0.85 | ) | (0.91 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 12.01 | 0.07 | 1.84 | 1.91 | (0.03 | ) | (1.75 | ) | (1.78 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 9.09 | 0.06 | 2.93 | 2.99 | (0.07 | ) | — | (0.07 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 10.00 | 0.05 | (0.68 | ) | (0.63 | ) | (0.03 | ) | (0.25 | ) | (0.28 | ) | |||||||||||||||||||
Year from 6/30/20144 to 6/30/2015 | 10.00 | 0.03 | 0.22 | 0.25 | (0.03 | ) | (0.22 | ) | (0.25 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Small Cap Diversified Value Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 8.93 | –19.59 | % | $ | 37,280 | 0.90 | %3 | 1.21 | %3 | 0.72 | %3 | |||||||||||||||
Year ended 6/30/2018 | 12.21 | 17.48 | 40,128 | 0.90 | 1.45 | 0.80 | |||||||||||||||||||||
Year ended 6/30/2017 | 12.06 | 33.26 | 19,265 | 0.90 | 1.70 | 0.86 | |||||||||||||||||||||
Year ended 6/30/2016 | 9.12 | –5.80 | 14,446 | 1.25 | 2.13 | 0.72 | |||||||||||||||||||||
Year from 6/30/20144 to 6/30/2015 | 10.01 | 2.93 | 15,337 | 1.25 | 3.75 | 0.48 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 8.89 | –19.66 | 2,401 | 1.153 | 1.463 | 0.473 | |||||||||||||||||||||
Year ended 6/30/2018 | 12.14 | 17.18 | 2,835 | 1.15 | 1.70 | 0.58 | |||||||||||||||||||||
Year ended 6/30/2017 | 12.01 | 32.86 | 721 | 1.15 | 1.89 | 0.55 | |||||||||||||||||||||
Year ended 6/30/2016 | 9.09 | –6.14 | 232 | 1.50 | 2.38 | 0.53 | |||||||||||||||||||||
Year from 6/30/20144 to 6/30/2015 | 10.00 | 2.71 | 130 | 1.50 | 4.25 | 0.29 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||
December 31, 2018* | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Portfolio turnover rate | 26 | % | 95 | % | 58 | % | 89 | % | 40 | % |
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Global Value Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 13.30 | $ | 0.06 | $ | (2.31 | ) | $ | (2.25 | ) | $ | (0.14 | ) | $ | (0.90 | ) | $ | (1.04 | ) | ||||||||||||
Year ended 6/30/2018 | 12.82 | 0.11 | 1.09 | 1.20 | (0.13 | ) | (0.59 | ) | (0.72 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 10.10 | 0.12 | 2.70 | 2.82 | (0.10 | ) | — | (0.10 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 11.93 | 0.13 | (1.23 | ) | (1.10 | ) | (0.12 | ) | (0.61 | ) | (0.73 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 13.31 | 0.14 | (0.46 | ) | (0.32 | ) | (0.30 | ) | (0.76 | ) | (1.06 | ) | |||||||||||||||||||
Year ended 6/30/2014 | 11.49 | 0.41 | 2.45 | 2.86 | (0.17 | ) | (0.87 | ) | (1.04 | ) | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 13.28 | 0.03 | (2.30 | ) | (2.27 | ) | (0.09 | ) | (0.90 | ) | (0.99 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 12.80 | 0.07 | 1.10 | 1.17 | (0.10 | ) | (0.59 | ) | (0.69 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 10.09 | 0.14 | 2.65 | 2.79 | (0.08 | ) | — | (0.08 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 11.91 | 0.10 | (1.23 | ) | (1.13 | ) | (0.08 | ) | (0.61 | ) | (0.69 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 13.29 | 0.10 | (0.45 | ) | (0.35 | ) | (0.27 | ) | (0.76 | ) | (1.03 | ) | |||||||||||||||||||
Period from 8/30/20134 to 6/30/2014 | 11.85 | 0.34 | 2.13 | 2.47 | (0.16 | ) | (0.87 | ) | (1.03 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Global Value Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 10.01 | –17.30 | % | $ | 7,368 | 1.00 | %3 | 3.01 | %3 | 0.91 | %3 | |||||||||||||||
Year ended 6/30/2018 | 13.30 | 9.59 | 8,987 | 1.10 | 2.87 | 0.83 | |||||||||||||||||||||
Year ended 6/30/2017 | 12.82 | 27.93 | 7,694 | 1.10 | 3.37 | 1.00 | |||||||||||||||||||||
Year ended 6/30/2016 | 10.10 | –9.25 | 5,199 | 1.10 | 4.14 | 1.25 | |||||||||||||||||||||
Year ended 6/30/2015 | 11.93 | –1.98 | 6,144 | 1.10 | 4.34 | 1.11 | |||||||||||||||||||||
Year ended 6/30/2014 | 13.31 | 25.98 | 3,867 | 1.10 | 6.26 | 3.29 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 10.02 | –17.45 | 248 | 1.253 | 3.183 | 0.523 | |||||||||||||||||||||
Year ended 6/30/2018 | 13.28 | 9.36 | 732 | 1.35 | 3.12 | 0.55 | |||||||||||||||||||||
Year ended 6/30/2017 | 12.80 | 27.69 | 436 | 1.35 | 3.37 | 1.19 | |||||||||||||||||||||
Year ended 6/30/2016 | 10.09 | –9.47 | 100 | 1.35 | 4.39 | 0.96 | |||||||||||||||||||||
Year ended 6/30/2015 | 11.91 | –2.22 | 110 | 1.35 | 4.77 | 0.79 | |||||||||||||||||||||
Period from 8/30/20134 to 6/30/2014 | 13.29 | 21.88 | 137 | 1.353 | 6.583 | 3.213 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2018* | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Portfolio turnover rate | 21 | % | 43 | % | 38 | % | 52 | % | 42 | % | 52 | % |
1 Net investment income per share has been calculated based on average shares outstanding during the period.
2 Total returns exclude the effects of sales charges. The Fund's investment advisor may have waived a portion of its advisory fee and/or reimbursed a portion of the Fund's expenses. Without such waiver and/or reimbursement, the Fund's performance would have been lower. Returns for periods less than one year are not annualized.
3 Annualized.
4 Commencement of operations.
* Unaudited
The accompanying notes are an integral part of these financial statements.
63
Financial Highlights
The following per share data and ratios have been derived from information provided in the financial statements.
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
International Value Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 11.57 | $ | 0.05 | $ | (1.90 | ) | $ | (1.85 | ) | $ | (0.14 | ) | $ | (0.58 | ) | $ | (0.72 | ) | ||||||||||||
Year ended 6/30/2018 | 11.85 | 0.11 | 0.31 | 0.42 | (0.13 | ) | (0.57 | ) | (0.70 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 9.76 | 0.12 | 2.38 | 2.50 | (0.17 | ) | (0.24 | ) | (0.41 | ) | |||||||||||||||||||||
Period from 12/31/20154 to 6/30/2016 | 10.00 | 0.16 | (0.40 | ) | (0.24 | ) | — | — | — |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
International Value Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 9.00 | –16.21 | % | $ | 2,146 | 1.02 | %3 | 7.40 | %3 | 0.92 | %3 | |||||||||||||||
Year ended 6/30/2018 | 11.57 | 3.50 | 2,543 | 1.15 | 6.01 | 0.90 | |||||||||||||||||||||
Year ended 6/30/2017 | 11.85 | 26.14 | 2,422 | 1.15 | 7.36 | 1.12 | |||||||||||||||||||||
Period from 12/31/20154 to 6/30/2016 | 9.76 | –2.40 | 1,806 | 1.153 | 12.673 | 3.173 |
Six Months Ended December 31, | Year Ended June 30, | Period December 31, 20154 through June 30, | |||||||||||||||||
2018* | 2018 | 2017 | 2016 | ||||||||||||||||
Portfolio turnover rate | 23 | % | 33 | % | 34 | % | 17 | % |
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Value Opportunities Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 30.38 | $ | 0.18 | $ | (4.24 | ) | $ | (4.06 | ) | $ | (0.31 | ) | $ | (2.38 | ) | $ | (2.69 | ) | ||||||||||||
Year ended 6/30/2018 | 27.99 | 0.40 | 2.93 | 3.33 | (0.53 | ) | (0.41 | ) | (0.94 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 22.21 | 0.38 | 5.99 | 6.37 | (0.59 | ) | — | (0.59 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 29.13 | 0.69 | (3.68 | ) | (2.99 | ) | (0.49 | ) | (3.44 | ) | (3.93 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 29.88 | 0.41 | 1.35 | 1.76 | (0.42 | ) | (2.09 | ) | (2.51 | ) | |||||||||||||||||||||
Year ended 6/30/2014 | 25.46 | 0.35 | 5.91 | 6.26 | (0.23 | ) | (1.61 | ) | (1.84 | ) | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 30.40 | 0.14 | (4.24 | ) | (4.10 | ) | (0.22 | ) | (2.38 | ) | (2.60 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 28.00 | 0.31 | 2.95 | 3.26 | (0.45 | ) | (0.41 | ) | (0.86 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 22.21 | 0.31 | 5.99 | 6.30 | (0.51 | ) | — | (0.51 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 29.13 | 0.63 | (3.69 | ) | (3.06 | ) | (0.42 | ) | (3.44 | ) | (3.86 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 29.88 | 0.34 | 1.36 | 1.70 | (0.36 | ) | (2.09 | ) | (2.45 | ) | |||||||||||||||||||||
Year ended 6/30/2014 | 25.48 | 0.25 | 5.94 | 6.19 | (0.18 | ) | (1.61 | ) | (1.79 | ) | |||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 28.22 | 0.03 | (3.92 | ) | (3.89 | ) | (0.01 | ) | (2.38 | ) | (2.39 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 26.04 | 0.08 | 2.74 | 2.82 | (0.23 | ) | (0.41 | ) | (0.64 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 20.68 | 0.11 | 5.57 | 5.68 | (0.32 | ) | — | (0.32 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 27.41 | 0.42 | (3.47 | ) | (3.05 | ) | (0.24 | ) | (3.44 | ) | (3.68 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 28.31 | 0.12 | 1.27 | 1.39 | (0.20 | ) | (2.09 | ) | (2.29 | ) | |||||||||||||||||||||
Year ended 6/30/2014 | 24.28 | 0.04 | 5.65 | 5.69 | (0.05 | ) | (1.61 | ) | (1.66 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Value Opportunities Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 23.63 | –13.78 | % | $ | 413,215 | 0.96 | %3 | 0.96 | %3 | 1.22 | %3 | |||||||||||||||
Year ended 6/30/2018 | 30.38 | 12.11 | 453,184 | 0.97 | 0.97 | 1.36 | |||||||||||||||||||||
Year ended 6/30/2017 | 27.99 | 28.79 | 347,924 | 0.99 | 0.99 | 1.46 | |||||||||||||||||||||
Year ended 6/30/2016 | 22.21 | –10.48 | 259,421 | 1.00 | 1.00 | 2.80 | |||||||||||||||||||||
Year ended 6/30/2015 | 29.13 | 6.75 | 363,363 | 0.96 | 0.96 | 1.42 | |||||||||||||||||||||
Year ended 6/30/2014 | 29.88 | 25.67 | 265,138 | 0.99 | 0.99 | 1.25 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 23.70 | –13.88 | 115,084 | 1.213 | 1.213 | 0.943 | |||||||||||||||||||||
Year ended 6/30/2018 | 30.40 | 11.84 | 136,325 | 1.22 | 1.22 | 1.07 | |||||||||||||||||||||
Year ended 6/30/2017 | 28.00 | 28.47 | 136,525 | 1.24 | 1.24 | 1.21 | |||||||||||||||||||||
Year ended 6/30/2016 | 22.21 | –10.71 | 132,870 | 1.25 | 1.25 | 2.55 | |||||||||||||||||||||
Year ended 6/30/2015 | 29.13 | 6.47 | 201,477 | 1.21 | 1.21 | 1.19 | |||||||||||||||||||||
Year ended 6/30/2014 | 29.88 | 25.34 | 165,608 | 1.24 | 1.24 | 0.91 | |||||||||||||||||||||
Class C | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 21.94 | –14.20 | 40,808 | 1.963 | 1.963 | 0.203 | |||||||||||||||||||||
Year ended 6/30/2018 | 28.22 | 10.99 | 49,624 | 1.97 | 1.97 | 0.30 | |||||||||||||||||||||
Year ended 6/30/2017 | 26.04 | 27.53 | 57,953 | 1.99 | 1.99 | 0.46 | |||||||||||||||||||||
Year ended 6/30/2016 | 20.68 | –11.37 | 63,637 | 2.00 | 2.00 | 1.84 | |||||||||||||||||||||
Year ended 6/30/2015 | 27.41 | 5.65 | 76,647 | 1.96 | 1.96 | 0.43 | |||||||||||||||||||||
Year ended 6/30/2014 | 28.31 | 24.44 | 52,042 | 1.99 | 1.99 | 0.17 |
Six Months Ended December 31, | Year Ended June 30, | ||||||||||||||||||||||||||
2018* | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Portfolio turnover rate | 37 | % | 55 | % | 83 | % | 62 | % | 101 | % | 45 | % |
1 Net investment income per share has been calculated based on average shares outstanding during the period.
2 Total returns exclude the effects of sales charges. The Fund's investment advisor may have waived a portion of its advisory fee and/or reimbursed a portion of the Fund's expenses. Without such waiver and/or reimbursement, the Fund's performance would have been lower. Returns for periods less than one year are not annualized.
3 Annualized.
4 Commencement of operations.
* Unaudited
The accompanying notes are an integral part of these financial statements.
64
Financial Highlights
The following per share data and ratios have been derived from information provided in the financial statements.
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Capital Income Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 12.84 | $ | 0.21 | $ | (1.90 | ) | $ | (1.69 | ) | $ | (0.22 | ) | $ | — | $ | (0.22 | ) | |||||||||||||
Year ended 6/30/2018 | 12.51 | 0.45 | 0.37 | 0.82 | (0.49 | ) | — | (0.49 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 10.56 | 0.45 | 2.00 | 2.45 | (0.50 | ) | — | (0.50 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 12.22 | 0.51 | (1.13 | ) | (0.62 | ) | (0.54 | ) | (0.50 | ) | (1.04 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 12.85 | 0.47 | (0.38 | ) | 0.09 | (0.52 | ) | (0.20 | ) | (0.72 | ) | ||||||||||||||||||||
Year ended 6/30/2014 | 11.83 | 0.57 | 1.64 | 2.21 | (0.51 | ) | (0.68 | ) | (1.19 | ) | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 13.36 | 0.20 | (1.96 | ) | (1.76 | ) | (0.20 | ) | — | (0.20 | ) | ||||||||||||||||||||
Year ended 6/30/2018 | 13.01 | 0.43 | 0.38 | 0.81 | (0.46 | ) | — | (0.46 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 10.97 | 0.44 | 2.07 | 2.51 | (0.47 | ) | — | (0.47 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 12.65 | 0.50 | (1.17 | ) | (0.67 | ) | (0.51 | ) | (0.50 | ) | (1.01 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 13.24 | 0.44 | (0.35 | ) | 0.09 | (0.48 | ) | (0.20 | ) | (0.68 | ) | ||||||||||||||||||||
Year ended 6/30/2014 | 12.18 | 0.61 | 1.61 | 2.22 | (0.48 | ) | (0.68 | ) | (1.16 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Capital Income Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 10.93 | –13.36 | % | $ | 13,909 | 0.80 | %3 | 1.42 | %3 | 3.28 | %3 | |||||||||||||||
Year ended 6/30/2018 | 12.84 | 6.71 | 20,005 | 0.80 | 1.26 | 3.55 | |||||||||||||||||||||
Year ended 6/30/2017 | 12.51 | 23.54 | 20,582 | 0.80 | 1.27 | 3.83 | |||||||||||||||||||||
Year ended 6/30/2016 | 10.56 | –4.77 | 20,873 | 0.80 | 1.18 | 4.63 | |||||||||||||||||||||
Year ended 6/30/2015 | 12.22 | 0.69 | 33,958 | 0.80 | 1.05 | 3.75 | |||||||||||||||||||||
Year ended 6/30/2014 | 12.85 | 19.71 | 21,399 | 0.80 | 1.34 | 4.61 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 11.40 | –13.32 | 13,522 | 1.053 | 1.673 | 3.093 | |||||||||||||||||||||
Year ended 6/30/2018 | 13.36 | 6.34 | 16,810 | 1.05 | 1.51 | 3.28 | |||||||||||||||||||||
Year ended 6/30/2017 | 13.01 | 23.17 | 21,171 | 1.05 | 1.52 | 3.56 | |||||||||||||||||||||
Year ended 6/30/2016 | 10.97 | –4.99 | 17,309 | 1.05 | 1.43 | 4.36 | |||||||||||||||||||||
Year ended 6/30/2015 | 12.65 | 0.73 | 42,398 | 1.05 | 1.30 | 3.39 | |||||||||||||||||||||
Year ended 6/30/2014 | 13.24 | 19.17 | 47,872 | 1.05 | 1.51 | 4.76 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2018* | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Portfolio turnover rate | 24 | % | 46 | % | 71 | % | 93 | % | 62 | % | 53 | % |
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
High Yield Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 11.90 | $ | 0.35 | $ | (0.74 | )4 | $ | (0.39 | ) | $ | (0.35 | ) | $ | — | $ | (0.35 | ) | |||||||||||||
Year ended 6/30/2018 | 12.26 | 0.72 | (0.37 | )4 | 0.35 | (0.71 | ) | — | (0.71 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 11.47 | 0.75 | 0.794 | 1.54 | (0.75 | ) | — | (0.75 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 12.51 | 0.76 | (0.94 | )4 | (0.18 | ) | (0.77 | ) | (0.09 | ) | (0.86 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 13.37 | 0.70 | (0.75 | )4 | (0.05 | ) | (0.71 | ) | (0.10 | ) | (0.81 | ) | |||||||||||||||||||
Year ended 6/30/2014 | 12.83 | 0.76 | 0.67 | 1.43 | (0.76 | ) | (0.13 | ) | (0.89 | ) | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 11.83 | 0.33 | (0.74 | )4 | (0.41 | ) | (0.33 | ) | — | (0.33 | ) | ||||||||||||||||||||
Year ended 6/30/2018 | 12.18 | 0.69 | (0.37 | )5 | 0.32 | (0.67 | ) | — | (0.67 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 11.40 | 0.72 | 0.784 | 1.50 | (0.72 | ) | — | (0.72 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 12.43 | 0.73 | (0.94 | )4 | (0.21 | ) | (0.73 | ) | (0.09 | ) | (0.82 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 13.29 | 0.67 | (0.75 | )5 | (0.08 | ) | (0.68 | ) | (0.10 | ) | (0.78 | ) | |||||||||||||||||||
Year ended 6/30/2014 | 12.75 | 0.73 | 0.66 | 1.39 | (0.72 | ) | (0.13 | ) | (0.85 | ) | |||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 11.89 | 0.29 | (0.74 | ) | (0.45 | ) | (0.29 | ) | — | (0.29 | ) | ||||||||||||||||||||
Year ended 6/30/2018 | 12.26 | 0.60 | (0.38 | )4 | 0.22 | (0.59 | ) | — | (0.59 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 11.47 | 0.63 | 0.794 | 1.42 | (0.63 | ) | — | (0.63 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 12.50 | 0.65 | (0.94 | )6 | (0.29 | ) | (0.65 | ) | (0.09 | ) | (0.74 | ) | |||||||||||||||||||
Year ended 6/30/2015 | 13.36 | 0.58 | (0.76 | )4 | (0.18 | ) | (0.58 | ) | (0.10 | ) | (0.68 | ) | |||||||||||||||||||
Year ended 6/30/2014 | 12.82 | 0.62 | 0.68 | 1.30 | (0.63 | ) | (0.13 | ) | (0.76 | ) | |||||||||||||||||||||
Class Z | |||||||||||||||||||||||||||||||
Six months ended 12/31/2018* | 11.90 | 0.35 | (0.73 | ) | (0.38 | ) | (0.36 | ) | — | (0.36 | ) | ||||||||||||||||||||
Period from 3/29/20187 to 6/30/2018 | 12.00 | 0.18 | (0.11 | ) | 0.07 | (0.17 | ) | — | (0.17 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
High Yield Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | $ | 11.16 | –3.37 | % | $ | 1,612,725 | 0.70 | %3 | 0.74 | %3 | 5.82 | %3 | |||||||||||||||
Year ended 6/30/2018 | 11.90 | 2.87 | 1,918,320 | 0.70 | 0.74 | 5.93 | |||||||||||||||||||||
Year ended 6/30/2017 | 12.26 | 13.75 | 2,091,104 | 0.70 | 0.74 | 6.22 | |||||||||||||||||||||
Year ended 6/30/2016 | 11.47 | –1.12 | 1,884,613 | 0.70 | 0.74 | 6.59 | |||||||||||||||||||||
Year ended 6/30/2015 | 12.51 | –0.26 | 2,060,504 | 0.70 | 0.73 | 5.56 | |||||||||||||||||||||
Year ended 6/30/2014 | 13.37 | 11.51 | 1,127,080 | 0.70 | 0.75 | 5.82 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 11.09 | –3.53 | 414,035 | 0.953 | 0.993 | 5.583 | |||||||||||||||||||||
Year ended 6/30/2018 | 11.83 | 2.68 | 466,960 | 0.95 | 0.99 | 5.69 | |||||||||||||||||||||
Year ended 6/30/2017 | 12.18 | 13.42 | 566,806 | 0.95 | 0.99 | 5.99 | |||||||||||||||||||||
Year ended 6/30/2016 | 11.40 | –1.34 | 603,081 | 0.95 | 0.99 | 6.35 | |||||||||||||||||||||
Year ended 6/30/2015 | 12.43 | –0.54 | 682,129 | 0.95 | 0.98 | 5.31 | |||||||||||||||||||||
Year ended 6/30/2014 | 13.29 | 11.28 | 607,104 | 0.95 | 1.00 | 5.59 | |||||||||||||||||||||
Class C | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 11.15 | –3.86 | 3,057 | 1.703 | 1.743 | 4.833 | |||||||||||||||||||||
Year ended 6/30/2018 | 11.89 | 1.76 | 3,380 | 1.70 | 1.74 | 4.93 | |||||||||||||||||||||
Year ended 6/30/2017 | 12.26 | 12.62 | 3,010 | 1.70 | 1.74 | 5.22 | |||||||||||||||||||||
Year ended 6/30/2016 | 11.47 | –2.02 | 2,737 | 1.70 | 1.74 | 5.61 | |||||||||||||||||||||
Year ended 6/30/2015 | 12.50 | –1.25 | 3,581 | 1.70 | 1.73 | 4.53 | |||||||||||||||||||||
Year ended 6/30/2014 | 13.36 | 10.40 | 3,623 | 1.70 | 1.75 | 4.72 | |||||||||||||||||||||
Class Z | |||||||||||||||||||||||||||
Six months ended 12/31/2018* | 11.16 | –3.32 | 343,170 | 0.603 | 0.643 | 5.943 | |||||||||||||||||||||
Period from 3/29/20187 to 6/30/2018 | 11.90 | 0.59 | 328,769 | 0.603 | 0.703 | 6.543 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2018* | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Portfolio turnover rate | 14 | % | 38 | % | 46 | % | 45 | % | 44 | % | 51 | % |
1 Net investment income per share has been calculated based on average shares outstanding during the period.
2 Total returns exclude the effects of sales charges. The Fund's investment advisor may have waived a portion of its advisory fee and/or reimbursed a portion of the Fund's expenses. Without such waiver and/or reimbursement, the Fund's performance would have been lower. Returns for periods less than one year are not annualized.
3 Annualized.
4 Redemption fees per share were less than $0.005.
5 Includes redemption fees per share of $0.01.
6 Includes redemption fees per share of $0.02.
7 Commencement of operations.
* Unaudited
The accompanying notes are an integral part of these financial statements.
65
Notes to the Financial Statements
DECEMBER 31, 2018 (UNAUDITED)
NOTE 1.
Organization. Hotchkis & Wiley Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end, management investment company. The Trust was organized as a Delaware statutory trust on July 23, 2001 and consists of ten series. The Hotchkis & Wiley Diversified Value Fund, the Hotchkis & Wiley Large Cap Value Fund, the Hotchkis & Wiley Mid-Cap Value Fund, the Hotchkis & Wiley Small Cap Value Fund, the Hotchkis & Wiley Small Cap Diversified Value Fund, the Hotchkis & Wiley Global Value Fund, the Hotchkis & Wiley International Value Fund, the Hotchkis & Wiley Capital Income Fund and the Hotchkis & Wiley High Yield Fund (collectively, the "H&W Funds") are each a diversified series and the Hotchkis & Wiley Value Opportunities Fund (together with the H&W Funds, hereafter referred to as the "Funds") is a non-diversified series of the Trust. The Trust was organized to acquire the assets and liabilities of the Mercury HW Large Cap Value Fund, the Mercury HW Mid-Cap Value Fund and the Mercury HW Small Cap Value Fund (the "Mercury HW Funds"). On February 4, 2002, the Mercury HW Funds were reorganized into the Trust through a non-taxable exchange. On August 28, 2009, the Hotchkis & Wiley Core Value Fund was renamed the Hotchkis & Wiley Diversified Value Fund and the Hotchkis & Wiley All Cap Value Fund was renamed the Hotchkis & Wiley Value Opportunities Fund.
The Large Cap Value Fund and Mid-Cap Value Fund have five classes of shares: Class I, Class A, Class C, Class R and Class T. The Diversified Value Fund, Small Cap Value Fund, Small Cap Diversified Value Fund, Global Value Fund, International Value Fund, Value Opportunities Fund and Capital Income Fund have four classes of shares: Class I, Class A, Class C and Class T. The High Yield Fund has five classes of shares: Class I, Class A, Class C, Class T and Class Z. Class A and Class T shares are sold with a front-end sales charge. Class C shares may be subject to a contingent deferred sales charge. Class C shares are automatically converted to Class A shares approximately eight years after purchase and will then be subject to lower distribution and service fees. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Class A, Class C, Class R and Class T shares bear certain expenses related to the distribution and servicing expenditures. Currently, the Small Cap Diversified Value Fund, Global Value Fund and Capital Income Fund are not offering Class C shares to investors, the International Value Fund is not offering Class A or Class C shares to investors and the Funds are not offering Class T shares to investors.
Significant Accounting Policies. The Funds' financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), which may require the use of management accruals and estimates. Actual results could differ from those estimates and those differences could be significant. Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946 "Financial Services — Investment Companies". The following is a summary of significant accounting policies followed by the Funds.
Security Valuation. Portfolio securities that are listed on a securities exchange (whether domestic or foreign) or The Nasdaq Stock Market ("NSM") (including the Nasdaq National Market and the Nasdaq Small Cap Market) are valued at the last reported sale price (or official closing price) on that day as of the close of the New York Stock Exchange (which is generally 4:00 p.m. Eastern time), or, in the absence of recorded sales, at the average of the last bid and asked quotation on such exchange or NSM. Unlisted equity securities that are not included in NSM are valued at the last sale price, or if the last sale price is unavailable, at the average of the quoted bid and asked prices in the over-the-counter market. Fixed-income securities are generally valued on the basis of quotes obtained from an approved independent pricing service but may also be valued based on reported transactions on FINRA's Trade Reporting and Compliance Engine (TRACE) or quotations provided by a broker-dealer. The pricing services may provide a price determined by a matrix pricing method or other analytical pricing models. Investments quoted in foreign currency are valued daily in U.S. dollars on the basis of the foreign currency exchange rate prevailing at the time of valuation. Securities and other assets for which market quotations are not readily available are valued at their fair value as determined by Hotchkis & Wiley Capital Management, LLC (the "Advisor") under guidelines established by and under the general supervision and responsibility of the Trust's Board of Trustees (the "Board"). The Board has approved the use of a third-party vendor's proprietary fair value pricing model to assist in determining current valuation for foreign securities traded in markets that close prior to the New York Stock Exchange. When fair value pricing is employed, the value of the portfolio securities used to calculate the Funds' net asset values may differ from quoted or official closing prices.
The Trust has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination. Various inputs are used in determining the value of each Fund's investments. These inputs are summarized in the following three broad categories:
• Level 1 — Quoted unadjusted prices for identical instruments in active markets to which the Trust has access at the date of measurement.
• Level 2 — Other significant observable inputs (including quoted prices for similar instruments, interest rates, current yields, credit quality, prepayment speeds for mortgage related securities, collateral for asset-backed securities, foreign security indices, foreign exchange rates, fair value estimates for foreign securities, and changes in benchmark securities indices). Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.
• Level 3 — Significant unobservable inputs including model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect the Trust's own assumptions that market participants would use to price the asset or liability based on the best available information.
66
The following table presents the valuation levels of each Fund's assets as of December 31, 2018:
Diversified Value | Large Cap Value | Mid-Cap Value | Small Cap Value | Small Cap Diversified Value | |||||||||||||||||||
Level 1 — Quoted prices in an active market: | |||||||||||||||||||||||
Common Stocks | $ | 87,126,123 | $ | 381,970,747 | $ | 1,261,431,758 | $ | 606,002,047 | $ | 38,032,442 | |||||||||||||
Money Market Funds | — | — | — | 24,116,823 | — | ||||||||||||||||||
Time Deposits | 648,394 | 13,049,677 | 5,234,037 | 24,482,165 | 1,108,597 | ||||||||||||||||||
Level 2 — Other significant observable market inputs: | |||||||||||||||||||||||
Common Stocks: | |||||||||||||||||||||||
Energy | — | — | 36,929,586 | 2,756,307 | — | ||||||||||||||||||
Industrials | — | — | 31,721,129 | — | — | ||||||||||||||||||
Real Estate | — | — | — | 7,746,981 | — | ||||||||||||||||||
Level 3 — Significant unobservable inputs | — | — | — | — | — | ||||||||||||||||||
Total Investments | $ | 87,774,517 | $ | 395,020,424 | $ | 1,335,316,510 | $ | 665,104,323 | $ | 39,141,039 | |||||||||||||
Global Value | International Value | Value Opportunities | Capital Income | High Yield | |||||||||||||||||||
Level 1 — Quoted prices in an active market: | |||||||||||||||||||||||
Common Stocks | $ | 5,168,258 | $ | 642,624 | $ | 496,395,958 | $ | 14,097,516 | $ | — | |||||||||||||
Preferred Stocks | — | — | 1,667,330 | — | — | ||||||||||||||||||
Purchased Put Options | — | — | 6,008,650 | — | — | ||||||||||||||||||
Warrants | — | — | 1,170,014 | — | — | ||||||||||||||||||
Money Market Funds | — | — | 19,733,046 | 260,270 | 42,119,426 | ||||||||||||||||||
Time Deposits | 9,979 | 41,748 | 8,143,564 | 106,391 | 8,231,662 | ||||||||||||||||||
Level 2 — Other significant observable market inputs: | |||||||||||||||||||||||
Common Stocks: | |||||||||||||||||||||||
Communication Services | — | 79,258 | — | — | — | ||||||||||||||||||
Consumer Discretionary | 183,631 | 93,353 | — | — | — | ||||||||||||||||||
Consumer Staples | 242,636 | 182,739 | — | — | — | ||||||||||||||||||
Energy | 69,056 | 115,047 | 4,403,171 | 280,807 | — | ||||||||||||||||||
Energy — Exploration & Production | — | — | — | — | 5,509,686 | ||||||||||||||||||
Financials | 1,336,949 | 521,402 | 4,578,563 | 243,530 | — | ||||||||||||||||||
Health Care | 95,425 | 110,905 | — | — | — | ||||||||||||||||||
Industrials | 431,607 | 198,466 | 12,032,524 | 415,335 | — | ||||||||||||||||||
Information Technology | 76,880 | 139,667 | — | — | — | ||||||||||||||||||
Materials | — | 72,799 | — | — | — | ||||||||||||||||||
Preferred Stocks: | |||||||||||||||||||||||
Financials | — | — | 185,878 | — | — | ||||||||||||||||||
Corporate Bonds | — | — | 15,273,812 | 10,186,886 | 2,088,887,987 | ||||||||||||||||||
Term Loans | — | — | — | 839,776 | 113,156,479 | ||||||||||||||||||
Purchased Put Options | — | — | 1,132,250 | — | — | ||||||||||||||||||
Warrants | — | — | 0 | — | 0 | ||||||||||||||||||
Level 3 — Significant unobservable inputs: | |||||||||||||||||||||||
Common Stocks: | |||||||||||||||||||||||
Automakers | — | — | — | — | 0 | ||||||||||||||||||
Consumer Discretionary | — | — | — | 236,640 | — | ||||||||||||||||||
Energy | — | — | — | 2,156 | — | ||||||||||||||||||
Energy — Exploration & Production | — | — | — | — | 160,741 | ||||||||||||||||||
Industrials | — | — | — | 124,848 | — | ||||||||||||||||||
Materials | — | — | 8,986,680 | 441,398 | — | ||||||||||||||||||
Metals/Mining Excluding Steel | — | — | — | — | 45,883,342 | ||||||||||||||||||
Oil Field Equipment & Services | — | — | — | — | 4,696,318 | ||||||||||||||||||
Specialty Retail | — | — | — | — | 19,821,422 | ||||||||||||||||||
Preferred Stocks: | |||||||||||||||||||||||
Consumer Staples | — | — | — | 69,846 | — | ||||||||||||||||||
Food — Wholesale | — | — | — | — | 11,272,351 | ||||||||||||||||||
Corporate Bonds | — | — | — | — | 0 | ||||||||||||||||||
Term Loans | — | — | 3,802,486 | 31,585 | 2,590,943 | ||||||||||||||||||
Total Investments | $ | 7,614,421 | $ | 2,198,008 | $ | 583,513,926 | $ | 27,336,984 | $ | 2,342,330,357 | |||||||||||||
Other Financial Instruments | |||||||||||||||||||||||
Level 1 — Quoted prices in an active market: | |||||||||||||||||||||||
Futures Contracts * | $ | (65,358 | ) | ||||||||||||||||||||
Level 2 — Other significant observable market inputs | — | ||||||||||||||||||||||
Level 3 — Significant unobservable inputs | — | ||||||||||||||||||||||
Total Other Financial Instruments | $ | (65,358 | ) |
* Futures contracts are derivative instruments not reflected on the Schedule of Investments and are reflected at the unrealized appreciation (depreciation) on the instrument.
67
Please refer to the Schedule of Investments for additional information regarding the composition of the amounts listed above.
The following table provides information about the Level 3 values, as well as their inputs, as of December 31, 2018:
Fair Value at December 31, 2018 | Valuation Techniques | Unobservable Inputs | Input Values | Impact to Valuation from an Increase to Input | |||||||||||||||||||
Value Opportunities | |||||||||||||||||||||||
Common Stocks: | $ | 2,094,411 | Market comparable companies | EBITDA multiple | 6.3 | x - 7.1x | Increase | ||||||||||||||||
6,892,269 | Market quote (stale) | N/A | $ | 212.58 | Increase | ||||||||||||||||||
Total Common Stocks | 8,986,680 | ||||||||||||||||||||||
Term Loans | 3,802,486 | Market quote (stale) | N/A | $ | 100.00 | Increase | |||||||||||||||||
$ | 12,789,166 | ||||||||||||||||||||||
Capital Income | |||||||||||||||||||||||
Common Stocks: | $ | 236,640 | Calculation of enterprise value using: Discounted cash flows Market comparable companies Transaction analysis | Yield (Discount rate of cash flows) EBITDA multiple Guideline transactions | 9.75 6x - 8x $499 Million - $602 Million | % - 11.75% | Decrease Increase Increase | ||||||||||||||||
0 | Estimated recovery value | Probability of asset recovery | $ | 0 | Increase | ||||||||||||||||||
2,156 | Last traded price (stale) | N/A | $ | 1.38 | Increase | ||||||||||||||||||
509,062 | Market comparable companies | EBITDA multiple | 5.0 | x - 7.3x | Increase | ||||||||||||||||||
57,184 | Market quote (stale) | N/A | $ | 212.58 | Increase | ||||||||||||||||||
Total Common Stocks | 805,042 | ||||||||||||||||||||||
Preferred Stocks | 69,846 | Last traded price (stale) | N/A | $ | 0.74 | Increase | |||||||||||||||||
Term Loans | 31,585 | Market quote (stale) | N/A | $ | 100.00 | Increase | |||||||||||||||||
$ | 906,473 | ||||||||||||||||||||||
High Yield | |||||||||||||||||||||||
Common Stocks: | $ | 19,821,422 | Calculation of enterprise value using: Discounted cash flows Market comparable companies Transaction analysis | Yield (Discount rate of cash flows) EBITDA multiple Guideline transactions | 9.75 6x - 8x $499 Million - $602 Million | % - 11.75% | Decrease Increase Increase | ||||||||||||||||
0 | Estimated recovery value | Probability of asset recovery | $ | 0 | Increase | ||||||||||||||||||
160,741 | Last traded price (stale) | N/A | $ | 1.38 | Increase | ||||||||||||||||||
45,883,342 | Market comparable companies | EBITDA multiple | 5.0 | x - 7.3x | Increase | ||||||||||||||||||
4,696,318 | Market quote (stale) | N/A | $ | 212.58 | Increase | ||||||||||||||||||
Total Common Stocks | 70,561,823 | ||||||||||||||||||||||
Preferred Stocks | 11,272,351 | Last traded price (stale) | N/A | $ | 0.74 | Increase | |||||||||||||||||
Corporate Bonds | 0 | Estimated recovery value | Probability of asset recovery | $ | 0 | Increase | |||||||||||||||||
Term Loans | 2,590,943 | Market quote (stale) | N/A | $ | 100.00 | Increase | |||||||||||||||||
$ | 84,425,117 |
68
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
Value Opportunities | |||||||||||||||||||
Common Stocks | Corporate Bonds | Term Loans | Total | ||||||||||||||||
Balance at June 30, 2018 | $ | 10,760,790 | $ | 3,990,031 | $ | 3,802,486 | $ | 18,553,307 | |||||||||||
Purchases | — | — | — | — | |||||||||||||||
Sales | (5,607,074 | ) | (4,090,070 | ) | — | (9,697,144 | ) | ||||||||||||
Accrued discounts (premiums) | — | 1,178 | — | 1,178 | |||||||||||||||
Realized gains (losses) | 4,794,075 | 2,827,010 | — | 7,621,085 | |||||||||||||||
Change in unrealized appreciation (depreciation) | (961,111 | ) | (2,728,149 | ) | — | (3,689,260 | ) | ||||||||||||
Transfers into Level 3 | — | — | — | — | |||||||||||||||
Balance at December 31, 2018 | $ | 8,986,680 | $ | — | $ | 3,802,486 | $ | 12,789,166 | |||||||||||
Change in unrealized appreciation (depreciation) for Level 3 assets held at December 31, 2018 | $ | (961,111 | ) | $ | — | $ | — | $ | (961,111 | ) |
Capital Income | |||||||||||||||||||||||
Common Stocks | Preferred Stocks | Corporate Bonds | Term Loans | Total | |||||||||||||||||||
Balance at June 30, 2018 | $ | 761,930 | $ | 69,846 | $ | 87,286 | $ | 31,585 | $ | 950,647 | |||||||||||||
Purchases | — | — | — | — | — | ||||||||||||||||||
Sales | (402 | ) | — | (89,474 | ) | — | (89,876 | ) | |||||||||||||||
Accrued discounts (premiums) | — | — | 26 | — | 26 | ||||||||||||||||||
Realized gains (losses) | 402 | — | 61,843 | — | 62,245 | ||||||||||||||||||
Change in unrealized appreciation (depreciation) | 43,112 | — | (59,681 | ) | — | (16,569 | ) | ||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | ||||||||||||||||||
Balance at December 31, 2018 | $ | 805,042 | $ | 69,846 | $ | — | $ | 31,585 | $ | 906,473 | |||||||||||||
Change in unrealized appreciation (depreciation) for Level 3 assets held at December 31, 2018 | $ | 43,112 | $ | — | $ | — | $ | — | $ | 43,112 | |||||||||||||
High Yield | |||||||||||||||||||||||
Common Stocks | Preferred Stocks | Corporate Bonds | Term Loans | Total | |||||||||||||||||||
Balance at June 30, 2018 | $ | 68,069,267 | $ | 11,272,351 | $ | 1,349,465 | $ | 2,590,943 | $ | 83,282,026 | |||||||||||||
Purchases | — | — | — | — | — | ||||||||||||||||||
Sales | (3,771,450 | ) | — | (1,383,299 | ) | — | (5,154,749 | ) | |||||||||||||||
Accrued discounts (premiums) | — | — | 400 | — | 400 | ||||||||||||||||||
Realized gains (losses) | 3,229,451 | — | 954,070 | — | 4,183,521 | ||||||||||||||||||
Change in unrealized appreciation (depreciation) | 3,034,555 | — | (920,636 | ) | — | 2,113,919 | |||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | ||||||||||||||||||
Balance at December 31, 2018 | $ | 70,561,823 | $ | 11,272,351 | $ | 0 | $ | 2,590,943 | $ | 84,425,117 | |||||||||||||
Change in unrealized appreciation (depreciation) for Level 3 assets held at December 31, 2018 | $ | 3,832,137 | $ | — | $ | — | $ | — | $ | 3,832,137 |
69
Income and Expense Allocation. Common expenses incurred by the Trust which are not allocable to a specific Fund are allocated among the Funds based upon relative net assets or evenly, depending on the nature of the expenditure. For all Funds, except the Capital Income Fund and High Yield Fund, net investment income, other than class-specific expenses, and realized and unrealized gains and losses are allocated daily to each class of shares based upon the relative net asset value of outstanding shares of each class at the beginning of the day (after adjusting for the current day's capital share activity of the respective class). For the Capital Income Fund and High Yield Fund, net investment income, other than class-specific expenses, and realized and unrealized gains and losses are allocated daily to each class of shares based upon the relative net asset value of settled shares of each class at the beginning of the day (after adjusting for the current day's capital share activity of the respective class).
Dividends and Distributions to Shareholders. Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income are declared daily and paid monthly for the Capital Income Fund and High Yield Fund and declared and paid annually for the Diversified Value Fund, Large Cap Value Fund, Mid-Cap Value Fund, Small Cap Value Fund, Small Cap Diversified Value Fund, Global Value Fund, International Value Fund and Value Opportunities Fund. Distributions of net realized capital gains, if any, will be declared and paid at least annually.
Security Transactions and Investment Income. Security and shareholder transactions are recorded on trade date. Realized gains and losses on sales of investments are calculated on the specifically identified cost basis of the securities. Dividend income, less foreign taxes withheld, if any, is recorded on the ex-dividend date. Interest income is recognized on the accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security using the effective yield method. Return of capital distributions received from real estate investment trust ("REIT") securities are recorded as an adjustment to the cost of the security and thus may impact unrealized gains or losses on the security.
Securities purchased or sold on a when-issued, delayed delivery or forward commitment basis may have extended settlement periods. The value of the security purchased is subject to market fluctuations during this period. The Funds will segregate or "earmark" liquid assets until the settlement date or otherwise cover their position in an amount sufficient to meet the Funds' obligations.
Foreign Currency Transactions. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Funds isolate the portion of realized gains or losses and do not isolate the portion of unrealized appreciation or depreciation resulting from changes in foreign exchange rates on securities from the fluctuations arising from changes in market prices of securities held. Reported net realized foreign exchange gains or losses arise from sales of securities, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Funds' books and the U.S. dollar equivalent of the amounts actually received or paid.
Payment In-Kind Securities. Certain Funds may invest in payment in-kind securities. Payment in-kind securities give the issuer the option at each interest payment date of making interest payments in either cash or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and may require a pro-rata adjustment to interest receivable from the unrealized appreciation or depreciation of securities on the Statements of Assets & Liabilities.
Restricted and Illiquid Securities. The Funds may invest in securities that are subject to legal or contractual restrictions on resale or are illiquid. Restricted securities generally may be resold in transactions exempt from registration. An illiquid security is a security which cannot be disposed of promptly (within seven days) and in the usual course of business at approximately its fair value and includes repurchase agreements maturing in excess of seven days, time deposits with a withdrawal penalty, non-negotiable instruments and instruments for which no market exists. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at the current valuation may be difficult.
Options. The Funds are subject to equity price risk in the normal course of pursuing their investment objectives. The Funds may purchase put options on securities to protect holdings in an underlying or related security against a substantial decline in market value. The Funds may purchase call options on securities and security indexes. A Fund may write a call or put option only if the option is "covered" by the Fund holding a position in the underlying securities or by other means which would permit immediate satisfaction of the Fund's obligation as writer of the option. Prior to exercise or expiration, an option may be closed by an offsetting purchase or sale of an option of the same series. The purchase and writing of options involves certain risks. If a put or call option purchased by a Fund is not sold when it has remaining value, and if the market price of the underlying security, in the case of a put, remains equal to or greater than the exercise price or, in the case of a call, remains less than or equal to the exercise price, the Fund will lose its entire investment in the option. There can be no assurance that a liquid market will exist when a Fund seeks to close out an option position. Furthermore, if trading restrictions or suspensions are imposed on the options markets, the Fund may be unable to close out a position. With options, there is minimal counterparty risk to the Funds since options are exchange traded and the exchange's clearinghouse, as counterparty to all exchange traded options, guarantees the options against default.
When a Fund purchases a put or call option, an amount equal to the premium paid is included on the Statements of Assets & Liabilities as an investment, and is subsequently adjusted to reflect the fair market value of the option. If an option expires on the stipulated expiration date or if the Fund enters into a closing sale transaction, a gain or loss is realized. If the Fund exercises a put option, a gain or loss is realized from the sale of the underlying security, and the proceeds from such sale are decreased by the premium originally paid. If the Fund exercises a call option, the cost of the security acquired is increased by the premium paid for the call.
70
Futures Contracts. The Value Opportunities Fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objective. The Fund may use futures contracts to gain exposure to, or hedge against, changes in the value of foreign currencies. A futures contract provides for the future sale by one party and purchase by another party of an asset at a specified price on a specified date. Upon entering into such contracts, the Fund is required to deposit with the broker, either in cash or securities, an initial margin deposit in an amount equal to a certain percentage of the contract amount. Subsequent payments (variation margin) are made or received by the Fund each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gains or losses by the Fund. Upon entering into such contracts, the Fund bears the risk of exchange rates moving unexpectedly, in which case the Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. When a contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund's basis in the contract. With futures, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange's clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. The use of futures contracts involves the risk of imperfect correlation in movements in the price of the futures contracts, exchange rates and the underlying hedged assets.
Credit Default Swap Contracts. The Value Opportunities Fund, Capital Income Fund and High Yield Fund may enter into credit default swap agreements for purposes of attempting to obtain a particular desired return at a lower cost to the Fund than if the Fund had invested directly in an instrument that yielded the desired return. The buyer in a credit default swap is obligated to pay the seller a periodic stream of payments over the term of the contract provided no event of default on an underlying reference obligation has occurred. In the event of default, the seller must pay the buyer a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced entity or underlying securities comprising the referenced index. Credit default swaps involve greater risks than if the Fund invested in the reference obligation directly. In addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risk. The Fund's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund's exposure to the counterparty.
The Value Opportunities Fund, Capital Income Fund and High Yield Fund are party to an International Swap Dealers Association, Inc. Master Agreement ("ISDA Master Agreement") with each of Goldman Sachs International and JPMorgan Chase Bank, N.A. that governs transactions, such as over-the-counter swap contracts, entered into by the Funds and the counterparty. The ISDA Master Agreement contains provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle the counterparty to elect to terminate early and cause settlement of all outstanding transactions under the ISDA Master Agreement.
Upon entering into swap agreements, the Value Opportunities Fund, Capital Income Fund and High Yield Fund will either receive or pay an upfront payment based upon the difference between the current principal amount and the notional amount of the swap and whether the Fund is buying or selling protection. Upfront payments that are received are recorded as liabilities while upfront payments paid are recorded as assets. These payments remain on the books until the swap contract is closed. When entering into credit default swaps, the Fund will either deliver collateral to the counterparty or the counterparty will deliver collateral to the Fund. The amount of this collateral is calculated based upon the notional value and the current price of the swap. In the event of default, the Fund has recourse against any collateral posted to it by the counterparty. When entering into swap agreements as a seller, the notional amounts would be partially offset by any recovery values of the respective reference obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same reference entity. Unrealized appreciation or depreciation is recorded daily as the difference between the prior day and current day closing price.
Derivative Instruments. The Funds have adopted authoritative standards regarding disclosures about derivatives and how they affect the Funds' Statements of Assets & Liabilities and Statements of Operations.
The following is a summary of the Funds' derivative instrument holdings categorized by primary risk exposure as of December 31, 2018:
Asset Derivatives
Location on Statements of Assets & Liabilities | Value Opportunities | ||||||||||
Equity Contracts: | |||||||||||
Purchased Put Options | Long-term investments | $ | 7,140,900 |
Liability Derivatives
Location on Statements of Assets & Liabilities | Value Opportunities | ||||||||||
Foreign Exchange Contracts: | |||||||||||
Futures Contracts | Total distributable losses* | $ | 65,358 |
* Includes cumulative depreciation of futures contracts as reported in the Schedule of Futures Contracts.
71
The following is a summary of the Funds' realized gains (losses) and change in unrealized appreciation (depreciation) on derivative instruments recognized in the Statements of Operations categorized by primary risk exposure for the six months ended December 31, 2018:
Realized Gains (Losses) on Derivatives
Value Opportunities | Capital Income | High Yield | |||||||||||||
Credit Contracts: | |||||||||||||||
Credit Default Swap Contracts | $ | — | $ | 4,502 | $ | 747,303 | |||||||||
Equity Contracts: | |||||||||||||||
Purchased Put Options | — | — | — | ||||||||||||
Foreign Exchange Contracts: | |||||||||||||||
Futures Contracts | 771,226 | — | — |
Change in Unrealized Appreciation (Depreciation) on Derivatives
Value Opportunities | |||||||||||||||
Equity Contracts: | |||||||||||||||
Purchased Put Options | $ | (336,498 | )* | ||||||||||||
Foreign Exchange Contracts: | |||||||||||||||
Futures Contracts | (224,389 | ) |
* Included with net change in unrealized appreciation (depreciation) of securities of unaffiliated issuers and foreign currency transactions.
The following is a summary of the Funds' average quarterly balance of outstanding derivative instruments categorized by primary risk exposure for the six months ended December 31, 2018:
Average Quarterly Balance of Outstanding Derivatives
Value Opportunities | Capital Income | High Yield | |||||||||||||
Credit Contracts: | |||||||||||||||
Average Number of Contracts — Credit Default Swap Contracts | — | — | — | ||||||||||||
Average Notional Amount — Credit Default Swap Contracts | $ | — | $ | — | $ | — | |||||||||
Equity Contracts: | |||||||||||||||
Average Number of Contracts — Purchased Put Options | 3,447 | — | — | ||||||||||||
Average Notional Amount — Purchased Put Options | $ | 29,714,147 | $ | — | $ | — | |||||||||
Foreign Exchange Contracts: | |||||||||||||||
Average Number of Contracts — Futures Contracts | (120 | ) | — | — | |||||||||||
Average Notional Amount — Futures Contracts | $ | (12,603,671 | ) | $ | — | $ | — |
Offsetting Assets and Liabilities. The Funds are subject to various master netting arrangements, which govern the terms of certain transactions with counterparties. The arrangements allow the Funds to close out and net their total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single agreement with a counterparty. For financial reporting purposes, the Funds do not offset financial assets and liabilities that are subject to master netting arrangements in the Statements of Assets & Liabilities.
72
The following is a summary of the arrangements subject to offsetting as of December 31, 2018:
Gross Amounts Not Offset in the Statements of Assets & Liabilities | |||||||||||||||||||||||||||
Gross Amounts | Gross Amounts Offset in the Statements of Assets & Liabilities | Net Amounts Presented in the Statements of Assets & Liabilities | Financial Instruments | Collateral Pledged (Received) | Net Amount | ||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Futures Contracts: | |||||||||||||||||||||||||||
Value Opportunities | $ | 26,025 | $ | — | $ | 26,025 | $ | — | $ | 26,025 | $ | — | |||||||||||||||
Securities Lending: | |||||||||||||||||||||||||||
Small Cap Value | 24,116,823 | — | 24,116,823 | 24,116,823 | — | — | |||||||||||||||||||||
Value Opportunities | 19,733,046 | — | 19,733,046 | 19,733,046 | — | — |
NOTE 2.
Fees and Transactions with Affiliates. The Trust has entered into Investment Advisory Agreements for each of the Funds with the Advisor, with which the officers and a Trustee of the Trust are affiliated. The Advisor is a limited liability company, the primary members of which are HWCap Holdings, a limited liability company with members who are current and former employees of the Advisor, and Stephens - H&W, LLC, a limited liability company whose primary member is SF Holding Corp., which is a diversified holding company. The Advisor is responsible for the management of the Funds' investments and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund. The Advisor receives a fee, computed daily and payable monthly, at the annual rates presented below as applied to each Fund's daily net assets. The Advisor has contractually agreed to waive fees or reimburse regular operating expenses in excess of the annual rates presented below as applied to such Fund's daily net assets through August 29, 2019 (except for Class Z shares of the High Yield Fund which shall be through October 31, 2019).
Diversified Value | Large Cap Value | Mid-Cap Value | Small Cap Value | Small Cap Diversified Value | Global Value | International Value | Value Opportunities | Capital Income | High Yield | ||||||||||||||||||||||||||||||||||
Annual Advisory Fee Rate | 0.70 | %1 | 0.70 | %2 | 0.75 | %1 | 0.75 | % | 0.65 | % | 0.75 | % | 0.80 | % | 0.75 | % | 0.65 | % | 0.55 | % | |||||||||||||||||||||||
Annual cap on expenses — Class I | 0.80 | % | 0.95 | % | 1.15 | % | 1.25 | % | 0.90 | % | 0.95 | % | 0.95 | % | 1.25 | % | 0.80 | % | 0.70 | % | |||||||||||||||||||||||
Annual cap on expenses — Class A | 1.05 | % | 1.20 | % | 1.40 | % | 1.50 | % | 1.15 | % | 1.20 | % | 1.20 | % | 1.50 | % | 1.05 | % | 0.95 | % | |||||||||||||||||||||||
Annual cap on expenses — Class C | 1.80 | % | 1.95 | % | 2.15 | % | 2.25 | % | 1.90 | % | 1.95 | % | 1.95 | % | 2.25 | % | 1.80 | % | 1.70 | % | |||||||||||||||||||||||
Annual cap on expenses — Class R | N/A | 1.45 | % | 1.65 | % | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||
Annual cap on expenses — Class T | 1.05 | % | 1.20 | % | 1.40 | % | 1.50 | % | 1.15 | % | 1.20 | % | 1.20 | % | 1.50 | % | 1.05 | % | 0.95 | % | |||||||||||||||||||||||
Annual cap on expenses — Class Z | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.60 | % |
1 The Annual Advisory Fee Rate is 0.70% for the first $250 million in assets, 0.60% for the next $250 million in assets and 0.50% thereafter.
2 The Annual Advisory Fee Rate is 0.70% for the first $500 million in assets, 0.60% for the next $500 million in assets and 0.55% thereafter.
The following rates were effective prior to August 29, 2018:
Diversified Value | Large Cap Value | Global Value | International Value | ||||||||||||||||
Annual Advisory Fee Rate | 0.75 | %1 | 0.75 | %1 | 0.80 | % | 0.85 | % | |||||||||||
Annual cap on expenses — Class I | 0.95 | % | 1.05 | % | 1.10 | % | 1.15 | % | |||||||||||
Annual cap on expenses — Class A | 1.20 | % | 1.30 | % | 1.35 | % | 1.40 | % | |||||||||||
Annual cap on expenses — Class C | 1.95 | % | 2.05 | % | 2.10 | % | 2.15 | % | |||||||||||
Annual cap on expenses — Class R | N/A | 1.55 | % | N/A | N/A | ||||||||||||||
Annual cap on expenses — Class T | 1.20 | % | 1.30 | % | 1.35 | % | 1.40 | % |
1 The Annual Advisory Fee Rate is 0.75% for the first $5 billion in assets, 0.65% for the next $5 billion in assets and 0.60% for assets over $10 billion.
73
Quasar Distributors, LLC is the principal underwriter and distributor for the shares of the Funds ("Quasar" or the "Distributor"). The Distributor is affiliated with the Funds' transfer agent, fund accountant and administrator, U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services. Pursuant to the Distribution Plan adopted by the Trust in accordance with Rule 12b-1 under the 1940 Act, the Funds pay the Distributor ongoing distribution and service fees. The fees are accrued daily at the annual rates based upon the average daily net assets of the shares as follows:
Distribution and Service Fee | |||||||
Class A | 0.25 | % | |||||
Class C | 1.00 | % | |||||
Class R | 0.50 | % | |||||
Class T | 0.25 | % |
Pursuant to separate agreements with the Distributor, selected dealers and other financial intermediaries also provide distribution services to the Funds. The ongoing distribution and service fee compensates the Distributor and selected dealers for providing distribution-related and shareholder services to Class A, Class C, Class R and Class T shareholders.
Certain selected dealers and other financial intermediaries charge a fee for shareholder accounting services and administrative services that they provide to the Funds on behalf of certain shareholders; the portion of this fee paid by the Funds is included within "Transfer agent fees and expenses" in the Statements of Operations. Class Z shares are not subject to these fees.
The Funds are permitted to purchase securities from or sell securities to another Fund or affiliated person under procedures adopted by the Board. During the six months ended December 31, 2018, the Funds' purchases and sales were as follows:
Diversified Value | Large Cap Value | Mid-Cap Value | Small Cap Value | Small Cap Diversified Value | Global Value | International Value | Value Opportunities | Capital Income | High Yield | ||||||||||||||||||||||||||||||||||
Purchases | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,106,806 | |||||||||||||||||||||||
Sales | — | — | — | — | — | — | — | — | 2,111,499 | * | 696,960 | * |
* Resulted in a realized loss of $(103,539) for the Capital Income Fund and $(30,854) for the High Yield Fund.
NOTE 3.
Investments. Purchases and sales of investment securities, excluding short-term investments, for the six months ended December 31, 2018 were as follows:
Diversified Value | Large Cap Value | Mid-Cap Value | Small Cap Value | Small Cap Diversified Value | Global Value | International Value | Value Opportunities | Capital Income | High Yield | ||||||||||||||||||||||||||||||||||
Purchases | $ | 15,557,897 | $ | 87,127,369 | $ | 371,249,749 | $ | 178,758,480 | $ | 15,829,634 | $ | 1,956,617 | $ | 585,546 | $ | 263,875,402 | $ | 8,035,406 | $ | 370,406,361 | |||||||||||||||||||||||
Sales | 19,762,938 | 61,588,811 | 460,938,788 | 184,328,757 | 10,973,437 | 2,362,354 | 558,750 | 240,721,533 | 12,461,370 | 499,581,114 |
The Funds did not have any purchases or sales of U.S. Government securities for the six months ended December 31, 2018.
NOTE 4.
Federal Income Taxes. It is each Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and each Fund intends to distribute substantially all of its investment company net taxable income and net capital gains to shareholders. Therefore, no federal income tax provision is required. Under the applicable foreign tax law, a withholding tax may be imposed on interest, dividends and capital gains at various rates.
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the Funds for financial reporting purposes. The Funds may utilize earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction. Generally accepted accounting principles require that permanent financial reporting and tax differences be reclassified within the capital accounts.
74
The following information is presented on an income tax basis as of June 30, 2018:
Diversified Value | Large Cap Value | Mid-Cap Value | Small Cap Value | Small Cap Diversified Value | Global Value | International Value | Value Opportunities | Capital Income | High Yield | ||||||||||||||||||||||||||||||||||
Tax cost of investments | $ | 120,187,024 | $ | 449,297,547 | $ | 1,734,980,538 | $ | 687,088,718 | $ | 40,430,632 | $ | 8,941,972 | $ | 2,388,195 | $ | 588,113,834 | $ | 35,073,446 | $ | 2,644,512,596 | |||||||||||||||||||||||
Gross unrealized appreciation | 9,693,989 | 35,761,609 | 388,459,854 | 180,568,917 | 3,285,777 | 1,423,708 | 314,670 | 95,365,094 | 4,003,247 | 74,618,390 | |||||||||||||||||||||||||||||||||
Gross unrealized depreciation | (22,593,254 | ) | (63,499,650 | ) | (264,253,896 | ) | (81,911,162 | ) | (1,821,240 | ) | (676,372 | ) | (148,209 | ) | (51,398,339 | ) | (2,660,935 | ) | (133,396,255 | ) | |||||||||||||||||||||||
Net unrealized appreciation (depreciation) | (12,899,265 | ) | (27,738,041 | ) | 124,205,958 | 98,657,755 | 1,464,537 | 747,336 | 166,461 | 43,966,755 | 1,342,312 | (58,777,865 | ) | ||||||||||||||||||||||||||||||
Distributable ordinary income (as of 6/30/18)* | 1,280,233 | 4,631,157 | 22,954,884 | 12,816,478 | 1,505,254 | 97,340 | 35,525 | 17,161,085 | 103,595 | 3,227,839 | |||||||||||||||||||||||||||||||||
Distributable long-term gains (as of 6/30/18) | — | — | — | 23,662,245 | 1,201,356 | 391,400 | 95,885 | 27,290,250 | — | — | |||||||||||||||||||||||||||||||||
Total distributable earnings | 1,280,233 | 4,631,157 | 22,954,884 | 36,478,723 | 2,706,610 | 488,740 | 131,410 | 44,451,335 | 103,595 | 3,227,839 | |||||||||||||||||||||||||||||||||
Other accumulated losses | (28,379,656 | ) | — | (21,370,537 | ) | — | (4,100 | ) | — | — | — | (734,877 | ) | (114,441,183 | ) | ||||||||||||||||||||||||||||
Total accumulated gains (losses) | $ | (39,998,688 | ) | $ | (23,106,884 | ) | $ | 125,790,305 | $ | 135,136,478 | $ | 4,167,047 | $ | 1,236,076 | $ | 297,871 | $ | 88,418,090 | $ | 711,030 | $ | (169,991,209 | ) |
* Includes distributable short-term gains of $8,001,991 for the Mid-Cap Value Fund, $10,387,689 for the Small Cap Value Fund, $1,373,908 for the Small Cap Diversified Value Fund, $17,205 for the Global Value Fund, $5,236 for the International Value Fund and $13,818,882 for the Value Opportunities Fund.
As of the close of business on December 31, 2012, in exchange for shares the Advisor transferred assets valued at $1,132,946 to the Global Value Fund. As a result of the tax-deferred transfers, the Global Value Fund acquired $50,230 of unrealized appreciation for tax purposes. As of June 30, 2018, the Global Value Fund held securities with $17,429 of net unrealized appreciation relating to the transfers.
As of the close of business on June 30, 2014, in exchange for shares Stephens Investment Holdings LLC transferred assets valued at $5,038,896 to the Small Cap Diversified Value Fund. As a result of the tax-deferred transfers, the Small Cap Diversified Value Fund acquired $592,438 of unrealized appreciation for tax purposes. As of June 30, 2018, the Small Cap Diversified Value Fund held securities with $68,496 of net unrealized appreciation relating to the transfers.
The tax components of distributions paid during the fiscal years ended June 30, 2018 and 2017, capital loss carryovers as of June 30, 2018, and any tax basis late year losses as of June 30, 2018, which are not recognized for tax purposes until the first day of the following fiscal year, are:
June 30, 2018 | June 30, 2017 | ||||||||||||||||||||||||||||||
Ordinary Income Distributions | Long-Term Capital Gains Distributions | Net Capital Loss Carryovers | Capital Loss Carryovers Utilized | Late Year Losses | Ordinary Income Distributions | Long-Term Capital Gains Distributions | |||||||||||||||||||||||||
Diversified Value | $ | 1,972,008 | $ | — | $ | 28,379,6561 | $ | — | $ | — | $ | 6,410,766 | $ | — | |||||||||||||||||
Large Cap Value | 5,847,545 | — | — | 29,560,503 | — | 8,826,207 | — | ||||||||||||||||||||||||
Mid-Cap Value | 7,015,174 | 115,849,489 | — | — | 21,370,5374 | 15,737,440 | 17,317,177 | ||||||||||||||||||||||||
Small Cap Value | 7,785,649 | 30,558,275 | — | — | — | 2,949,850 | — | ||||||||||||||||||||||||
Small Cap Diversified Value | 1,255,591 | 2,330,107 | — | — | — | 146,812 | — | ||||||||||||||||||||||||
Global Value | 141,786 | 315,963 | — | — | — | 55,593 | — | ||||||||||||||||||||||||
International Value | 31,134 | 113,434 | — | — | — | 77,168 | — | ||||||||||||||||||||||||
Value Opportunities | 10,183,262 | 7,767,590 | — | — | — | 9,800,117 | — | ||||||||||||||||||||||||
Capital Income | 1,450,914 | — | 713,4962 | — | — | 1,484,311 | — | ||||||||||||||||||||||||
High Yield | 157,623,296 | — | 111,302,4533 | — | — | 161,613,195 | — |
1 Long-term with no expiration.
2 Short-term with no expiration.
3 $2,651,171 is short-term with no expiration and $108,651,282 is long-term with no expiration.
4 Long-term post-October loss.
As of and during the year ended June 30, 2018, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the year ended June 30, 2018, the Funds did not incur any interest or penalties. The tax years ended June 30, 2015 through June 30, 2018 remain open and subject to examination by tax jurisdictions.
75
NOTE 5.
Capital Share Transactions. Transactions in capital shares for each class were as follows:
Sales | Reinvestment of dividends and distributions | Redemptions | Net increase (decrease) | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||
Six Months Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||
Diversified Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 36,492 | $ | 661,172 | 47,595 | $ | 793,407 | (254,624 | ) | $ | (4,789,774 | ) | (170,537 | ) | $ | (3,335,195 | ) | |||||||||||||||||||
Class A | 111,947 | 2,061,941 | 11,487 | 192,296 | (141,864 | ) | (2,569,311 | ) | (18,430 | ) | (315,074 | ) | |||||||||||||||||||||||
Class C | 5,441 | 88,777 | 279 | 4,644 | (12,497 | ) | (229,037 | ) | (6,777 | ) | (135,616 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 153,880 | 2,811,890 | 59,361 | 990,347 | (408,985 | ) | (7,588,122 | ) | (195,744 | ) | (3,785,885 | ) | |||||||||||||||||||||||
Large Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 2,140,719 | 66,127,189 | 262,252 | 7,694,461 | (945,211 | ) | (30,318,986 | ) | 1,457,760 | 43,502,664 | |||||||||||||||||||||||||
Class A | 140,549 | 4,478,794 | 85,814 | 2,510,069 | (376,906 | ) | (12,385,252 | ) | (150,543 | ) | (5,396,389 | ) | |||||||||||||||||||||||
Class C | 110,040 | 3,372,555 | 6,237 | 180,130 | (58,541 | ) | (1,837,028 | ) | 57,736 | 1,715,657 | |||||||||||||||||||||||||
Class R | 13,529 | 435,932 | 1,823 | 54,002 | (29,963 | ) | (1,015,375 | ) | (14,611 | ) | (525,441 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 2,404,837 | 74,414,470 | 356,126 | 10,438,662 | (1,410,621 | ) | (45,556,641 | ) | 1,350,342 | 39,296,491 | |||||||||||||||||||||||||
Mid-Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 2,575,393 | 94,813,055 | 992,963 | 31,933,680 | (5,564,757 | ) | (191,665,009 | ) | (1,996,401 | ) | (64,918,274 | ) | |||||||||||||||||||||||
Class A | 381,149 | 13,902,581 | 92,293 | 2,920,139 | (764,034 | ) | (27,271,078 | ) | (290,592 | ) | (10,448,358 | ) | |||||||||||||||||||||||
Class C | 52,503 | 1,540,637 | 19,489 | 535,374 | (213,532 | ) | (6,460,432 | ) | (141,540 | ) | (4,384,421 | ) | |||||||||||||||||||||||
Class R | 16,561 | 591,239 | 1,255 | 39,820 | (44,271 | ) | (1,547,917 | ) | (26,455 | ) | (916,858 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 3,025,606 | 110,847,512 | 1,106,000 | 35,429,013 | (6,586,594 | ) | (226,944,436 | ) | (2,454,988 | ) | (80,667,911 | ) | |||||||||||||||||||||||
Small Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 2,189,370 | 130,187,791 | 585,859 | 29,544,854 | (1,505,438 | ) | (88,703,765 | ) | 1,269,791 | 71,028,880 | |||||||||||||||||||||||||
Class A | 124,756 | 7,033,872 | 50,148 | 2,518,416 | (333,008 | ) | (19,211,506 | ) | (158,104 | ) | (9,659,218 | ) | |||||||||||||||||||||||
Class C | 5,860 | 251,822 | 18,263 | 746,424 | (47,996 | ) | (2,332,860 | ) | (23,873 | ) | (1,334,614 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 2,319,986 | 137,473,485 | 654,270 | 32,809,694 | (1,886,442 | ) | (110,248,131 | ) | 1,087,814 | 60,035,048 | |||||||||||||||||||||||||
Small Cap Diversified Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 1,413,118 | 14,184,504 | 311,362 | 2,939,253 | (836,609 | ) | (9,337,994 | ) | 887,871 | 7,785,763 | |||||||||||||||||||||||||
Class A | 211,285 | 2,547,277 | 25,056 | 235,526 | (199,706 | ) | (2,163,604 | ) | 36,635 | 619,199 | |||||||||||||||||||||||||
Total net increase (decrease) | 1,624,403 | 16,731,781 | 336,418 | 3,174,779 | (1,036,315 | ) | (11,501,598 | ) | 924,506 | 8,404,962 | |||||||||||||||||||||||||
Global Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 6,902 | 92,713 | 67,154 | 703,103 | (13,165 | ) | (139,575 | ) | 60,891 | 656,241 | |||||||||||||||||||||||||
Class A | 3,735 | 46,000 | 2,046 | 21,466 | (36,156 | ) | (463,113 | ) | (30,375 | ) | (395,647 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 10,637 | 138,713 | 69,200 | 724,569 | (49,321 | ) | (602,688 | ) | 30,516 | 260,594 | |||||||||||||||||||||||||
International Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 1,666 | 18,375 | 17,096 | 158,651 | — | — | 18,762 | 177,026 | |||||||||||||||||||||||||||
Total net increase | 1,666 | 18,375 | 17,096 | 158,651 | — | — | 18,762 | 177,026 | |||||||||||||||||||||||||||
Value Opportunities Fund | |||||||||||||||||||||||||||||||||||
Class I | 3,930,174 | 112,620,225 | 1,402,218 | 34,817,068 | (2,763,605 | ) | (72,918,796 | ) | 2,568,787 | 74,518,497 | |||||||||||||||||||||||||
Class A | 1,033,170 | 28,092,237 | 334,897 | 8,338,932 | (996,106 | ) | (28,561,498 | ) | 371,961 | 7,869,671 | |||||||||||||||||||||||||
Class C | 210,048 | 5,355,662 | 141,075 | 3,253,197 | (249,266 | ) | (6,442,802 | ) | 101,857 | 2,166,057 | |||||||||||||||||||||||||
Total net increase (decrease) | 5,173,392 | 146,068,124 | 1,878,190 | 46,409,197 | (4,008,977 | ) | (107,923,096 | ) | 3,042,605 | 84,554,225 | |||||||||||||||||||||||||
Capital Income Fund | |||||||||||||||||||||||||||||||||||
Class I | 203,958 | 2,621,190 | 21,729 | 267,863 | (511,185 | ) | (6,297,185 | ) | (285,498 | ) | (3,408,132 | ) | |||||||||||||||||||||||
Class A | 51,700 | 659,098 | 14,484 | 185,209 | (138,131 | ) | (1,776,371 | ) | (71,947 | ) | (932,064 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 255,658 | 3,280,288 | 36,213 | 453,072 | (649,316 | ) | (8,073,556 | ) | (357,445 | ) | (4,340,196 | ) |
76
Sales | Reinvestment of dividends and distributions | Redemptions | Net increase (decrease) | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||
Six Months Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||
High Yield Fund | |||||||||||||||||||||||||||||||||||
Class I | 23,763,923 | $ | 280,126,196 | 4,281,588 | $ | 50,062,092 | (44,763,048 | ) | $ | (519,661,934 | )1 | (16,717,537 | ) | $ | (189,473,646 | ) | |||||||||||||||||||
Class A | 1,501,111 | 17,713,483 | 1,116,707 | 12,982,038 | (4,773,409 | ) | (54,942,918 | )1 | (2,155,591 | ) | (24,247,397 | ) | |||||||||||||||||||||||
Class C | 11,386 | 130,879 | 5,357 | 62,566 | (26,750 | ) | (314,186 | ) | (10,007 | ) | (120,741 | ) | |||||||||||||||||||||||
Class Z | 4,512,461 | 53,572,828 | 175,421 | 2,049,647 | (1,566,762 | ) | (18,507,190 | ) | 3,121,120 | 37,115,285 | |||||||||||||||||||||||||
Total net increase (decrease) | 29,788,881 | 351,543,386 | 5,579,073 | 65,156,343 | (51,129,969 | ) | (593,426,228 | ) | (15,762,015 | ) | (176,726,499 | ) | |||||||||||||||||||||||
Year Ended June 30, 2018 | |||||||||||||||||||||||||||||||||||
Diversified Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 158,259 | 2,894,320 | 65,134 | 1,195,866 | (657,010 | ) | (12,209,082 | ) | (433,617 | ) | (8,118,896 | ) | |||||||||||||||||||||||
Class A | 48,074 | 876,199 | 15,357 | 283,178 | (313,602 | ) | (5,776,170 | ) | (250,171 | ) | (4,616,793 | ) | |||||||||||||||||||||||
Class C | 21,522 | 394,838 | 923 | 16,885 | (46,209 | ) | (859,345 | ) | (23,764 | ) | (447,622 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 227,855 | 4,165,357 | 81,414 | 1,495,929 | (1,016,821 | ) | (18,844,597 | ) | (707,552 | ) | (13,183,311 | ) | |||||||||||||||||||||||
Large Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 2,979,791 | 100,588,501 | 99,918 | 3,269,329 | (3,519,093 | ) | (114,686,179 | ) | (439,384 | ) | (10,828,349 | ) | |||||||||||||||||||||||
Class A | 452,316 | 14,768,834 | 47,404 | 1,543,005 | (952,247 | ) | (31,125,175 | ) | (452,527 | ) | (14,813,336 | ) | |||||||||||||||||||||||
Class C | 44,840 | 1,422,878 | 1,739 | 55,671 | (185,128 | ) | (5,888,577 | ) | (138,549 | ) | (4,410,028 | ) | |||||||||||||||||||||||
Class R | 40,901 | 1,335,321 | 1,733 | 56,845 | (274,012 | ) | (8,842,319 | ) | (231,378 | ) | (7,450,153 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 3,517,848 | 118,115,534 | 150,794 | 4,924,850 | (4,930,480 | ) | (160,542,250 | ) | (1,261,838 | ) | (37,501,866 | ) | |||||||||||||||||||||||
Mid-Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 5,359,663 | 204,455,967 | 2,597,067 | 93,987,859 | (12,538,664 | ) | (475,379,489 | ) | (4,581,934 | ) | (176,935,663 | ) | |||||||||||||||||||||||
Class A | 826,747 | 30,841,562 | 285,594 | 10,181,425 | (2,731,375 | ) | (102,165,358 | ) | (1,619,034 | ) | (61,142,371 | ) | |||||||||||||||||||||||
Class C | 58,509 | 1,886,168 | 79,737 | 2,481,427 | (546,107 | ) | (17,827,337 | ) | (407,861 | ) | (13,459,742 | ) | |||||||||||||||||||||||
Class R | 49,700 | 1,838,661 | 9,440 | 336,912 | (189,676 | ) | (7,175,195 | ) | (130,536 | ) | (4,999,622 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 6,294,619 | 239,022,358 | 2,971,838 | 106,987,623 | (16,005,822 | ) | (602,547,379 | ) | (6,739,365 | ) | (256,537,398 | ) | |||||||||||||||||||||||
Small Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 1,908,065 | 115,867,183 | 352,439 | 20,726,931 | (2,359,930 | ) | (143,981,605 | ) | (99,426 | ) | (7,387,491 | ) | |||||||||||||||||||||||
Class A | 189,657 | 11,366,706 | 33,531 | 1,962,240 | (629,826 | ) | (38,203,675 | ) | (406,638 | ) | (24,874,729 | ) | |||||||||||||||||||||||
Class C | 8,406 | 420,678 | 12,314 | 600,049 | (102,576 | ) | (5,173,595 | ) | (81,856 | ) | (4,152,868 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 2,106,128 | 127,654,567 | 398,284 | 23,289,220 | (3,092,332 | ) | (187,358,875 | ) | (587,920 | ) | (36,415,088 | ) | |||||||||||||||||||||||
Small Cap Diversified Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 1,442,922 | 17,769,109 | 302,587 | 3,404,099 | (55,350 | ) | (652,882 | ) | 1,690,159 | 20,520,326 | |||||||||||||||||||||||||
Class A | 227,730 | 2,778,889 | 15,788 | 176,823 | (70,064 | ) | (829,798 | ) | 173,454 | 2,125,914 | |||||||||||||||||||||||||
Total net increase (decrease) | 1,670,652 | 20,547,998 | 318,375 | 3,580,922 | (125,414 | ) | (1,482,680 | ) | 1,863,613 | 22,646,240 | |||||||||||||||||||||||||
Global Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 49,087 | 660,967 | 33,882 | 432,679 | (7,720 | ) | (103,218 | ) | 75,249 | 990,428 | |||||||||||||||||||||||||
Class A | 43,606 | 579,945 | 1,965 | 25,070 | (24,499 | ) | (326,866 | ) | 21,072 | 278,149 | |||||||||||||||||||||||||
Total net increase (decrease) | 92,693 | 1,240,912 | 35,847 | 457,749 | (32,219 | ) | (430,084 | ) | 96,321 | 1,268,577 | |||||||||||||||||||||||||
International Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 3,000 | 36,374 | 12,356 | 144,568 | — | — | 15,356 | 180,942 | |||||||||||||||||||||||||||
Total net increase | 3,000 | 36,374 | 12,356 | 144,568 | — | — | 15,356 | 180,942 |
77
Sales | Reinvestment of dividends and distributions | Redemptions | Net increase (decrease) | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | |||||||||||||||||||||||||||||||||||
Value Opportunities Fund | |||||||||||||||||||||||||||||||||||
Class I | 4,807,140 | $ | 140,856,785 | 330,329 | $ | 9,424,295 | (2,652,597 | ) | $ | (79,269,451 | ) | 2,484,872 | $ | 71,011,629 | |||||||||||||||||||||
Class A | 997,225 | 29,301,165 | 103,459 | 2,957,879 | (1,492,259 | ) | (43,639,405 | ) | (391,575 | ) | (11,380,361 | ) | |||||||||||||||||||||||
Class C | 126,468 | 3,448,265 | 35,417 | 943,875 | (629,312 | ) | (17,060,721 | ) | (467,427 | ) | (12,668,581 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 5,930,833 | 173,606,215 | 469,205 | 13,326,049 | (4,774,168 | ) | (139,969,577 | ) | 1,625,870 | 46,962,687 | |||||||||||||||||||||||||
Capital Income Fund | |||||||||||||||||||||||||||||||||||
Class I | 534,542 | 6,800,460 | 47,650 | 603,069 | (668,387 | ) | (8,492,631 | ) | (86,195 | ) | (1,089,102 | ) | |||||||||||||||||||||||
Class A | 255,525 | 3,353,937 | 39,003 | 513,024 | (663,362 | ) | (8,681,792 | ) | (368,834 | ) | (4,814,831 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 790,067 | 10,154,397 | 86,653 | 1,116,093 | (1,331,749 | ) | (17,174,423 | ) | (455,029 | ) | (5,903,933 | ) | |||||||||||||||||||||||
High Yield Fund | |||||||||||||||||||||||||||||||||||
Class I | 54,281,965 | 662,131,795 | 7,909,848 | 96,192,964 | (71,502,544 | ) | (863,414,446 | )2 | (9,310,731 | ) | (105,089,687 | ) | |||||||||||||||||||||||
Class A | 4,403,302 | 53,523,767 | 2,291,302 | 27,709,530 | (13,728,851 | ) | (166,831,745 | )2 | (7,034,247 | ) | (85,598,448 | ) | |||||||||||||||||||||||
Class C | 118,822 | 1,458,091 | 8,896 | 107,978 | (89,106 | ) | (1,088,904 | )2 | 38,612 | 477,165 | |||||||||||||||||||||||||
Class Z | 27,668,304 | 330,543,054 | 38,445 | 458,459 | (86,935 | ) | (1,037,100 | ) | 27,619,814 | 329,964,413 | |||||||||||||||||||||||||
Total net increase (decrease) | 86,472,393 | 1,047,656,707 | 10,248,491 | 124,468,931 | (85,407,436 | ) | (1,032,372,195 | ) | 11,313,448 | 139,753,443 |
1 Net of redemption fees of $54,256 for Class I and $5,145 for Class A.
2 Net of redemption fees of $119,313 for Class I, $241,463 for Class A and $49 for Class C.
NOTE 6.
Investments in Affiliated Issuers. An issuer in which a Fund's holdings represent 5% or more of the outstanding voting securities of the issuer is an "affiliated" issuer as defined in the 1940 Act. A schedule of each Fund's investments in securities of affiliated issuers held during the six months ended December 31, 2018, is set forth below:
Mid-Cap Value Fund
Issuer Name | Value at July 1, 2018 | Purchases | Sales | Net Realized Gains (Losses) | Net Change in Unrealized Appreciation (Depreciation) | Value at December 31, 2018 | Dividends | ||||||||||||||||||||||||
Ophir Energy PLC | $ | 37,708,315 | $ | — | $ | — | $ | — | $ | (11,963,098 | ) | $ | 25,745,217 | $ | — | ||||||||||||||||
$ | 37,708,315 | $ | — | $ | — | $ | — | $ | (11,963,098 | ) | $ | 25,745,217 | $ | — |
Small Cap Value Fund
Issuer Name | Value at July 1, 2018 | Purchases | Sales | Net Realized Gains (Losses) | Net Change in Unrealized Appreciation (Depreciation) | Value at December 31, 2018 | Dividends | ||||||||||||||||||||||||
Hudson Global, Inc. | $ | 3,543,912 | $ | — | $ | — | $ | — | $ | (590,652 | ) | $ | 2,953,260 | $ | — | ||||||||||||||||
Noranda Aluminum Holding Corp. | 24,569 | — | — | — | (11,364 | ) | 13,205 | — | |||||||||||||||||||||||
$ | 3,568,481 | $ | — | $ | — | $ | — | $ | (602,016 | ) | $ | 2,966,465 | $ | — |
78
Value Opportunities Fund
Issuer Name | Value at July 1, 2018 | Purchases | Sales | Net Realized Gains (Losses) | Net Change in Unrealized Appreciation (Depreciation) | Value at December 31, 2018 | Dividends | ||||||||||||||||||||||||
GHW Holdco LLC+ | $ | 2,009,120 | $ | — | $ | (5,607,000 | ) | $ | 4,794,001 | $ | (1,196,121 | ) | $ | — | $ | 400,500 | |||||||||||||||
Iracore Investments Holdings, Inc. | 6,892,269 | — | — | — | — | 6,892,269 | — | ||||||||||||||||||||||||
Motors Liquidation Company GUC Trust | 16,078,834 | — | — | — | (1,389,779 | ) | 14,689,055 | — | |||||||||||||||||||||||
$ | 24,980,223 | $ | — | $ | (5,607,000 | ) | $ | 4,794,001 | $ | (2,585,900 | ) | $ | 21,581,324 | $ | 400,500 |
+ Issuer was not an affiliate as of December 31, 2018.
High Yield Fund
Issuer Name | Value at July 1, 2018 | Purchases | Sales | Net Realized Gains (Losses) | Net Change in Unrealized Appreciation (Depreciation) | Value at December 31, 2018 | Dividends | ||||||||||||||||||||||||
American Zinc Recycling LLC | $ | 30,319,984 | $ | — | $ | — | $ | — | $ | 3,832,137 | $ | 34,152,121 | $ | — | |||||||||||||||||
GHW Holdco LLC+ | 1,339,581 | — | (3,738,000 | ) | 3,196,001 | (797,582 | ) | — | 267,000 | ||||||||||||||||||||||
Iracore Investments Holdings, Inc. | 4,696,318 | — | — | — | — | 4,696,318 | — | ||||||||||||||||||||||||
RA Parent, Inc. | 11,731,221 | — | — | — | — | 11,731,221 | — | ||||||||||||||||||||||||
$ | 48,087,104 | $ | — | $ | (3,738,000 | ) | $ | 3,196,001 | $ | 3,034,555 | $ | 50,579,660 | $ | 267,000 |
+ Issuer was not an affiliate as of December 31, 2018.
NOTE 7.
Securities Lending. Effective December 2007, the Funds entered into a securities lending arrangement with Brown Brothers Harriman & Co. (the "Custodian"). Under the securities lending agreement, the Custodian is authorized to loan securities on behalf of the Funds to approved brokers. In exchange, the Funds receive cash collateral in the amount of at least 102% of the value of the securities loaned plus accrued interest. The total market value of securities on loan for each Fund is disclosed on the Schedule of Investments. The cash collateral is invested in short-term instruments as noted on the Schedule of Investments. Income earned from these investments is included in "Securities on loan, net" on the Statements of Operations and is allocated to each Fund based on each Fund's proportion of the total cash collateral received. Securities lending involves counterparty risks, including the risk that the loaned securities may not be returned in a timely manner or at all. Subject to certain conditions, the Custodian has agreed to indemnify the Funds from losses resulting from a borrower's failure to return a loaned security. In addition, the Funds bear the risk of loss associated with the investment of cash collateral received.
A portion of the income generated by the investment of the collateral, net of any rebates paid by the Custodian to borrowers, is remitted to the Custodian as lending agent, and the remainder is paid to the applicable Fund.
NOTE 8.
Commitments and Contingencies. Under the Trust's organizational documents and indemnification agreements between each independent Trustee and the Trust, its officers and Trustees are indemnified against certain liability arising out of the performance of their duties to the Trust. In addition, in the normal course of business the Trust enters into contracts that contain a variety of representations and warranties, which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect the risk of loss to be remote.
Bridge loan commitments may obligate a Fund to furnish temporary financing to a borrower until permanent financing can be arranged. At December 31, 2018, the Funds did not have any outstanding bridge loan commitments.
Unfunded loan commitments are contractual obligations for funding to a borrower. At December 31, 2018, the Funds did not have any outstanding unfunded loan commitments.
NOTE 9.
Risk Factors. Investing in a Fund may involve certain risks including, but not limited to, those described below.
Lower rated debt securities generally have higher rates of interest and involve greater risk of default or price changes due to changes in the issuer's creditworthiness than higher rated debt securities. The market prices of these securities may fluctuate more than higher quality securities and may decline significantly in periods of general economic difficulty. There may be little trading in the secondary market for particular debt securities, which may make them more difficult to value or sell.
79
The prices of, and the income generated by, most debt securities held by a Fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities. For example, the prices of debt securities in a Fund's portfolio generally will decline when interest rates rise and increase when interest rates fall. In addition, falling interest rates may cause an issuer to redeem, "call" or refinance a security before its stated maturity, which may result in the Fund having to reinvest the proceeds in lower yielding securities. Debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Longer maturity debt securities generally have higher rates of interest and may be subject to greater price fluctuations than shorter maturity debt securities.
Certain Funds may invest in foreign (non-U.S.) securities and may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies. The securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. Additionally, reporting, accounting and auditing standards of foreign countries differ, in some cases significantly, from U.S. standards. Also, nationalization, expropriation or confiscatory taxation, currency blockage, political changes or diplomatic developments could adversely affect a Fund's investments in a foreign country.
The Funds are subject to management risk because each Fund is an actively managed investment portfolio. Consequently, the Funds are subject to the risks that the methods and analysis employed by the Advisor may not produce the desired results and result in losses to the Funds.
The prices of, and the income generated by, the common stocks and other equity securities held by a Fund may decline in response to certain events taking place around the world, including those directly involving the issuers whose securities are owned by the Fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency, interest rate and commodity price fluctuations.
Certain funds, accounts, individuals or affiliates may from time to time own (beneficially or of record) or control a significant percentage of a Fund's shares. Redemptions by these entities of their holdings in the Fund may impact the Fund's liquidity and net asset value ("NAV"). These redemptions may also force the Fund to sell securities.
NOTE 10.
New Accounting Pronouncements. In March 2017, the FASB issued Accounting Standards Update ("ASU") No. 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount, which continues to be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management is currently evaluating the impact, if any, of applying this provision.
In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement. The primary focus of ASU No. 2018-13 is to improve the effectiveness of the disclosure requirements for fair value measurements. In general, the amendments in ASU No. 2018-13 are effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. An entity is permitted to early adopt upon the issuance of ASU No. 2018-13. Management has implemented the amendments and there was no material impact on the Funds' financial statements.
Regulatory Changes. In August 2018, the Securities and Exchange Commission ("Commission") issued Final Rule Release No. 33-10532, Disclosure Update and Simplification, which in part amends certain disclosure requirements of Regulation S-X that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other Commission disclosure requirements, U.S. GAAP, or changes in the information environment. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. The effective date for these disclosures was November 5, 2018. Management has implemented the amendments and there was no material impact on the Funds' financial statements.
NOTE 11.
Subsequent Events. Management has evaluated subsequent events in the preparation of the Funds' financial statements and has determined that there are no events that require recognition or disclosure in the financial statements.
NOTE 12.
Federal Tax Disclosure. The Funds designated as long-term capital gain dividends, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds related to net capital gains to zero for the tax year ended June 30, 2018.
For the year ended June 30, 2018, the following percentages of ordinary distributions paid qualify for the dividend received deduction available to corporate shareholders: Diversified Value Fund — 100.00%, Large Cap Value Fund — 100.00%, Mid-Cap Value Fund — 65.47%, Small Cap Value Fund — 59.61%, Small Cap Diversified Value Fund — 27.50%, Global Value Fund — 49.19%, International Value Fund — 0.00%, Value Opportunities Fund — 50.12%, Capital Income Fund — 13.90%, High Yield Fund — 1.13%.
For the year ended June 30, 2018, the following percentages of ordinary distributions paid are designated as qualified dividend income under the Jobs and Growth Tax Relief Reconciliation Act of 2003: Diversified Value Fund — 100.00%, Large Cap Value Fund — 100.00%, Mid-Cap Value Fund — 75.78%, Small Cap Value Fund — 59.61%, Small Cap Diversified Value Fund — 28.44%, Global Value Fund — 94.84%, International Value Fund — 100.00%, Value Opportunities Fund — 64.78%, Capital Income Fund — 27.99%, High Yield Fund — 1.13%. Shareholders should consult their tax advisors.
For the year ended June 30, 2018, the Global Value Fund and International Value Fund earned foreign source income of $117,043 and $57,146, respectively, and paid foreign taxes of $9,173 and $4,666, respectively, which each Fund intends to pass through to shareholders pursuant to Section 853 of the Internal Revenue Code.
80
Additional Information Applicable to Foreign Shareholders Only. For the year ended June 30, 2018, the Funds designate the following percentages of ordinary distributions paid as interest-related dividends under Internal Revenue Code Section 871(k)(1)(c): Diversified Value Fund — 0.09%, Large Cap Value Fund — 0.12%, Mid-Cap Value Fund — 0.51%, Small Cap Value Fund — 0.24%, Small Cap Diversified Value Fund — 0.22%, Global Value Fund — 0.31%, International Value Fund — 0.29%, Value Opportunities Fund — 18.93%, Capital Income Fund — 63.54%, High Yield Fund — 95.13%.
For the year ended June 30, 2018, the following percentages of ordinary income distributions paid are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(c): Diversified Value Fund — 0.00%, Large Cap Value Fund — 0.00%, Mid-Cap Value Fund — 5.84%, Small Cap Value Fund — 58.37%, Small Cap Diversified Value Fund — 91.99%, Global Value Fund — 40.90%, International Value Fund — 15.65%, Value Opportunities Fund — 4.97%, Capital Income Fund — 0.00%, High Yield Fund — 0.00%.
81
Fund Expense Examples (Unaudited)
As a mutual fund shareholder, you incur two types of costs: (1) transaction costs such as initial sales charges (loads) on purchase payments and contingent deferred sales charges and redemption fees on redemptions and (2) ongoing costs, including management fees, distribution and service (12b-1) fees and other fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested at the beginning of the most recent six-month period and held for the entire period (July 1, 2018 – December 31, 2018).
The table below illustrates the Funds' costs in two ways:
Based on actual fund returns. This section provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Based on hypothetical 5% yearly returns. This section provides information about hypothetical account values and hypothetical expenses based on the Funds' actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second section is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
Based on Actual Fund Returns | Based on Hypothetical 5% Yearly Returns | ||||||||||||||||||||||||||||||
Beginning Account Value 7/1/18 | Ending Account Value 12/31/18 | Expenses Paid During Period* 7/1/18 - 12/31/18 | Beginning Account Value 7/1/18 | Ending Account Value 12/31/18 | Expenses Paid During Period* 7/1/18 - 12/31/18 | Annualized Expense Ratio | |||||||||||||||||||||||||
Diversified Value Fund | |||||||||||||||||||||||||||||||
Class I | $ | 1,000.00 | $ | 854.40 | $ | 3.97 | $ | 1,000.00 | $ | 1,020.92 | $ | 4.33 | 0.85 | % | |||||||||||||||||
Class A | 1,000.00 | 853.40 | 5.14 | 1,000.00 | 1,019.66 | 5.60 | 1.10 | ||||||||||||||||||||||||
Class C | 1,000.00 | 849.50 | 8.62 | 1,000.00 | 1,015.88 | 9.40 | 1.85 | ||||||||||||||||||||||||
Large Cap Value Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 858.50 | 4.50 | 1,000.00 | 1,020.37 | 4.89 | 0.96 | ||||||||||||||||||||||||
Class A | 1,000.00 | 857.40 | 5.66 | 1,000.00 | 1,019.11 | 6.16 | 1.21 | ||||||||||||||||||||||||
Class C | 1,000.00 | 854.20 | 9.16 | 1,000.00 | 1,015.32 | 9.96 | 1.96 | ||||||||||||||||||||||||
Class R | 1,000.00 | 856.30 | 6.83 | 1,000.00 | 1,017.85 | 7.43 | 1.46 | ||||||||||||||||||||||||
Mid-Cap Value Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 764.40 | 4.49 | 1,000.00 | 1,020.11 | 5.14 | 1.01 | ||||||||||||||||||||||||
Class A | 1,000.00 | 763.40 | 5.60 | 1,000.00 | 1,018.85 | 6.41 | 1.26 | ||||||||||||||||||||||||
Class C | 1,000.00 | 760.40 | 8.92 | 1,000.00 | 1,015.07 | 10.21 | 2.01 | ||||||||||||||||||||||||
Class R | 1,000.00 | 762.60 | 6.71 | 1,000.00 | 1,017.59 | 7.68 | 1.51 | ||||||||||||||||||||||||
Small Cap Value Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 804.40 | 4.68 | 1,000.00 | 1,020.01 | 5.24 | 1.03 | ||||||||||||||||||||||||
Class A | 1,000.00 | 803.30 | 5.82 | 1,000.00 | 1,018.75 | 6.51 | 1.28 | ||||||||||||||||||||||||
Class C | 1,000.00 | 800.40 | 9.21 | 1,000.00 | 1,014.97 | 10.31 | 2.03 | ||||||||||||||||||||||||
Small Cap Diversified Value Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 804.10 | 4.09 | 1,000.00 | 1,020.67 | 4.58 | 0.90 | ||||||||||||||||||||||||
Class A | 1,000.00 | 803.40 | 5.23 | 1,000.00 | 1,019.41 | 5.85 | 1.15 | ||||||||||||||||||||||||
Global Value Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 827.00 | 4.61 | 1,000.00 | 1,020.16 | 5.09 | 1.00 | ||||||||||||||||||||||||
Class A | 1,000.00 | 825.50 | 5.75 | 1,000.00 | 1,018.90 | 6.36 | 1.25 | ||||||||||||||||||||||||
International Value Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 837.90 | 4.73 | 1,000.00 | 1,020.06 | 5.19 | 1.02 |
82
Fund Expense Examples (Unaudited)
Based on Actual Fund Returns | Based on Hypothetical 5% Yearly Returns | ||||||||||||||||||||||||||||||
Beginning Account Value 7/1/18 | Ending Account Value 12/31/18 | Expenses Paid During Period* 7/1/18 - 12/31/18 | Beginning Account Value 7/1/18 | Ending Account Value 12/31/18 | Expenses Paid During Period* 7/1/18 - 12/31/18 | Annualized Expense Ratio | |||||||||||||||||||||||||
Value Opportunities Fund | |||||||||||||||||||||||||||||||
Class I | $ | 1,000.00 | $ | 862.20 | $ | 4.51 | $ | 1,000.00 | $ | 1,020.37 | $ | 4.89 | 0.96 | ||||||||||||||||||
Class A | 1,000.00 | 861.20 | 5.68 | 1,000.00 | 1,019.11 | 6.16 | 1.21 | ||||||||||||||||||||||||
Class C | 1,000.00 | 858.00 | 9.18 | 1,000.00 | 1,015.32 | 9.96 | 1.96 | ||||||||||||||||||||||||
Capital Income Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 866.40 | 3.76 | 1,000.00 | 1,021.17 | 4.08 | 0.80 | ||||||||||||||||||||||||
Class A | 1,000.00 | 866.80 | 4.94 | 1,000.00 | 1,019.91 | 5.35 | 1.05 | ||||||||||||||||||||||||
High Yield Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 966.30 | 3.47 | 1,000.00 | 1,021.68 | 3.57 | 0.70 | ||||||||||||||||||||||||
Class A | 1,000.00 | 964.70 | 4.70 | 1,000.00 | 1,020.42 | 4.84 | 0.95 | ||||||||||||||||||||||||
Class C | 1,000.00 | 961.40 | 8.40 | 1,000.00 | 1,016.64 | 8.64 | 1.70 | ||||||||||||||||||||||||
Class Z | 1,000.00 | 966.80 | 2.97 | 1,000.00 | 1,022.18 | 3.06 | 0.60 |
* Expenses are equal to the Funds' annualized expense ratio by class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (184), then divided by the number of days in the most recent fiscal year (365).
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Information about the Funds
ADVISOR
Hotchkis & Wiley Capital Management, LLC
725 South Figueroa Street, 39th Floor
Los Angeles, California 90017
LEGAL COUNSEL
Vedder Price P.C.
222 North LaSalle Street
Chicago, Illinois 60601
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
555 West 5th Street
Los Angeles, California 90013
DISTRIBUTOR
Quasar Distributors, LLC
777 East Wisconsin Avenue, 6th Floor
Milwaukee, Wisconsin 53202
ADMINISTRATOR AND TRANSFER AGENT
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
CUSTODIAN
Brown Brothers Harriman & Co.
50 Post Office Square
Boston, Massachusetts 02110
This report is for the information of shareholders of the Hotchkis & Wiley Funds, but may also be used as sales literature when preceded or accompanied by a current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the Funds.
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is included in the Statement of Additional Information, which is available without charge, upon request, by calling 1-866-HW-FUNDS (1-866-493-8637) and on the Securities and Exchange Commission's ("SEC") website at http://www.sec.gov.
Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Funds' website at www.hwcm.com and on the SEC's website at http://www.sec.gov.
Hotchkis & Wiley Funds files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Funds' Forms N-PORT are available free of charge on the SEC's website at http://www.sec.gov. You may also review or, for a fee, copy the forms at the SEC's Public Reference Room in Washington, D.C. (1-800-SEC-0330). The Forms N-PORT are also available on the Funds' website at www.hwcm.com.
725 SOUTH FIGUEROA STREET, 39th Floor
LOS ANGELES, CALIFORNIA 90017-5439
www.hwcm.com
1.866.HW.FUNDS (1.866.493.8637)
CODE #HWF-SAR-1218-0219
DECEMBER 31, 2018
SEMI-ANNUAL REPORT
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.
Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
The identification and recommendation of individuals for Board membership is the responsibility of the Nominating and Governance Committee. Shareholders may submit suggestions for candidates by forwarding their correspondence by U.S. mail or other courier service to the registrant’s Secretary for the attention of the Chairman of the Nominating and Governance Committee, 725 South Figueroa Street, 39th Floor, Los Angeles, CA 90017-5439.
Item 11. Controls and Procedures.
(a) The registrant’s President / Principal Executive Officer and Treasurer / Principal Financial Officer have reviewed the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the registrant and by the registrant’s service provider.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 13. Exhibits.
(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.
(2) A separate certification for each principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.
(4) Change in the registrant’s independent public accountant. There was no change in the registrant’s independent public accountant for the period covered by this report.
(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) | Hotchkis & Wiley Funds |
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By (Signature and Title) | /s/ Anna Marie Lopez |
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| Anna Marie Lopez, President / Principal Executive Officer | |||
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Date | 2/25/19 |
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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/ Anna Marie Lopez |
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| Anna Marie Lopez, President / Principal Executive Officer | ||
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Date | 2/25/19 |
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By (Signature and Title) | /s/ James Menvielle |
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| James Menvielle, Treasurer / Principal Financial Officer | ||
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Date | 2/25/19 |
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