UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21422
Trust for Advised Portfolios
(Exact name of registrant as specified in charter)
(Exact name of registrant as specified in charter)
615 East Michigan Street
Milwaukee, Wisconsin 53202
(Address of principal executive offices) (Zip code)
(Address of principal executive offices) (Zip code)
Christopher E. Kashmerick
Trust for Advised Portfolios
777 East Wisconsin Avenue, 10th Floor
Milwaukee, Wisconsin 53202
(Name and address of agent for service)
(Name and address of agent for service)
(626) 914-7385
Registrant's telephone number, including area code
Date of fiscal year end: September 30
Date of reporting period: March 31, 2021
Item 1. Reports to Stockholders.
![](https://capedge.com/proxy/N-CSRSA/0000894189-22-000153/image0.jpg)
ZIEGLER SENIOR FLOATING RATE FUND
− | CLASS A (ZFLAX) |
− | CLASS C (ZFLCX) |
− | INSTITUTIONAL CLASS (ZFLIX) |
ZIEGLER PIERMONT SMALL CAP VALUE FUND
− | INSTITUTIONAL CLASS (ZPSCX) |
ZIEGLER FAMCO HEDGED EQUITY FUND
− | INSTITUTIONAL CLASS (SHLDX) |
SEMI-ANNUAL REPORT TO SHAREHOLDERS
March 31, 2021
Important Notice: The U.S. Securities and Exchange Commission will permit funds to make shareholder reports available electronically beginning January 1, 2021. Accordingly, paper copies will no longer be mailed. Instead, at that time, the Ziegler Funds will send a notice, either by mail or e-mail, each time an updated report is available on the Funds’ website (www.zieglercapfunds.com). Investors enrolled in electronic delivery will receive the notices by e-mail, with links to the updated report and will not need to take any action. Investors who are not enrolled in electronic delivery by January 1, 2021 will receive the notices in the mail.
All investors who prefer to receive shareholder reports in a printed format may, at any time, choose that option free of charge. Contact your financial intermediary to make this election, or direct investors can call 1-833-777-1533.
www.zieglercapfunds.com
Table of Contents
Ziegler Senior Floating Rate Fund | |
Shareholder Letter | 1 |
Allocation of Portfolio Holdings | 3 |
Schedule of Investments | 4 |
Statement of Assets and Liabilities | 10 |
Statement of Operations | 11 |
Statements of Changes in Net Assets | 12 |
Financial Highlights | 13 |
Ziegler Piermont Small Cap Value Fund | |
Shareholder Letter | 16 |
Allocation of Portfolio Holdings | 18 |
Schedule of Investments | 19 |
Statement of Assets and Liabilities | 25 |
Statement of Operations | 26 |
Statement of Changes in Net Assets | 27 |
Financial Highlights | 28 |
Ziegler FAMCO Hedged Equity Fund | |
Shareholder Letter | 29 |
Allocation of Portfolio Holdings | 32 |
Schedule of Investments | 33 |
Statement of Assets and Liabilities | 43 |
Statement of Operations | 44 |
Statement of Changes in Net Assets | 45 |
Financial Highlights | 46 |
Notes to Financial Statements | 47 |
Expense Example | 56 |
Approval of Investment Advisory Agreement | 58 |
Other Information | 59 |
Privacy Notice | 60 |
Ziegler Senior Floating Rate Fund
Semi-Annual Period Ending March 31, 2021
Dear Investor:
We are pleased to present you with the Semi-Annual Report of Ziegler Senior Floating Rate Fund (the “Fund”) for the six-month period ended March 31, 2021.
During the reporting period, the Fund’s total return was 3.96% for Institutional shares, 3.45% for Class C shares, and 3.82% for Class A shares without the sales charge. The Credit Suisse Leveraged Loan Index’s total return was up 5.72%, during the same period.
Market Environment
Bank loan performance continued to recover from the economic shut down that occurred in the first half of 2020 during the six-month months ending March 31, 2021. Loan prices benefited from a better than expected third quarter earnings season, improving liquidity profiles for most issuers, and increasing rate of deployment of COVID-19 vaccines. Demand for loans remained unsatiated given strong CLO originations, retail inflows in December through March, and inflows of money from high yield bonds into loans due to attractive relative value. Loan prices also were further bolstered by a relatively light forward calendar and unexpected loan repayment that left many loan managers underinvested.
On the supply side, there was a healthy supply of new loans issued, although recently the lion’s share of these primary volumes supported refinancing or repricing activity. Loans also benefited from continued momentum due to ratings upgrades and increased investor enthusiasm for the asset class, given higher interest rate expectations and an improving outlook for default rates.
Performance Discussion
The Ziegler Senior Floating Rate Fund’s Institutional Class Shares underperformed the Credit Suisse Leveraged Loan Index (the “Index”) for the six-month period ended March 31, 2020 by 1.76%. The Fund’s relative underperformance versus the index is largely attributable to the portfolio being skewed toward higher-quality issuers during a period when more speculative loans were rewarded with better performance. Lower rated and lower priced loans generally outperformed their comparatively higher rated and higher priced peers. Pandemic impacted industries such as aerospace, energy, and gaming/leisure which were previously out-of-favor, and where the Fund has relatively low exposure, also outperformed.
While the portfolio trailed the index during the reporting period largely due to the ongoing recovery in trading levels of lower quality credits, we continue to believe that, over the longer term, our more conservative portfolio composition is better positioned to outperform through an entire credit cycle.
Outlook
As the pandemic eases, the enormous amount of monetary and fiscal stimulus that has been injected into the U.S. economy is certain to be followed by a huge reversal in the previous years’ spending patterns as a surge of pent-up demand looks for supply. Add to that the prospect of sustained infrastructure investment and the outlook for many corporate sectors could be exceptionally bright.
The loan market has absorbed a great deal of this good news and it is evident in stable pricing, a vanishingly small bucket of distressed credit, and a robust new issue calendar that reflects healthy corporate M&A and a growing appetite for floating rate financing.
There are nevertheless reasons to be cautious, among them a pronounced increase in balance sheet leverage caused by COVID-impacted earnings and increased borrowing. While strong GDP growth will help offset this, it is likely that the recovery will be uneven in some sectors, leading to subdued but persistent idiosyncratic risk of distress and default.
It is important to note that much of the market’s buoyancy is built on a framework of relatively low credit spreads and even lower short term interest rates. While LIBOR certainly seems immovable for now, we are in uncharted waters regarding stimulus spending as well as economic growth. This has been reflected in the sometimes-chaotic gyrations in longer term yields and mortgage rates. Should inflation fears move to the forefront, and the Fed be forced to respond, it is possible that both credit and equity markets could respond negatively.
1
Against this backdrop we expect good results for the Fund going forward, albeit without the outsized upward price movements experienced in late 2020. Careful credit selection amidst a steady supply of new issue should provide ample opportunity for outperformance. Good secondary market liquidity should allow for effective relative value trading and the paring of riskier positions.
We would like to take this opportunity to thank you for the confidence and trust you have placed in us. We appreciate the opportunity to invest on your behalf.
Sincerely,
George Marshman Portfolio Manager | Roberta Goss Portfolio Manager | |
Todd Murray Portfolio Manage | Scott Roberts Portfolio Manager |
Past performance is not a guarantee of future results.
Diversification does not assure a profit nor protect against loss in a declining market. Earnings growth is not representative of the Fund’s future performance.
Opinions expressed are those of the Investment Manager, are subject to change, are not guaranteed, and should not be considered investment advice.
Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security. For a complete list of fund holdings, please refer to the Schedule of Investments section of this report.
An investment in the Fund is subject to risk and there can be no assurance that the Fund will achieve its investment objective. The principal risks of investing in the Fund include bank loans and senior loans risk, borrowing and leverage risk, CLO risk, counterparty risk, credit risk, defaulted debt securities risk, floating rate securities risk, foreign securities risk, high yield securities risk, inflation risk, interest rate risk, investment risk, issuer risk, liquidity risk, loan interests risk, manager risk, market risk, regulatory risk, and unrated securities risk. Please see the prospectus for more information. Even though senior debtholders are in line to be repaid first in the event of bankruptcy, they will not necessarily receive the full amount they are owed.
The report must be preceded or accompanied by a prospectus.
The Credit Suisse Leveraged Loan Index is designed to mirror the investable universe of the $US-denominated leveraged loan market. The index inception is January 1992.
It is not possible to invest directly in an index.
The Ziegler Senior Floating Rate Fund is distributed by Quasar Distributors, LLC
2
Ziegler Senior Floating Rate Fund | ||||
ALLOCATION OF PORTFOLIO HOLDINGS | ||||
(Calculated as a percentage of Total Investments) | ||||
March 31, 2021 (Unaudited) |
![](https://capedge.com/proxy/N-CSRSA/0000894189-22-000153/image00001.jpg)
3
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited) |
Principal | Current | |||||||||
Amount | Rate | Maturity | Value | |||||||
BANK LOANS ― 97.3% | ||||||||||
AEROSPACE & DEFENSE ― 4.3% | ||||||||||
$ | 248,125 | Amentum Holdings, LLC (1 Month USD LIBOR + 3.500%) | 3.609 | % | 2/1/2027 | $ | 246,678 | |||
750,000 | American Airlines, Inc. (3 Month USD LIBOR + 4.750%, 0.75% Floor) | 5.500 | 4/20/2028 | 769,339 | ||||||
300,000 | Mileage Plus Holdings, LLC (3 Month USD LIBOR + 5.250%, 1.00% Floor) | 6.250 | 6/21/2027 | 319,244 | ||||||
249,375 | PAE Holding Corp. (3 Month USD LIBOR + 4.500%, 0.75% Floor) | 5.250 | 10/19/2027 | 249,999 | ||||||
90,583 | Peraton Corp. (1 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.500 | 2/1/2028 | 90,734 | ||||||
159,417 | Peraton Corp. (3 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.500 | 2/1/2028 | 159,683 | ||||||
494,987 | TransDigm, Inc. (1 Month USD LIBOR + 2.250%) | 2.359 | 5/30/2025 | 485,610 | ||||||
494,987 | TransDigm, Inc. (1 Month USD LIBOR + 2.250%) | 2.359 | 8/22/2024 | 486,538 | ||||||
248,724 | Vertex Aerospace Services Corp. (1 Month USD LIBOR + 4.000%) | 4.109 | 6/29/2027 | 249,152 | ||||||
3,056,977 | ||||||||||
AUTO COMPONENTS ― 3.1% | ||||||||||
493,750 | Belron Finance US, LLC (3 Month USD LIBOR + 2.500%) | 2.462 | 10/30/2026 | 491,590 | ||||||
967,219 | Clarios Global, LP (1 Month USD LIBOR + 3.250%) | 3.359 | 4/30/2026 | 958,755 | ||||||
500,000 | Garrett LX I SARL (3 Month USD LIBOR + 3.250%, 0.50% Floor) | 3.750 | 3/6/2028 | 498,333 | ||||||
230,000 | PAI HoldCo, Inc. (6 Month USD LIBOR + 4.000%, 1.00% Floor) | 5.000 | 10/26/2027 | 231,079 | ||||||
2,179,757 | ||||||||||
AUTOMOBILES ― 0.3% | ||||||||||
185,586 | KAR Auction Services, Inc. (1 Month USD LIBOR + 2.250%) | 2.375 | 9/21/2026 | 182,222 | ||||||
BUILDING PRODUCTS ― 1.3% | ||||||||||
157,589 | Advanced Drainage Systems, Inc. (1 Month USD LIBOR + 2.250%) | 2.375 | 7/31/2026 | 158,607 | ||||||
492,500 | American Builders & Contractors Supply Co., Inc. (1 Month USD LIBOR + 2.000%) | 2.109 | 1/15/2027 | 489,217 | ||||||
158,397 | Foundation Building Materials, Inc. (1 Month USD LIBOR + 3.250%, 0.50% Floor) | 3.750 | 1/31/2028 | 157,149 | ||||||
91,603 | Foundation Building Materials, Inc. (1 Month USD LIBOR + 3.250%, 0.50% Floor) | 3.750 | 1/31/2028 | 90,882 | ||||||
895,855 | ||||||||||
BUSINESS EQUIPMENT & SERVICES ― 0.8% | ||||||||||
195,634 | Nielsen Finance, LLC (1 Month USD LIBOR + 3.750%, 1.00% Floor) | 4.750 | 6/4/2025 | 196,720 | ||||||
358,001 | ServiceMaster Co., LLC/The (1 Month USD LIBOR + 1.750%) | 1.875 | 11/5/2026 | 358,225 | ||||||
554,945 | ||||||||||
CHEMICALS ― 0.4% | ||||||||||
250,000 | Alpha 3 BV (3 Month USD LIBOR + 2.500%, 0.50% Floor) | 3.000 | 3/17/2028 | 249,570 | ||||||
COMMERCIAL SERVICES & SUPPLIES ― 2.6% | ||||||||||
86,580 | DG Investment Intermediate Holdings 2, Inc. (1 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.500 | 3/18/2028 | 86,283 | ||||||
413,420 | DG Investment Intermediate Holdings 2, Inc. (1 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.500 | 3/20/2028 | 412,000 | ||||||
171,766 | Garda World Security Corp. (1 Month USD LIBOR + 4.250%) | 4.360 | 10/30/2026 | 172,160 | ||||||
199,844 | Prime Security Services Borrower, LLC (1 Month USD LIBOR + 2.750%, 0.75% Floor) | 3.500 | 9/23/2026 | 199,281 | ||||||
256,571 | Prime Security Services Borrower, LLC (6 Month USD LIBOR + 2.750%, 0.75% Floor) | 3.500 | 9/23/2026 | 255,849 | ||||||
256,571 | Prime Security Services Borrower, LLC (12 Month USD LIBOR + 2.750%, 0.75% Floor) | 3.500 | 9/23/2026 | 255,849 | ||||||
491,269 | Trugreen, Ltd. (1 Month USD LIBOR + 4.000%, 0.75% Floor) | 4.750 | 11/2/2027 | 491,578 | ||||||
1,873,000 | ||||||||||
CONSTRUCTION & ENGINEERING ― 0.1% | ||||||||||
122,193 | McDermott International, Inc. (1 Month USD LIBOR + 1.000%) | 1.109 | 6/30/2025 | 69,242 | ||||||
19,236 | McDermott International, Inc. (1 Month USD LIBOR + 3.000%) | 3.109 | 6/30/2024 | 15,677 | ||||||
84,919 |
4
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited)(Continued) |
Principal | Current | |||||||||
Amount | Rate | Maturity | Value | |||||||
CONSTRUCTION MATERIALS ― 2.3% | ||||||||||
$ | 424,434 | CPG International, Inc. (12 Month USD LIBOR + 2.500%, 0.75% Floor) | 3.250 | % | 5/6/2024 | $ | 425,098 | |||
474,852 | Henry Company, LLC (3 Month USD LIBOR + 4.000%, 1.00% Floor) | 5.000 | 10/5/2023 | 476,455 | ||||||
742,500 | Tamko Building Products, LLC (1 Month USD LIBOR + 3.000%) | 3.109 | 5/29/2026 | 741,112 | ||||||
1,642,665 | ||||||||||
CONTAINERS & PACKAGING ― 1.7% | ||||||||||
97,966 | Graham Packaging Company, Inc (1 Month USD LIBOR + 3.000%, 0.75% Floor) | 3.750 | 8/4/2027 | 97,482 | ||||||
115,000 | Kloeckner Pentaplast of America, Inc. (3 Month USD LIBOR + 4.750%, 0.50% Floor) | 5.250 | 2/12/2026 | 114,856 | ||||||
434,394 | Reynolds Consumer Products, LLC (1 Month USD LIBOR + 1.750%) | 1.859 | 2/4/2027 | 432,848 | ||||||
279,014 | Reynolds Group Holdings, Inc. (1 Month USD LIBOR + 2.750%) | 2.859 | 2/6/2023 | 278,164 | ||||||
199,500 | Tank Holding Corp. (6 Month USD LIBOR + 5.000%, 0.75% Floor) | 5.750 | 3/26/2026 | 200,664 | ||||||
99,750 | Tosca Services, LLC (1 Month USD LIBOR + 3.500%, 0.75% Floor) | 4.250 | 8/18/2027 | 99,999 | ||||||
1,224,013 | ||||||||||
DISTRIBUTORS ― 0.7% | ||||||||||
490,000 | FleetPride, Inc. (1 Month USD LIBOR + 4.500%) | 4.609 | 2/4/2026 | 490,613 | ||||||
DIVERSIFIED CONSUMER SERVICES ― 0.6% | ||||||||||
249,375 | American Residential Services, LLC (3 Month USD LIBOR + 3.500%, 0.75% Floor) | 4.250 | 10/15/2027 | 249,063 | ||||||
198,000 | Buzz Merger Sub Ltd. (1 Month USD LIBOR + 2.750%) | 2.859 | 1/29/2027 | 197,010 | ||||||
446,073 | ||||||||||
DIVERSIFIED FINANCIAL SERVICES ― 4.4% | ||||||||||
375,000 | Ankura Consulting Group, LLC (1 Month USD LIBOR + 4.500%, 0.75% Floor) | 5.250 | 3/17/2028 | 372,656 | ||||||
2,384 | AqGen Ascensus, Inc. (3 Month USD LIBOR + 4.000%, 1.00% Floor) | 5.000 | 12/3/2026 | 2,386 | ||||||
534,487 | First Eagle Holdings, Inc. (3 Month USD LIBOR + 2.500%) | 2.703 | 2/1/2027 | 528,400 | ||||||
967,575 | NAB Holdings, LLC (3 Month USD LIBOR + 3.000%, 1.00% Floor) | 4.000 | 7/1/2024 | 965,408 | ||||||
250,000 | Russell Investments US Institutional Holdco, Inc. (3 Month USD LIBOR + 3.000%, 1.00% Floor) | 4.000 | 5/30/2025 | 249,140 | ||||||
87,455 | SS&C European Holdings SARL (1 Month USD LIBOR + 1.750%) | 1.859 | 4/16/2025 | 86,695 | ||||||
117,129 | SS&C Technologies, Inc. (1 Month USD LIBOR + 1.750%) | 1.859 | 4/16/2025 | 116,111 | ||||||
792,557 | VFH Parent, LLC (1 Month USD LIBOR + 3.000%) | 3.110 | 3/2/2026 | 791,273 | ||||||
3,112,069 | ||||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES ― 6.2% | ||||||||||
492,500 | CommScope, Inc. (1 Month USD LIBOR + 3.250%) | 3.359 | 4/6/2026 | 490,464 | ||||||
493,763 | CSC Holdings, LLC (1 Month USD LIBOR + 2.500%) | 2.606 | 4/15/2027 | 488,783 | ||||||
497,455 | Global Tel*Link Corp. (1 Month USD LIBOR + 4.250%) | 4.359 | 11/28/2025 | 469,342 | ||||||
247,500 | Iridium Satellite, LLC (1 Month USD LIBOR + 2.750%, 1.00% Floor) | 3.750 | 11/4/2026 | 248,407 | ||||||
98,020 | Securus Technologies Holdings, LLC (6 Month USD LIBOR + 4.500%, 1.00% Floor) | 5.500 | 11/1/2024 | 91,031 | ||||||
486,216 | Syniverse Holdings, Inc. (6 Month USD LIBOR + 5.000%, 1.00% Floor) | 6.000 | 3/9/2023 | 480,551 | ||||||
500,000 | Virgin Media Bristol, LLC (1 Month USD LIBOR + 2.500%) | 2.606 | 1/31/2028 | 496,223 | ||||||
483,750 | West Corp. (3 Month USD LIBOR + 4.000%, 1.00% Floor) | 5.000 | 10/10/2024 | 469,370 | ||||||
243,125 | West Corp. (3 Month USD LIBOR + 3.500%, 1.00% Floor) | 4.500 | 10/10/2024 | 234,160 | ||||||
477,082 | WideOpenWest Finance, LLC (1 Month USD LIBOR + 3.250%, 1.00% Floor) | 4.250 | 8/18/2023 | 476,934 | ||||||
500,000 | Ziggo Financing Partnership (1 Month USD LIBOR + 2.500%) | 2.606 | 4/28/2028 | 495,673 | ||||||
4,440,938 | ||||||||||
ELECTRIC UTILITIES ― 1.0% | ||||||||||
733,163 | Brookfield WEC Holdings, Inc. (1 Month USD LIBOR + 2.750%, 0.50% Floor) | 3.250 | 8/1/2025 | 727,895 |
5
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited)(Continued) |
Principal | Current | |||||||||
Amount | Rate | Maturity | Value | |||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS ― 2.5% | ||||||||||
$ | 8,054 | Plantronics, Inc. (Prime + 1.500%) | 4.750 | % | 7/2/2025 | $ | 7,963 | |||
409,461 | Plantronics, Inc. (1 Month USD LIBOR + 2.500%) | 2.609 | 7/2/2025 | 404,832 | ||||||
618,685 | Ultra Clean Holdings, Inc. (3 Month USD LIBOR + 3.750%) | 3.750 | 8/27/2025 | 621,005 | ||||||
250,000 | Ultra Clean Holdings, Inc. (3 Month USD LIBOR + 3.750%) | 3.750 | 8/27/2025 | 250,938 | ||||||
496,250 | Vertiv Group Corp. (1 Month USD LIBOR + 2.750%) | 2.869 | 3/2/2027 | 493,047 | ||||||
1,777,785 | ||||||||||
ENERGY EQUIPMENT & SERVICES ― 0.3% | ||||||||||
230,769 | Yak Access, LLC (1 Month USD LIBOR + 5.000%) | 5.109 | 7/11/2025 | 212,068 | ||||||
FOOD PRODUCTS ― 1.2% | ||||||||||
249,375 | Arterra Wines Canada, Inc. (3 Month USD LIBOR + 3.500%, 0.75% Floor) | 4.250 | 11/24/2027 | 249,998 | ||||||
346,128 | Froneri US, Inc. (1 Month USD LIBOR + 2.250%) | 2.359 | 1/29/2027 | 341,900 | ||||||
246,203 | Houston Foods, Inc. (1 Month USD LIBOR + 3.750%) | 3.859 | 7/21/2025 | 243,894 | ||||||
835,792 | ||||||||||
HEALTH CARE EQUIPMENT & SUPPLIES ― 3.5% | ||||||||||
562,500 | Bausch Health Companies, Inc. (1 Month USD LIBOR + 2.750%) | 2.859 | 11/27/2025 | 560,076 | ||||||
493,751 | National Seating & Mobility, Inc. (1 Month USD LIBOR + 5.250%) | 5.359 | 11/16/2026 | 495,294 | ||||||
982,563 | Phoenix Guarantor, Inc. (1 Month USD LIBOR + 3.250%) | 3.361 | 3/5/2026 | 973,357 | ||||||
480,636 | YI, LLC (1 Month USD LIBOR + 4.000%, 1.00% Floor) | 5.000 | 11/7/2024 | 461,411 | ||||||
2,490,138 | ||||||||||
HEALTH CARE PROVIDERS & SERVICES ― 5.4% | ||||||||||
732,475 | Bracket Intermediate Holding Corp. (3 Month USD LIBOR + 4.250%) | 4.488 | 9/5/2025 | 728,813 | ||||||
744,997 | Da Vinci Purchaser Corp. (6 Month USD LIBOR + 4.000%, 1.00% Floor) | 5.000 | 1/8/2027 | 746,394 | ||||||
495,717 | Eyecare Partners, LLC (1 Month USD LIBOR + 3.750%) | 3.859 | 2/18/2027 | 491,828 | ||||||
38,484 | National Mentor Holdings, Inc. (1 Month USD LIBOR + 3.750%, 0.75% Floor) (3) | 0.000 | 3/2/2028 | 38,296 | ||||||
349,854 | National Mentor Holdings, Inc. (1 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.500 | 3/2/2028 | 348,149 | ||||||
11,662 | National Mentor Holdings, Inc. (3 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.500 | 3/2/2028 | 11,605 | ||||||
249,375 | Pluto Acquisition I, Inc. (1 Month USD LIBOR + 5.000%, 0.50% Floor) | 5.500 | 6/22/2026 | 250,310 | ||||||
515,102 | Radiology Partners, Inc. (1 Month USD LIBOR + 4.250%) | 4.357 | 7/9/2025 | 511,937 | ||||||
441,648 | Radiology Partners, Inc. (3 Month USD LIBOR + 4.250%) | 5.295 | 7/9/2025 | 438,934 | ||||||
247,500 | Upstream Newco, Inc. (1 Month USD LIBOR + 4.500%) | 4.609 | 11/20/2026 | 247,347 | ||||||
3,813,613 | ||||||||||
HEALTH CARE TECHNOLOGY ― 3.5% | ||||||||||
498,734 | Ensemble RCM, LLC (3 Month USD LIBOR + 3.750%) | 3.962 | 8/3/2026 | 498,617 | ||||||
495,000 | Navicure, Inc. (1 Month USD LIBOR + 4.000%) | 4.109 | 10/22/2026 | 496,549 | ||||||
500,000 | Project Ruby Ultimate Parent Corp. (1 Month USD LIBOR + 3.250%, 0.75% Floor) | 4.000 | 3/10/2028 | 498,750 | ||||||
974,995 | Verscend Holding Corp. (1 Month USD LIBOR + 4.500%) | 4.609 | 8/27/2025 | 976,351 | ||||||
2,470,267 | ||||||||||
HOTELS RESTAURANTS & LEISURE ― 3.4% | ||||||||||
492,500 | Aimbridge Acquisition Co, Inc. (1 Month USD LIBOR + 3.750%) | 3.859 | 2/2/2026 | 479,572 | ||||||
490,000 | AMC Entertainment, Inc. (3 Month USD LIBOR + 3.000%) | 3.195 | 4/22/2026 | 425,306 | ||||||
347,375 | Aristocrat International PTY Ltd. (3 Month USD LIBOR + 3.750%, 1.00% Floor) | 4.750 | 10/21/2024 | 349,221 | ||||||
497,500 | Caesars Resort Collection, LLC (1 Month USD LIBOR +4.500%) | 4.609 | 7/21/2025 | 499,139 | ||||||
687,595 | Scientific Games International, Inc. (1 Month USD LIBOR + 2.750%) | 2.859 | 8/14/2024 | 675,717 | ||||||
2,428,955 | ||||||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS ― 5.0% | ||||||||||
186,957 | Array Technologies, Inc. (1 Month USD LIBOR + 3.250%, 0.50% Floor) | 3.750 | 10/14/2027 | 187,074 |
6
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited)(Continued) |
Principal | Current | |||||||||
Amount | Rate | Maturity | Value | |||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS ― 5.0% (Continued) | ||||||||||
$ | 489,705 | Calpine Corp. (1 Month USD LIBOR + 2.500%) | 2.610 | % | 12/16/2027 | $ | 487,323 | |||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS ― 5.0% (Continued) | ||||||||||
975,861 | Eastern Power, LLC (3 Month USD LIBOR + 3.750%, 1.00% Floor) | 4.750 | 10/2/2025 | 922,862 | ||||||
903,727 | Lightstone Holdco, LLC (3 Month USD LIBOR + 3.750%, 1.00% Floor) | 4.750 | 1/30/2024 | 717,017 | ||||||
50,972 | Lightstone Holdco, LLC (3 Month USD LIBOR + 3.750%, 1.00% Floor) | 4.750 | 1/30/2024 | 40,441 | ||||||
413,592 | Southeast PowerGen, LLC (1 Month USD LIBOR + 3.500%, 1.00% Floor) | 4.500 | 12/2/2021 | 403,459 | ||||||
855,000 | Talen Energy Supply, LLC (1 Month USD LIBOR + 3.750%) | 3.859 | 7/8/2026 | 833,625 | ||||||
3,591,801 | ||||||||||
INDUSTRIAL CONGLOMERATES ― 1.3% | ||||||||||
971,143 | CD&R Hydra Buyer, Inc. (1 Month USD LIBOR + 4.250%, 1.00% Floor) | 5.250 | 12/11/2024 | 950,710 | ||||||
INSURANCE ― 2.6% | ||||||||||
488,766 | Alera Group Intermediate Holdings, Inc. (1 Month USD LIBOR + 4.000%, 0.50% Floor) | 4.500 | 8/1/2025 | 489,376 | ||||||
99,750 | Asurion, LLC (1 Month USD LIBOR + 3.250%) | 3.359 | 12/23/2026 | 99,243 | ||||||
248,750 | Baldwin Risk Partners, LLC (1 Month USD LIBOR + 4.000%, 0.75% Floor) | 4.750 | 10/14/2027 | 248,750 | ||||||
495,000 | Broadstreet Partners, Inc. (1 Month USD LIBOR + 3.250%) | 3.359 | 1/27/2027 | 490,085 | ||||||
78,125 | OneDigital Borrower, LLC (1 Month USD LIBOR + 4.500%, 0.75% Floor) (3) | 5.250 | 11/16/2027 | 78,255 | ||||||
421,875 | OneDigital Borrower, LLC (3 Month USD LIBOR + 4.500%, 0.75% Floor) | 5.250 | 11/16/2027 | 422,580 | ||||||
1,828,289 | ||||||||||
INTERNET SOFTWARE & SERVICES ― 2.6% | ||||||||||
199,500 | Arches Buyer, Inc. (1 Month USD LIBOR + 3.250%, 0.50% Floor) | 3.750 | 12/6/2027 | 198,453 | ||||||
394,118 | Constant Contact, Inc. (1 Month USD LIBOR + 4.000%, 0.75% Floor) | 4.750 | 2/10/2028 | 392,147 | ||||||
105,882 | Constant Contact, Inc. (1 Month USD LIBOR + 4.000%, 0.75% Floor) (3) | 0.000 | 2/10/2028 | 105,353 | ||||||
424,101 | Cornerstone OnDemand, Inc. (1 Month USD LIBOR + 4.250%) | 4.361 | 4/22/2027 | 425,030 | ||||||
250,000 | Playtika Holding Corp. (1 Month USD LIBOR + 2.750%) | 2.859 | 3/13/2028 | 248,906 | ||||||
483,750 | Research Now Group, Inc. (6 Month USD LIBOR + 5.500%, 1.00% Floor) | 6.500 | 12/20/2024 | 480,182 | ||||||
1,850,071 | ||||||||||
IT SERVICES ― 1.3% | ||||||||||
298,500 | GlobalLogic Holdings, Inc. (1 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.500 | 9/14/2027 | 298,873 | ||||||
381,728 | Salient CRGT, Inc. (6 Month USD LIBOR + 6.500%, 1.00% Floor) | 7.500 | 2/28/2022 | 376,813 | ||||||
250,000 | Thoughtworks, Inc. (1 Month USD LIBOR + 3.250%, 0.50% Floor) | 3.750 | 3/24/2028 | 249,793 | ||||||
925,479 | ||||||||||
MACHINERY ― 3.3% | ||||||||||
382,576 | Altra Industrial Motion Corp. (1 Month USD LIBOR + 2.000%) | 2.109 | 10/1/2025 | 380,854 | ||||||
250,000 | Blount International, Inc. (1 Month USD LIBOR + 3.750%, 1.00% Floor) | 4.750 | 4/12/2023 | 250,938 | ||||||
493,639 | Patriot Container Corp. (1 Month USD LIBOR + 3.500%, 1.00% Floor) | 4.500 | 3/20/2025 | 489,475 | ||||||
397,000 | Star US Bidco, LLC (1 Month USD LIBOR + 4.250%, 1.00% Floor) | 5.250 | 3/17/2027 | 394,354 | ||||||
713,985 | Titan Acquisition, Ltd. (6 Month USD LIBOR + 3.000%) | 3.267 | 3/28/2025 | 700,708 | ||||||
149,251 | Vertical US Newco, Inc. (6 Month USD LIBOR + 4.250%) | 4.478 | 7/30/2027 | 149,802 | ||||||
2,366,131 | ||||||||||
MEDIA ― 8.9% | ||||||||||
977,500 | AppLovin Corp. (1 Month USD LIBOR + 3.500%) | 3.609 | 8/15/2025 | 977,862 | ||||||
495,833 | Castle US Holding Corp. (3 Month USD LIBOR + 3.750%) | 3.953 | 1/29/2027 | 490,565 | ||||||
550,000 | CMI Marketing, Inc. (3 Month USD LIBOR + 4.750%, 0.75% Floor) | 5.500 | 3/20/2028 | 546,565 | ||||||
246,875 | Creative Artists Agency, LLC (1 Month USD LIBOR + 3.750%) | 3.859 | 11/26/2026 | 244,473 | ||||||
985,000 | Diamond Sports Group, LLC (1 Month USD LIBOR + 3.250%) | 3.360 | 8/24/2026 | 683,753 | ||||||
357,500 | Entravision Communication Corp. (1 Month USD LIBOR + 2.750%) | 2.859 | 11/29/2024 | 353,626 | ||||||
424,821 | Gray Television, Inc. (1 Month USD LIBOR + 2.500%) | 2.615 | 1/2/2026 | 422,765 |
7
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited)(Continued) |
Principal | Current | |||||||||
Amount | Rate | Maturity | Value | |||||||
MEDIA ― 8.9% (Continued) | ||||||||||
$ | 569,324 | Harland Clarke Holdings Corp. (3 Month USD LIBOR + 4.750%, 1.00% Floor) | 5.750 | % | 11/3/2023 | $ | 509,980 | |||
248,125 | iHeartCommunications, Inc. (1 Month USD LIBOR + 4.000%, 0.75% Floor) | 4.750 | 5/1/2026 | 248,900 | ||||||
340,370 | Lions Gate Capital Holdings, LLC (1 Month USD LIBOR + 2.250%) | 2.359 | 3/24/2025 | 335,973 | ||||||
861,546 | Terrier Media Buyer, Inc. (1 Month USD LIBOR + 3.500%) | 3.609 | 12/17/2026 | 855,024 | ||||||
459,884 | Univision Communications, Inc. (1 Month USD LIBOR + 3.750%, 1.00% Floor) | 4.750 | 3/13/2026 | 460,302 | ||||||
199,500 | Weld North Education, LLC (1 Month USD LIBOR + 4.000%, 0.75% Floor) | 4.750 | 12/21/2027 | 199,389 | ||||||
6,329,177 | ||||||||||
METALS & MINING ― 1.1% | ||||||||||
189,288 | GrafTech Finance, Inc. (1 Month USD LIBOR + 3.000%, 0.50% Floor) | 3.500 | 2/12/2025 | 189,584 | ||||||
393,854 | MRC Global, Inc. (1 Month USD LIBOR + 3.000%) | 3.109 | 9/20/2024 | 391,392 | ||||||
242,694 | Zekelman Industries, Inc. (1 Month USD LIBOR + 2.000%) | 2.110 | 1/25/2027 | 239,812 | ||||||
820,788 | ||||||||||
OIL, GAS & CONSUMABLE FUELS ― 2.3% | ||||||||||
��500,000 | Fieldwood Energy, LLC (Prime + 4.250%, 1.00% Floor) (2) | 7.500 | 4/11/2022 | 197,918 | ||||||
500,000 | Fieldwood Energy, LLC (Prime + 8.250%, 1.00% Floor) (2) | 11.500 | 4/11/2023 | 28,750 | ||||||
485,057 | Northriver Midstream TLB (3 Month USD LIBOR + 3.250%) | 3.488 | 10/1/2025 | 479,185 | ||||||
987,500 | Prairie ECI Acquiror, LP (1 Month USD LIBOR + 4.750%) | 4.859 | 3/11/2026 | 960,162 | ||||||
1,666,015 | ||||||||||
PHARMACEUTICALS ― 3.6% | ||||||||||
693,000 | Aldevron, LLC (1 Month USD LIBOR + 3.250%, 1.00% Floor) | 4.250 | 10/12/2026 | 693,433 | ||||||
250,000 | Alkermes, Inc. (1 Month USD LIBOR + 2.500%, 0.50% Floor) | 3.000 | 3/12/2026 | 250,000 | ||||||
688,646 | Alvogen Pharma U.S., Inc. (6 Month USD LIBOR + 5.250%, 1.00% Floor) | 6.250 | 12/29/2023 | 687,957 | ||||||
979,555 | Amneal Pharmaceuticals, LLC (1 Month USD LIBOR + 3.500%) | 3.625 | 5/5/2025 | 963,901 | ||||||
2,595,291 | ||||||||||
PROFESSIONAL SERVICES ― 1.3% | ||||||||||
956,467 | IG Investments Holdings, LLC (3 Month USD LIBOR + 4.000%, 1.00% Floor) | 5.000 | 5/23/2025 | 957,964 | ||||||
REAL ESTATE MANAGEMENT AND DEVELOPMENT ― 1.0% | ||||||||||
733,219 | Cushman & Wakefield U.S. Borrower, LLC (1 Month USD LIBOR + 2.750%) | 2.859 | 8/21/2025 | 719,929 | ||||||
ROAD & RAIL ― 1.0% | ||||||||||
721,484 | Gruden Acquisition, Inc. (3 Month USD LIBOR + 5.500%, 1.00% Floor) | 6.500 | 8/18/2022 | 721,484 | ||||||
SOFTWARE ― 5.7% | ||||||||||
982,500 | Athenahealth, Inc. (3 Month USD LIBOR + 4.250%) | 4.453 | 2/11/2026 | 986,184 | ||||||
487,469 | Brave Parent Holdings, Inc. (1 Month USD LIBOR + 4.000%) | 4.109 | 4/18/2025 | 487,876 | ||||||
498,750 | LogMeIn, Inc. (1 Month USD LIBOR + 4.750%) | 4.854 | 8/31/2027 | 498,048 | ||||||
972,500 | Mavenir Systems, Inc. (3 Month USD LIBOR + 6.000%, 1.00% Floor) | 7.000 | 5/8/2025 | 974,323 | ||||||
610,939 | Project Alpha Intermediate Holding, Inc. (1 Month USD LIBOR + 4.000%) | 4.110 | 4/26/2024 | 610,099 | ||||||
495,000 | VS Buyer, LLC (1 Month USD LIBOR + 3.000%) | 3.109 | 2/26/2027 | 494,176 | ||||||
4,050,706 | ||||||||||
SPECIALTY RETAIL ― 3.8% | ||||||||||
62,852 | Ascena Retail Group, Inc. (1 Month USD LIBOR + 4.500%, 0.75% Floor) (2) | 5.250 | 8/22/2022 | 10,986 | ||||||
81,509 | Ascena Retail Group, Inc. (3 Month USD LIBOR + 4.500%, 0.75% Floor) (2) | 5.250 | 8/22/2022 | 14,248 | ||||||
487,538 | Aspen Dental Management, Inc. (1 Month USD LIBOR + 2.750%) | 2.859 | 4/30/2025 | 481,536 |
8
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited)(Continued) |
Principal | Current | |||||||||
Amount | Rate | Maturity | Value | |||||||
$ | 249,375 | Harbor Freight Tools USA, Inc. (1 Month USD LIBOR + 3.000%, 0.75% Floor) | 3.750 | % | 10/19/2027 | $ | 249,431 | |||
783,346 | Heartland Dental, LLC (1 Month USD LIBOR + 3.500%) | 3.609 | 4/30/2025 | 772,128 | ||||||
500,000 | MED ParentCo, LP (1 Month USD LIBOR + 4.250%) | 4.359 | 8/31/2026 | 496,835 | ||||||
333,115 | Talbots, Inc./The (3 Month USD LIBOR + 7.000%, 1.00% Floor) | 8.000 | 11/28/2022 | 254,278 | ||||||
470,273 | Western Dental Services, Inc. (3 Month USD LIBOR + 5.250%, 1.00% Floor) | 6.250 | 6/30/2023 | 461,650 | ||||||
2,741,092 | ||||||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS ― 2.9% | ||||||||||
248,750 | 1a Smart Start, Inc. (3 Month USD LIBOR + 4.750%, 1.00% Floor) | 5.750 | 8/19/2027 | 250,149 | ||||||
498,737 | Gigamon, Inc. (6 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.500 | 12/27/2024 | 499,987 | ||||||
731,250 | LTI Holdings, Inc. (1 Month USD LIBOR + 3.500%) | 3.609 | 9/8/2025 | 721,575 | ||||||
592,424 | Sonicwall US Holdings, Inc. (3 Month USD LIBOR + 3.500%) | 3.682 | 5/16/2025 | 586,355 | ||||||
2,058,066 | ||||||||||
TOTAL BANK LOANS (Cost $70,898,984) | $ | 69,363,122 | ||||||||
Shares | ||||||||||
COMMON STOCK ― 0.1% | ||||||||||
CONSTRUCTION & ENGINEERING ― 0.1% | ||||||||||
53,218 | Mcdermott International Ltd. (4) | 42,574 | ||||||||
TOTAL COMMON STOCK (Cost $467,382) | $ | 42,574 | ||||||||
SHORT TERM INVESTMENT ― 6.6% | ||||||||||
4,691,703 | Short-Term Investments Trust - Government & Agency Portfolio - Institutional Class, 0.030% (5) | 4,691,703 | ||||||||
TOTAL SHORT TERM INVESTMENT (Cost $4,691,703) | $ | 4,691,703 | ||||||||
TOTAL INVESTMENTS ― 104.0% (Cost $76,058,069) | 74,097,399 | |||||||||
Liabilities in Excess of Other Assets ― (4.0)% | (2,870,283) | |||||||||
TOTAL NET ASSETS ― 100.0% | $ | 71,227,116 | ||||||||
Percentages are stated as a percent of net assets. | ||||||||
(1) Variable rates securities. Description includes reference rate and spread. Rates reset at each loan payment. | ||||||||
(2) Defaulted security. | ||||||||
(3) Unfunded or partially unfunded loan commitment. Principal pledged has not been drawn. | ||||||||
(4) Non income producing. | ||||||||
(5) Rate quoted is seven-day yield at period end. | ||||||||
The S&P’s industry classification was developed by and/or is the exclusive property of the Standard & Poor's Financial | ||||||||
Services, LLC ("S&P") and has been licensed for use by Ziegler Capital Management, LLC. | ||||||||
The accompanying notes are an integral part of these financial statements. |
9
Ziegler Senior Floating Rate Fund | ||||
STATEMENT OF ASSETS AND LIABILITIES | ||||
March 31, 2021 (Unaudited) | ||||
Assets: | ||||
Investments in securities at value (cost $76,058,069) | $ | 74,097,399 | ||
Cash | 382,148 | |||
Receivables: | ||||
Investment securities sold | 312,111 | |||
Fund shares sold | 475,000 | |||
Interest | 139,563 | |||
Prepaid expenses | 38,837 | |||
Total assets | 75,445,058 | |||
Liabilities: | ||||
Payables: | ||||
Investment securities purchased | 3,938,655 | |||
Fund shares redeemed | 85,345 | |||
Distributions to shareholders | 24,333 | |||
Due to Investment Adviser | 10,013 | |||
Distribution Fees | 32,110 | |||
Accrued expenses and other liabilities | 127,486 | |||
Total liabilities | 4,217,942 | |||
Net Assets | $ | 71,227,116 | ||
Components of Net Assets: | ||||
Paid-in capital | $ | 75,086,569 | ||
Total accumulated loss | (3,859,453 | ) | ||
Net Assets | $ | 71,227,116 | ||
Class A: | ||||
Net Assets | $ | 4,792,839 | ||
Issued and Outstanding | 192,845 | |||
Net Asset Value and Redemption Price^ | $ | 24.85 | ||
Maximum Public Offering Price (based on maximum initial sales charge of 4.25%) | $ | 25.95 | ||
Class C: | ||||
Net Assets | $ | 7,062,816 | ||
Issued and Outstanding | 285,829 | |||
Net Asset Value, Redemption Price* and Offering Price Per Share | $ | 24.71 | ||
Institutional Class: | ||||
Net Assets | $ | 59,371,461 | ||
Issued and Outstanding | 2,394,678 | |||
Net Asset Value, Redemption Price and Offering Price Per Share | $ | 24.79 |
^ Initial sales charge of 4.25% is waived if Class A shares purchased in excess of $1,000,000. The 1.00% CDSC applies | |||
when sales charge is waived and shares areredeemed within 18 months of purchase (see Note 3). | |||
* Redemption price per share of Class C shares is NAV reduced by a 1.00% CDSC if shares are redeemed within one | |||
year of purchase (see Note 3). |
The accompanying notes are an integral part of these financial statements.
10
Ziegler Senior Floating Rate Fund | ||||
STATEMENT OF OPERATIONS | ||||
For the Six Months Ended March 31, 2021 (Unaudited) | ||||
Investment Income: | ||||
Interest income | $ | 1,499,575 | ||
Bank loan fee income | 14,216 | |||
Total investment income | 1,513,791 | |||
Expenses: | ||||
Advisory fees (Note 3) | 225,643 | |||
Administration and fund accounting fees (Note 3) | 70,427 | |||
Distribution fees (Note 6) | 44,688 | |||
Transfer agent fees and expenses (Note 3) | 39,867 | |||
Registration fees | 24,107 | |||
Legal fees | 10,776 | |||
Custody fees (Note 3) | 10,774 | |||
Audit fees | 10,243 | |||
Compliance Fee (Note 3) | 10,060 | |||
Trustee fees (Note 3) | 8,278 | |||
Shareholder reporting fees | 6,081 | |||
Service Fee | 3,265 | |||
Insurance fees | 1,623 | |||
Miscellaneous expenses | 4,804 | |||
Total expenses | 470,636 | |||
Expenses waived by the Adviser (Note 3) | (169,062 | ) | ||
Net expenses | 301,574 | |||
Net investment income | 1,212,217 | |||
Realized and Unrealized Gain on Investments | ||||
Net realized gain on investments | 120,872 | |||
Net change in unrealized appreciation/depreciation on investments | 1,331,138 | |||
Net realized and unrealized gain on investments | 1,452,010 | |||
Net increase in net assets resulting from operations | $ | 2,664,227 |
The accompanying notes are an integral part of these financial statements.
11
Ziegler Senior Floating Rate Fund | ||||||||
STATEMENTS OF CHANGES IN NET ASSETS | ||||||||
For the Six Months Ended March 31, 2021 | For the Year Ended | |||||||
(Unaudited) | September 30, 2020 | |||||||
Increase (Decrease) in Net Assets from: | ||||||||
Operations: | ||||||||
Net investment income | $ | 1,212,217 | $ | 3,383,235 | ||||
Net realized gain (loss) on investments | 120,872 | (2,020,836 | ) | |||||
Net change in unrealized appreciation/depreciation on investments | 1,331,138 | (1,194,535 | ) | |||||
Net increase in net assets resulting from operations | 2,664,227 | 167,864 | ||||||
Distributions to shareholders: | ||||||||
Class A Shares | (83,318 | ) | (222,935 | ) | ||||
Class C Shares | (101,160 | ) | (316,290 | ) | ||||
Institutional Class Shares | (1,027,688 | ) | (2,874,754 | ) | ||||
Total distributions to shareholders | (1,212,166 | ) | (3,413,979 | ) | ||||
Capital Transactions: | ||||||||
Net proceeds from shares sold: | ||||||||
Class A Shares | 393,735 | 735,160 | ||||||
Class C Shares | 69,898 | 242,450 | ||||||
Institutional Class Shares | 2,913,638 | 10,964,381 | ||||||
Reinvestment of distributions: | ||||||||
Class A Shares | 21,906 | 56,682 | ||||||
Class C Shares | 89,312 | 277,065 | ||||||
Institutional Class Shares | 935,777 | 2,583,640 | ||||||
Cost of shares repurchased: | ||||||||
Class A Shares* | (473,878 | ) | (1,377,364 | ) | ||||
Class C Shares | (1,315,690 | ) | (2,004,183 | ) | ||||
Institutional Class Shares | (1,655,437 | ) | (20,509,736 | ) | ||||
Net increase (decrease) in net assets from capital transactions | 979,261 | (9,031,905 | ) | |||||
Total Increase (Decrease) in Net Assets | 2,431,322 | (12,278,020 | ) | |||||
Net Assets: | ||||||||
Beginning of period | 68,795,794 | 81,073,814 | ||||||
End of period | $ | 71,227,116 | $ | 68,795,794 | ||||
Capital Share Transactions: | ||||||||
Shares sold: | ||||||||
Class A Shares | 15,979 | 30,927 | ||||||
Class C Shares | 2,850 | 9,733 | ||||||
Institutional Class Shares | 117,285 | 444,813 | ||||||
Shares reinvested: | ||||||||
Class A Shares | 886 | 2,351 | ||||||
Class C Shares | 3,634 | 11,497 | ||||||
Institutional Class Shares | 37,933 | 107,027 | ||||||
Shares repurchased: | ||||||||
Class A Shares | (18,999 | ) | (62,208 | ) | ||||
Class C Shares | (53,223 | ) | (82,606 | ) | ||||
Institutional Class Shares | (66,844 | ) | (847,034 | ) | ||||
Net increase (decrease) in shares outstanding | 39,501 | (385,500 | ) | |||||
* Net of redemption fees (see Note 3) |
The accompanying notes are an integral part of these financial statements.
12
Ziegler Senior Floating Rate Fund | |||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||
Class A Shares | |||||||||||||
Per Share Data for a Share Outstanding Throughout Each Period Presented. | |||||||||||||
For the Six | For the Period | ||||||||||||
Months Ended | April 1, 2016* | ||||||||||||
March 31, 2021 | For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | Through | ||||||||
(Unaudited) | September 30, 2020 | September 30, 2019 | September 30, 2018 | September 30, 2017 | September 30, 2016 | ||||||||
Net Asset Value, Beginning of Period | $24.34 | $25.18 | $26.01 | $25.87 | $25.78 | $25.00 | |||||||
INCOME FROM INVESTMENT OPERATIONS: | |||||||||||||
Net investment income(1) | 0.42 | 1.05 | 1.35 | 1.22 | 1.08 | 0.32 | |||||||
Net realized and unrealized gain (loss) on investments | 0.51 | (0.83) | (0.78) | 0.14 | 0.13 | 0.72 | |||||||
Total Gain from Investment Operations | 0.93 | 0.22 | 0.57 | 1.36 | 1.21 | 1.04 | |||||||
LESS DISTRIBUTIONS: | |||||||||||||
From net investment income | (0.42) | (1.05) | (1.35) | (1.14) | (1.05) | (0.26) | |||||||
From net realized gain on investments | - | (0.01) | (0.05) | (0.08) | (0.07) | - | |||||||
Total Distributions | (0.42) | (1.06) | (1.40) | (1.22) | (1.12) | (0.26) | |||||||
Redemption fee proceeds(1) | - | - | 0.00 | (2) | - | - | - | ||||||
Net Asset Value, End of Period | $24.85 | $24.34 | $25.18 | $26.01 | $25.87 | $25.78 | |||||||
Total Return(3) | 3.82% | (4) | 0.97% | 2.27% | 5.37% | 4.80% | 4.15% | (4) | |||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||
Net assets, end of period (in thousands) | $4,793 | $4,746 | $5,638 | $8,563 | $265 | $132 | |||||||
Ratio of expenses to average net assets | |||||||||||||
Before fees waived / reimbursed by the Adviser | 1.47% | (5) | 1.43% | 1.31% | 1.35% | 1.64% | 2.07% | (5) | |||||
After fees waived / reimbursed by the Adviser | 0.99% | (5) | 0.99% | 0.99% | 0.99% | 0.99% | 0.99% | (5) | |||||
Ratio of net investment income to average net assets | |||||||||||||
After fees waived / reimbursed by the Adviser | 3.37% | (5) | 4.36% | 5.28% | 4.69% | 4.22% | 2.55% | (5) | |||||
Portfolio turnover rate(6) | 19% | (4) | 41% | 61% | 35% | 105% | 23% | (4) | |||||
* | Inception date | ||||||||||||
(1) | Computed using average shares method. | ||||||||||||
(2) | Amount represents less than $0.01 per share. | ||||||||||||
(3) | Performance reported does not reflect sales charges. | ||||||||||||
(4) | Not Annualized. | ||||||||||||
(5) | Annualized. | ||||||||||||
(6) | Portfolio turnover rate is calculated for the Fund without distinguishing between classes. |
The accompanying notes are an integral part of these financial statements.
13
Ziegler Senior Floating Rate Fund | |||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||
Class C Shares | |||||||||||||
Per Share Data for a Share Outstanding Throughout Each Period Presented. | |||||||||||||
For the Six | For the Period | ||||||||||||
Months Ended | April 1, 2016* | ||||||||||||
March 31, 2021 | For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | Through | ||||||||
(Unaudited) | September 30, 2020 | September 30, 2019 | September 30, 2018 | September 30, 2017 | September 30, 2016 | ||||||||
Net Asset Value, Beginning of Period | $24.20 | $25.12 | $25.96 | $25.83 | $25.75 | $25.00 | |||||||
INCOME FROM INVESTMENT OPERATIONS: | |||||||||||||
Net investment income(1) | 0.32 | 0.87 | 1.16 | 1.01 | 0.90 | 0.35 | |||||||
Net realized and unrealized gain (loss) on investments | 0.51 | (0.92) | (0.78) | 0.16 | 0.13 | 0.59 | |||||||
Total Gain (Loss) from Investment Operations | 0.83 | (0.05) | 0.38 | 1.17 | 1.03 | 0.94 | |||||||
LESS DISTRIBUTIONS: | |||||||||||||
From net investment income | (0.32) | (0.86) | (1.17) | (0.96) | (0.88) | (0.19) | |||||||
From net realized gain on investments | - | (0.01) | (0.05) | (0.08) | (0.07) | - | |||||||
Total Distributions | (0.32) | (0.87) | (1.22) | (1.04) | (0.95) | (0.19) | |||||||
Net Asset Value, End of Period | $24.71 | $24.20 | $25.12 | $25.96 | $25.83 | $25.75 | |||||||
Total Return(2) | 3.45% | (3) | -0.12% | 1.52% | 4.56% | 4.06% | 3.77% | (3) | |||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||
Net assets, end of period (in thousands) | $7,063 | $8,049 | $9,894 | $2,665 | $713 | $62 | |||||||
Ratio of expenses to average net assets | |||||||||||||
Before fees waived / reimbursed by the Adviser | 2.22% | (4) | 2.18% | 2.07% | 2.12% | 2.39% | 2.82% | (4) | |||||
After fees waived / reimbursed by the Adviser | 1.74% | (4) | 1.74% | 1.74% | 1.74% | 1.74% | 1.74% | (4) | |||||
Ratio of net investment income to average net assets | |||||||||||||
After fees waived / reimbursed by the Adviser | 2.63% | (4) | 3.60% | 4.56% | 3.88% | 3.55% | 2.74% | (4) | |||||
Portfolio turnover rate(5) | 19% | (3) | 41% | 61% | 35% | 105% | 23% | (3) | |||||
* | Inception date | ||||||||||||
(1) | Computed using average shares method. | ||||||||||||
(2) | Performance reported does not reflect sales charges. | ||||||||||||
(3) | Not Annualized. | ||||||||||||
(4) | Annualized. | ||||||||||||
(5) | Portfolio turnover rate is calculated for the Fund without distinguishing between classes. |
14
Ziegler Senior Floating Rate Fund | |||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||
Institutional Class Shares | |||||||||||||
Per Share Data for a Share Outstanding Throughout Each Period Presented. | |||||||||||||
For the Six | For the Period | ||||||||||||
Months Ended | April 1, 2016* | ||||||||||||
March 31, 2021 | For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | Through | ||||||||
(Unaudited) | September 30, 2020 | September 30, 2019 | September 30, 2018 | September 30, 2017 | September 30, 2016 | ||||||||
Net Asset Value, Beginning of Period | $24.28 | $25.19 | $26.02 | $25.88 | $25.79 | $25.00 | |||||||
INCOME FROM INVESTMENT OPERATIONS: | |||||||||||||
Net investment income(1) | 0.45 | 1.10 | 1.41 | 1.25 | 1.14 | 0.36 | |||||||
Net realized and unrealized gain (loss) on investments | 0.51 | (0.90) | (0.77) | 0.17 | 0.14 | 0.71 | |||||||
Total Gain from Investment Operations | 0.96 | 0.20 | 0.64 | 1.42 | 1.28 | 1.07 | |||||||
LESS DISTRIBUTIONS: | |||||||||||||
From net investment income | (0.45) | (1.10) | (1.42) | (1.20) | (1.12) | (0.28) | |||||||
From net realized gain on investments | - | (0.01) | (0.05) | (0.08) | (0.07) | - | |||||||
Total Distributions | (0.45) | (1.11) | (1.47) | (1.28) | (1.19) | (0.28) | |||||||
Net Asset Value, End of Period | $24.79 | $24.28 | $25.19 | $26.02 | $25.88 | $25.79 | |||||||
Total Return | 3.96% | (2) | 0.93% | 2.56% | 5.62% | 5.06% | 4.28% | (2) | |||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||
Net assets, end of period (in thousands) | $59,371 | $56,001 | $65,542 | $80,262 | $49,183 | $35,740 | |||||||
Ratio of expenses to average net assets | |||||||||||||
Before fees waived / reimbursed by the Adviser | 1.23% | (3) | 1.19% | 1.08% | 1.17% | 1.43% | 1.85% | (3) | |||||
After fees waived / reimbursed by the Adviser | 0.74% | (3) | 0.74% | 0.74% | 0.74% | 0.74% | 0.74% | (3) | |||||
Ratio of net investment income to average net assets | |||||||||||||
After fees waived / reimbursed by the Adviser | 3.62% | (3) | 4.57% | 5.52% | 4.79% | 4.43% | 2.83% | (3) | |||||
Portfolio turnover rate(4) | 19% | (2) | 41% | 61% | 35% | 105% | 23% | (2) | |||||
* | Inception date | ||||||||||||
(1) | Computed using average shares method. | ||||||||||||
(2) | Not Annualized. | ||||||||||||
(3) | Annualized. | ||||||||||||
(4) | Portfolio turnover rate is calculated for the Fund without distinguishing between classes. |
15
Ziegler Piermont Small Cap Value Fund
Semi-Annual Period Ending March 31, 2021
Dear Investor:
We are pleased to present you with the Semi-Annual Report of Ziegler Piermont Small Cap Value Fund (the “Fund”) for the six-month period ended March 31, 2021.
During the reporting period, the Fund’s total return was 54.87% for Institutional shares, which trailed the Russell 2000 Value Index’s return of 61.59%.
Market Environment and Performance Discussion
The six-month reporting period was composed of two distinct regimes in terms of market leadership within the Small Cap Value universe of stocks as defined by the constituents of the Russell 2000 Value Index. The period from October 2020 through January 2021 was characterized by a strong rally from lower quality, more speculative stocks and a rebound in stocks that had been most penalized by investors during the early stages of the COVID 19 pandemic.
Unsurprisingly, the Fund lagged the benchmark during this period as our investment process favors higher quality companies with favorable earnings characteristics and attractive valuations. While we have found these types of companies tend to reward investors over the long term, they were not in favor during the October through January period.
February and March 2021 saw a return to market conditions more favorable to our investment process, with strongly positive return contributions coming from valuation factors, as well as significant improvement in the profitability, growth and balance sheet factors. This combination benefited the Fund’s performance relative to the benchmark.
Outlook
In our experience managing small cap value portfolios, we have found low-quality speculative stock rallies to be very difficult to anticipate. Fortunately, they have historically not lasted long and have been followed by longer, sustained periods favoring our investment process where higher quality companies outperform. Our expectation is that higher quality factors will be among the strongest positive contributing factor types over the near-term environment and over the next 12 to 18 months, which we believe will benefit the Fund’s performance.
We appreciate your investment in the Ziegler Piermont Small Cap Value fund.
Sincerely,
John Albert Portfolio Manager | Kevin Finn Portfolio Manager | |
John Russon Portfolio Manager |
Past performance is not a guarantee of future results.
Mutual fund investing involves risk, and principal loss is possible. There can be no assurance that the Fund will achieve its investment objective. Investing in small-capitalization companies involves additional risks such as limited liquidity and greater volatility than large-capitalization companies. The Adviser relies on its proprietary model (“Models and Data”) in making investment decisions for the Fund. When Models and Data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the Fund to potential loss. The value approach to investing involves the risk that stocks of undervalued companies may remain undervalued. Although the Fund will not concentrate its investments in any one industry or industry group, it may, like many value funds, weight its investments toward certain industries, thus increasing its exposure to factors adversely affecting issuers within those industries.
16
Diversification does not assure a profit nor protect against loss in a declining market. Earnings growth is not representative of the Fund’s future performance.
Opinions expressed are those of the Investment Manager, are subject to change, are not guaranteed, and should not be considered investment advice.
Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security. For a complete list of fund holdings, please refer to the Schedule of Investments section of this report.
It is not possible to invest directly in an index.
The Ziegler Piermont Small Cap Value Fund is distributed by Quasar Distributors, LLC
17
Ziegler Piermont Small Cap Value Fund | ||||
ALLOCATION OF PORTFOLIO HOLDINGS | ||||
(Calculated as a percentage of Total Investments) | ||||
March 31, 2021 (Unaudited) |
![](https://capedge.com/proxy/N-CSRSA/0000894189-22-000153/image00002.jpg)
18
Ziegler Piermont Small Cap Value Fund | |||||||
SCHEDULE OF INVESTMENTS | |||||||
March 31, 2021 (Unaudited) | |||||||
Shares | Value | ||||||
COMMON STOCKS ― 89.5% | |||||||
AEROSPACE PRODUCT AND PARTS MANUFACTURING ― 0.5% | |||||||
303 | Kaman Corp. | $ | 15,541 | ||||
ALL OTHER ELECTRICAL EQUIPMENT AND COMPONENT MANUFACTURING ― 1.1% | |||||||
1,102 | Lydall, Inc. * | 37,181 | |||||
ALL OTHER MISCELLANEOUS MANUFACTURING ― 0.9% | |||||||
607 | Hillenbrand, Inc. | 28,960 | |||||
ALUMINA AND ALUMINUM PRODUCTION AND PROCESSING ― 1.4% | |||||||
1,415 | Alcoa Corp. * | 45,973 | |||||
AUDIO AND VIDEO EQUIPMENT MANUFACTURING ― 0.9% | |||||||
1,440 | Knowles Corp. * | 30,125 | |||||
BUSINESS TO BUSINESS ELECTRONIC MARKETS ― 1.2% | |||||||
395 | ePlus, Inc. * | 39,358 | |||||
COMMERCIAL AND INSTITUTIONAL BUILDING CONSTRUCTION ― 1.0% | |||||||
405 | McGrath RentCorp | 32,663 | |||||
COMMERCIAL BANKING ― 16.0% | |||||||
1,994 | Associated Banc-Corp | 42,552 | |||||
1,509 | Bancorp Inc/The * | 31,266 | |||||
690 | Banner Corp. | 36,798 | |||||
1,154 | Central Pacific Financial Corp. | 30,789 | |||||
684 | Eagle Bancorp, Inc. | 36,396 | |||||
834 | First Bancshares Inc/The | 30,533 | |||||
40 | First Citizens BancShares Inc/NC | 33,431 | |||||
603 | First Financial Corp/IN | 27,141 | |||||
584 | First Interstate BancSystem, Inc. | 26,887 | |||||
790 | Heartland Financial USA, Inc. | 39,705 | |||||
1,359 | Independent Bank Corp/MI | 32,127 | |||||
608 | TriCo Bancshares | 28,801 | |||||
1,268 | Trustmark Corp. | 42,681 | |||||
515 | UMB Financial Corp. | 47,549 | |||||
1,385 | United Community Banks Inc/GA | 47,255 | |||||
533,911 | |||||||
COMPUTER AND COMPUTER PERIPHERAL EQUIPMENT AND SOFTWARE MERCHANT WHOLESALERS ― 1.0% | |||||||
351 | Insight Enterprises, Inc. * | 33,492 | |||||
COMPUTER SYSTEMS DESIGN AND RELATED SERVICES ― 1.1% | |||||||
811 | Sykes Enterprises, Inc. * | 35,748 | |||||
COPPER ROLLING, DRAWING, EXTRUDING, AND ALLOYING ― 1.0% | |||||||
844 | Mueller Industries, Inc. | 34,899 | |||||
19
Ziegler Piermont Small Cap Value Fund | |||||||
SCHEDULE OF INVESTMENTS | |||||||
March 31, 2021 (Unaudited)(Continued) | |||||||
Shares | Value | ||||||
CRUDE PETROLEUM EXTRACTION ― 2.5% | |||||||
1,573 | Bonanza Creek Energy, Inc. * | $ | 56,203 | ||||
1,220 | Matador Resources Co. | 28,609 | |||||
84,812 | |||||||
DATA PROCESSING, HOSTING, AND RELATED SERVICES ― 0.8% | |||||||
741 | NCR Corp. * | 28,121 | |||||
DIRECT INSURANCE (EXCEPT LIFE, HEALTH, AND MEDICAL) CARRIERS ― 2.2% | |||||||
700 | Mercury General Corp. | 42,568 | |||||
613 | Stewart Information Services Corp. | 31,894 | |||||
74,462 | |||||||
DIRECT LIFE, HEALTH, AND MEDICAL INSURANCE CARRIERS ― 1.3% | |||||||
746 | American Equity Investment Life Holding Co. | 23,521 | |||||
78 | National Western Life Group, Inc. | 19,422 | |||||
42,943 | |||||||
ELECTRICAL EQUIPMENT MANUFACTURING ― 0.9% | |||||||
217 | Regal Beloit Corp. | 30,962 | |||||
ENGINE, TURBINE, AND POWER TRANSMISSION EQUIPMENT MANUFACTURING ― 0.6% | |||||||
372 | Altra Industrial Motion Corp. | 20,579 | |||||
FAMILY CLOTHING STORES ― 1.4% | |||||||
1,362 | Abercrombie & Fitch Co. * | 46,730 | |||||
FRUIT AND VEGETABLE CANNING, PICKLING, AND DRYING ― 0.7% | |||||||
475 | Seneca Foods Corp. * | 22,368 | |||||
GENERAL FREIGHT TRUCKING, LONG-DISTANCE ― 0.9% | |||||||
1,580 | Heartland Express, Inc. | 30,936 | |||||
HEAVY DUTY TRUCK MANUFACTURING ― 0.9% | |||||||
774 | Federal Signal Corp. | 29,644 | |||||
HOTELS (EXCEPT CASINO HOTELS) AND MOTELS ― 1.4% | |||||||
770 | Travel + Leisure Co. | 47,093 | |||||
INVESTMENT BANKING AND SECURITIES DEALING ― 1.1% | |||||||
331 | Piper Sandler Cos | 36,294 | |||||
IRON AND STEEL MILLS AND FERROALLOY MANUFACTURING ― 1.0% | |||||||
1,050 | Commercial Metals Co. | 32,382 | |||||
LESSORS OF NONRESIDENTIAL BUILDINGS (EXCEPT MINIWAREHOUSES) ― 6.9% | |||||||
2,198 | Apple Hospitality REIT, Inc. | 32,025 | |||||
2,246 | Armada Hoffler Properties, Inc. | 28,165 | |||||
2,383 | Chatham Lodging Trust * | 31,360 | |||||
1,343 | Corporate Office Properties Trust | 35,361 |
20
Ziegler Piermont Small Cap Value Fund | |||||||
SCHEDULE OF INVESTMENTS | |||||||
March 31, 2021 (Unaudited)(Continued) | |||||||
Shares | Value | ||||||
LESSORS OF NONRESIDENTIAL BUILDINGS (EXCEPT MINIWAREHOUSES) ― 6.9% | |||||||
1,510 | Global Net Lease, Inc. | $ | 27,271 | ||||
785 | Physicians Realty Trust | 13,871 | |||||
815 | STAG Industrial, Inc. | 27,392 | |||||
1,816 | UMH Properties, Inc. | 34,813 | |||||
230,258 | |||||||
MANAGEMENT CONSULTING SERVICES ― 0.9% | |||||||
371 | Insperity, Inc. | 31,068 | |||||
MANAGEMENT OF COMPANIES AND ENTERPRISES ― 4.7% | |||||||
976 | Hawaiian Electric Industries, Inc. | 43,364 | |||||
451 | NorthWestern Corp. | 29,405 | |||||
219 | SJW Group | 13,795 | |||||
332 | Southwest Gas Holdings, Inc. | 22,812 | |||||
378 | Spire, Inc. | 27,930 | |||||
438 | Unitil Corp. | 20,012 | |||||
157,318 | |||||||
MATERIAL HANDLING EQUIPMENT MANUFACTURING ― 0.8% | |||||||
521 | Columbus McKinnon Corp/NY | 27,488 | |||||
MEDICAL EQUIPMENT AND SUPPLIES MANUFACTURING ― 0.4% | |||||||
588 | Hanger, Inc. * | 13,418 | |||||
MEDICAL, DENTAL, AND HOSPITAL EQUIPMENT AND SUPPLIES MERCHANT WHOLESALERS ― 1.5% | |||||||
79 | ICU Medical, Inc. * | 16,230 | |||||
921 | Owens & Minor, Inc. | 34,620 | |||||
50,850 | |||||||
METAL CAN, BOX, AND OTHER METAL CONTAINER (LIGHT GAUGE) MANUFACTURING ― 0.9% | |||||||
543 | Greif, Inc. | 30,951 | |||||
METAL VALVE MANUFACTURING ― 0.7% | |||||||
197 | Curtiss-Wright Corp. | 23,364 | |||||
NEW CAR DEALERS ― 1.2% | |||||||
837 | Sonic Automotive, Inc. | 41,490 | |||||
NEWSPAPER PUBLISHERS ― 1.0% | |||||||
62 | Graham Holdings Co. | 34,871 | |||||
21
Ziegler Piermont Small Cap Value Fund | |||||||
SCHEDULE OF INVESTMENTS | |||||||
March 31, 2021 (Unaudited)(Continued) | |||||||
Shares | Value | ||||||
NURSING CARE FACILITIES (SKILLED NURSING FACILITIES) ― 2.1% | |||||||
298 | National HealthCare Corp. | $ | 23,217 | ||||
4,185 | New Senior Investment Group, Inc. | 26,073 | |||||
1,161 | Sabra Health Care REIT, Inc. | 20,155 | |||||
69,445 | |||||||
OIL AND GAS PIPELINE AND RELATED STRUCTURES CONSTRUCTION ― 0.8% | |||||||
3,030 | Antero Midstream Corp. | 27,361 | |||||
OTHER BASIC INORGANIC CHEMICAL MANUFACTURING ― 2.0% | |||||||
519 | Cabot Corp. | 27,216 | |||||
530 | Minerals Technologies, Inc. | 39,920 | |||||
67,136 | |||||||
OTHER BUILDING MATERIAL DEALERS ― 0.7% | |||||||
959 | Lumber Liquidators Holdings, Inc. * | 24,090 | |||||
OTHER CUT AND SEW APPAREL MANUFACTURING ― 1.3% | |||||||
1,462 | G-III Apparel Group Ltd. * | 44,065 | |||||
OTHER DIRECT SELLING ESTABLISHMENTS ― 0.9% | |||||||
559 | Nu Skin Enterprises, Inc. | 29,566 | |||||
OTHER FINANCIAL VEHICLES ― 3.9% | |||||||
5,574 | Capstead Mortgage Corp. | 34,726 | |||||
360 | Community Healthcare Trust, Inc. | 16,603 | |||||
1,861 | Dynex Capital, Inc. | 35,228 | |||||
1,366 | Primoris Services Corp. | 45,255 | |||||
131,812 | |||||||
OTHER HEALTH AND PERSONAL CARE STORES ― 0.7% | |||||||
1,290 | Natural Grocers by Vitamin Cottage, Inc. | 22,640 | |||||
OTHER HOME FURNISHINGS STORES ― 1.5% | |||||||
1,721 | At Home Group, Inc. * | 49,393 | |||||
PAPER MILLS - 0.6% | |||||||
530 | Clearwater Paper Corp. * | 19,939 | |||||
PESTICIDE AND OTHER AGRICULTURAL CHEMICAL MANUFACTURING ― 0.6% | |||||||
783 | Phibro Animal Health Corp. | 19,105 | |||||
PHARMACEUTICAL AND MEDICINE MANUFACTURING ― 2.1% | |||||||
1,351 | Coherus Biosciences, Inc. * | 19,738 | |||||
411 | FibroGen, Inc. * | 14,266 | |||||
663 | Supernus Pharmaceuticals, Inc. * | 17,357 | |||||
22
Ziegler Piermont Small Cap Value Fund | |||||||
SCHEDULE OF INVESTMENTS | |||||||
March 31, 2021 (Unaudited)(Continued) | |||||||
Shares | Value | ||||||
PHARMACEUTICAL AND MEDICINE MANUFACTURING ― 2.1% (Continued) | |||||||
1,298 | Vanda Pharmaceuticals, Inc. * | $ | 19,496 | ||||
70,857 | |||||||
PLATE WORK AND FABRICATED STRUCTURAL PRODUCT MANUFACTURING ― 1.0% | |||||||
143 | Valmont Industries, Inc. | 33,987 | |||||
PORTFOLIO MANAGEMENT ― 1.0% | |||||||
621 | Artisan Partners Asset Management, Inc. | 32,398 | |||||
RADIO AND TELEVISION BROADCASTING AND WIRELESS COMMUNICATIONS EQUIPMENT MANUFACTURING ― 0.8% | |||||||
1,028 | Comtech Telecommunications Corp. | 25,536 | |||||
REINSURANCE CARRIERS ― 1.5% | |||||||
1,464 | Mr Cooper Group, Inc. * | 50,889 | |||||
RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES ― 0.6% | |||||||
459 | Anika Therapeutics, Inc. * | 18,722 | |||||
RESIDENTIAL BUILDING CONSTRUCTION ― 2.0% | |||||||
581 | M/I Homes, Inc. * | 34,320 | |||||
350 | Meritage Homes Corp. * | 32,172 | |||||
66,492 | |||||||
RESTAURANTS AND OTHER EATING PLACES ― 0.6% | |||||||
1,737 | Fiesta Restaurant Group, Inc. * | 21,869 | |||||
SAVINGS INSTITUTIONS ― 1.4% | |||||||
1,025 | Flagstar Bancorp, Inc. | 46,228 | |||||
SEMICONDUCTOR AND OTHER ELECTRONIC COMPONENT MANUFACTURING ― 1.4% | |||||||
2,032 | Amkor Technology, Inc. | 48,180 | |||||
SEMICONDUCTOR AND OTHER ELECTRONIC COMPONENT MANUFACTURING ― 1.1% | |||||||
1,864 | Rambus, Inc. * | 36,236 | |||||
SHOE STORES - 1.4% | |||||||
854 | Foot Locker, Inc. | 48,038 | |||||
SPORTING GOODS STORES ― 0.8% | |||||||
344 | Dick's Sporting Goods, Inc. | 26,196 | |||||
23
Ziegler Piermont Small Cap Value Fund | |||||||
SCHEDULE OF INVESTMENTS | |||||||
March 31, 2021 (Unaudited)(Continued) | |||||||
Shares | Value | ||||||
SPRING AND WIRE PRODUCT MANUFACTURING ― 0.4% | |||||||
271 | Barnes Group, Inc. | $ | 13,425 | ||||
SUPERMARKETS AND OTHER GROCERY (EXCEPT CONVENIENCE) STORES ― 1.0% | |||||||
563 | Ingles Markets, Inc. | 34,708 | |||||
SUPPORT ACTIVITIES FOR MINING ― 1.9% | |||||||
3,519 | Archrock, Inc. | 33,396 | |||||
2,655 | Liberty Oilfield Services, Inc. * | 29,975 | |||||
63,371 | |||||||
TELEVISION BROADCASTING ― 1.0% | |||||||
1,749 | Gray Television, Inc. | 32,182 | |||||
TIRE MANUFACTURING ― 1.5% | |||||||
2,825 | Goodyear Tire & Rubber Co/The * | 49,635 | |||||
WIRING DEVICE MANUFACTURING ― 0.9% | |||||||
612 | AZZ, Inc. | 30,814 | |||||
WOOD KITCHEN CABINET AND COUNTERTOP MANUFACTURING ― 0.9% | |||||||
298 | American Woodmark Corp. * | 29,377 | |||||
WAREHOUSE CLUBS AND SUPERCENTERS ― 1.1% | |||||||
547 | Big Lots, Inc. | 37,360 | |||||
TOTAL COMMON STOCKS (Cost $2,643,804) | $ | 3,357,305 | |||||
SHORT TERM INVESTMENT ― 0.3% | |||||||
8,690 | Short-Term Investments Trust - Government & Agency Portfolio - Institutional Class, 0.030% (1) | 8,690 | |||||
TOTAL SHORT TERM INVESTMENT (Cost $8,690) | $ | 8,690 | |||||
TOTAL INVESTMENTS ― 100.6% (Cost $2,652,494) | 3,365,995 | ||||||
Liabilities in Excess of Other Assets ― (0.6)% | (19,321 | ) | |||||
TOTAL NET ASSETS ― 100.0% | $ | 3,346,674 |
Percentages are stated as a percent of net assets. | ||||
* | Non income producing. | |||
(1) | Rate quoted is seven-day yield at period end. | |||
The accompanying notes are an integral part of these financial statements. | ||||
24
Ziegler Piermont Small Cap Value Fund | ||||
STATEMENT OF ASSETS AND LIABILITIES | ||||
March 31, 2021 (Unaudited) | ||||
Assets: | ||||
Investments in securities at value (cost $2,652,494) | $ | 3,365,995 | ||
Receivables: | ||||
Due from Investment Adviser | 13,966 | |||
Dividends and interest | 4,135 | |||
Prepaid expenses | 16,456 | |||
Total assets | 3,400,552 | |||
Liabilities: | ||||
Accrued expenses and other liabilities | 53,878 | |||
Total liabilities | 53,878 | |||
Net Assets | $ | 3,346,674 | ||
Components of Net Assets: | ||||
Paid-in capital | $ | 2,363,259 | ||
Total accumulated gain | 983,415 | |||
Net Assets | $ | 3,346,674 | ||
Institutional Class: | ||||
Net Assets | $ | 3,346,674 | ||
Issued and Outstanding | 88,647 | |||
Net Asset Value, Redemption Price and Offering Price Per Share | $ | 37.75 | ||
The accompanying notes are an integral part of these financial statements.
25
Ziegler Piermont Small Cap Value Fund | ||||
STATEMENT OF OPERATIONS | ||||
For the Six Months Ended March 31, 2021 (Unaudited) | ||||
Investment Income: | ||||
Dividend and interest income | $ | 37,117 | ||
Interest income | 3 | |||
Total investment income | 37,120 | |||
Expenses: | ||||
Administration and fund accounting fees (Note 3) | 27,908 | |||
Registration fees | 14,141 | |||
Advisory fees (Note 3) | 10,766 | |||
Legal fees | 10,014 | |||
Trustee fees (Note 3) | 8,343 | |||
Audit fees | 7,730 | |||
Compliance fees (Note 3) | 6,224 | |||
Shareholder reporting fees | 5,614 | |||
Custody fees (Note 3) | 5,294 | |||
Transfer agent fees and expenses (Note 3) | 4,932 | |||
Service Fee | 718 | |||
Miscellaneous expenses | 3,430 | |||
Total expenses | 106,361 | |||
Expenses waived and reimbursed by the Adviser (Note 3) | (93,443 | ) | ||
Net expenses | 12,918 | |||
Net investment income | 24,202 | |||
Realized and Unrealized Gain on Investments | ||||
Net realized gain on investments | 267,766 | |||
Net change in unrealized appreciation/depreciation on investments | 768,298 | |||
Net realized and unrealized gain on investments | 1,036,064 | |||
Net increase in net assets resulting from operations | $ | 1,060,266 | ||
The accompanying notes are an integral part of these financial statements.
26
Ziegler Piermont Small Cap Value Fund | ||||||||
STATEMENT OF CHANGES IN NET ASSETS | ||||||||
For the Six Months Ended March 31, 2021 (Unaudited) | For the Period July 21, 2020* through September 30, 2020 | |||||||
Increase (Decrease) in Net Assets from: | ||||||||
Operations: | ||||||||
Net investment income | $ | 24,202 | $ | 1,295 | ||||
Net realized gain (loss) on investments | 267,766 | (1,061 | ) | |||||
Net change in unrealized appreciation/depreciation on investments | 768,298 | (54,797 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 1,060,266 | (54,563 | ) | |||||
Distributions to shareholders: | ||||||||
Net investment income ** | (22,288 | ) | - | |||||
Total distributions to shareholders | (22,288 | ) | - | |||||
Capital Transactions: | ||||||||
Net proceeds from shares sold | 2,245,265 | 1,190,723 | ||||||
Reinvestment of distributions | 21,105 | - | ||||||
Cost of shares repurchased | (1,093,834 | ) | - | |||||
Net increase in net assets from capital transactions | 1,172,536 | 1,190,723 | ||||||
Total Increase in Net Assets | 2,210,514 | 1,136,160 | ||||||
Net Assets: | ||||||||
Beginning of period | 1,136,160 | - | ||||||
End of period | $ | 3,346,674 | $ | 1,136,160 | ||||
Capital Share Transactions: | ||||||||
Shares sold | 72,464 | 46,311 | ||||||
Shares reinvested | 673 | - | ||||||
Shares repurchased | (30,801 | ) | - | |||||
Net increase in shares outstanding | 42,336 | 46,311 | ||||||
* Commencement of operations on July 21, 2020 | ||||||||
** Includes net realized gain on investments sold. | ||||||||
The accompanying notes are an integral part of these financial statements.
27
Ziegler Piermont Small Cap Value Fund | |||||
FINANCIAL HIGHLIGHTS | |||||
Institutional Class | |||||
Per Share Data for a Share Outstanding Throughout the Period Presented. | |||||
For the Six Months Ended March 31, 2021 (Unaudited) | For the Period July 21, 2020* Through September 30, 2020 | ||||
Net Asset Value, Beginning of Period | $24.53 | $25.00 | |||
INCOME FROM INVESTMENT OPERATIONS: | |||||
Net investment income(1) | 0.28 | 0.05 | |||
Net realized and unrealized gain (loss) on investments | 13.13 | (0.52) | |||
Total Loss from Investment Operations | 13.41 | (0.47) | |||
LESS DISTRIBUTIONS: | |||||
From net investment income | (0.15) | - | |||
From net realized gain on investments | (0.04) | - | |||
Total Distributions | (0.19) | 0.00 | |||
Net Asset Value, End of Period | $37.75 | $24.53 | |||
Total Return | 54.87% | (2) | -1.88% | (2) | |
SUPPLEMENTAL DATA AND RATIOS: | |||||
Net assets, end of period (in thousands) | $3,347 | $1,136 | |||
Ratio of expenses to average net assets | |||||
Before fees waived / reimbursed by the Adviser | 7.41% | (3) | 49.72% | (3) | |
After fees waived / reimbursed by the Adviser | 0.90% | (3) | 0.90% | (3) | |
Ratio of net investment income to average net assets | |||||
After fees waived / reimbursed by the Adviser | 1.69% | (3) | 1.11% | (3) | |
Portfolio turnover rate | 65% | (2) | 20% | (2) | |
* | Commencement of operations on July 21, 2020 | ||||
1 | Computed using average shares method. | ||||
2 | Not Annualized. | ||||
3 | Annualized. |
The accompanying notes are an integral part of these financial statements.
28
Ziegler FAMCO Hedged Equity Fund
Semi-Annual Period Ending March 31, 2021
Dear Shareholder:
We are pleased to present you with the Semi-Annual Report for the Ziegler FAMCO Hedged Equity Fund for the six-month period ending March 31, 2021 (the “Reporting Period”).
During the Reporting Period, the USCA Premium Buy-Write Fund, now the Ziegler FAMCO Hedged Equity Fund (the “Fund”) returned 11.1%, generating 58% of the upside capture of the S&P 500 return of 19.1%. Importantly, the fund produced what we consider to be a superior return per unit of risk as the standard deviation of the fund’s return was 9.1%, just 43% of the standard deviation of the S&P 500. Additionally, the Fund underperformed the CBOE Buy/Write Index return of 13.7%.
It should be noted that the six-month periods occurred during the transition of the Fund’s strategy from a covered call strategy employed on individual stocks and ETFs to a hedged equity strategy which invests in a portfolio of large cap stocks designed to closely follow the performance of the S&P 500 Index, accompanied by an S&P 500 Index-based hedging strategy that includes selling calls and buying puts for immediate downside protection.
Market Environment
The economy and stock market reacted positively during the fourth quarter 2020, following the November 9th announcement of successful COVID vaccine trials. Election uncertainty was partially put to rest in the weeks following the November 3rd election, but was finalized in January following the two Georgia Senate run-off elections.
The potential for a reopening of the economy in 2021 likely created an equity market rally and a shift that favored cyclical value stocks, which outperformed growth and technology stocks beginning on November 9, 2021 and continuing through March 31, 2021. During the first half of the reporting period (fourth quarter 2020), this trend enhanced the returns of the stocks in the Fund relative to the Index.
The US Treasury 10 year yield started the period (Oct 1, 2020) at .67% and ended it at 1.75%. While still low, a 108 basis point rise in yields is meaningful. We believe this also helps explain the outperformance of cyclical vs growth. Rising yields suggest inflation expectations are picking up, which benefit shorter duration investments like industrials, materials, financials and energy. Historically, growth stocks tend to perform well when inflation expectations are falling.
Performance Discussion
As one would expect, the sold call options in the Fund in both periods, truncated upside capture. However, there were periods within the overall rally where the stock market declined and the hedging strategy which was implemented in late December, reduced downside participation during these periods. Notably, during the period from February 12th to March 4th, the S&P 500 fell 4.23% while the Fund only captured about ¼ of the downside, falling just 1.14%.
Looking Ahead
According to Bloomberg, S&P 500 earnings per share are expected to surpass peak pre-COVID earnings by more than 9% this year. The resulting 2021 P/E ratio for the S&P 500 is an above average 23.8%. Market participants have focused mainly on the positives in recent months. Fiscal stimulus, post-pandemic reopening, and historically low interest rates may continue to create a constructive environment for equity investors. However, structural budget deficits and increased deficit spending on stimulus may be pushing interest rates higher as the supply of Treasury bonds increases. In addition, there is the potential for higher tax rates in order to finance the trillions of dollars in stimulus spending. This could eventually create a negative backdrop for both stocks and bonds when the stimulus honeymoon period ends.
29
U.S. economic growth is expected to strengthen throughout the year, supported by unprecedented levels of fiscal and monetary stimulus. The successful rollout of vaccines has fueled optimism that the U.S. economy can fully reopen in the second half of this year. Forecasters are looking for U.S. RGDP growth to reach around 7.0% in the second half of 2021 before tapering off to a more sustainable level of 3.0% to 4.0% growth in 2022.
Consumer confidence strengthened in the first quarter, as the vaccine rollout fueled optimism over improving business conditions, reopening of the economy, and hopes for further job creation. The pandemic has exacerbated income disparity, hurting many lower income people employed in the services industry. However, the transfer payments provided by the government to those on the lower end of the recovery, coupled with an overall high savings rate, and pent-up demand, leaves consumers in a good position to spend once the economy fully reopens.
The Fed’s focus on employment, coupled with their view that any increase in inflation should be transitory, will reinforce its commitment not to raise rates for the foreseeable future. However, faster-than-expected inflation could force the Federal Reserve to raise short-term interest rates, which would eventually weigh on business investment and overall economic growth. To summarize, a lot of good news is priced into the market. There could be risks for equity investors on the horizon, such as higher tax rates, growing government deficits, increasing inflation expectations, and missed earnings forecasts, to name a few. There are also still unknowns regarding COVID variants and how long immunity will last following vaccination. There is also a risk of a continuation of rising interest rates and a steeper yield curve.
We believe the Ziegler FAMCO Hedged Equity Fund is an attractive opportunity for investors who want exposure to equities but are concerned about risks which may impact the stock market in the coming year.
We appreciate your investment in the Ziegler FAMCO Hedged Equity Fund.
Sincerely,
Wiley Angell Senior Portfolio Manager | Davis Rushing Senior Portfolio Manager | |
Kelly Rushing Senior Portfolio Manager |
Past performance is not a guarantee of future results.
Must be preceded or accompanied by a prospectus.
Opinions expressed are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security. Please see the schedule of investments section in this report for a full listing of the Fund’s holdings.
The Ziegler FAMCO Hedged Equity Fund is distributed by Quasar Distributors, LLC.
Mutual fund investing involves risk. Principal loss is possible. There is no assurance that the Ziegler FAMCO Hedged Equity Fund will achieve its investment objectives. Selling covered call or stock index options will limit the fund's gain, if any, on its underlying securities and the fund continues to bear the risk of a decline in the value of its underlying stocks. There is no guarantee that the strategy will achieve its objectives, generate profits or avoid losses. The use of covered call strategies does not ensure profits or guarantee against losses. Past performance is no assurance of future results.
30
The Fund risk management process includes an effort to monitor and manage risk, but does not imply low risk.
Must be preceded or accompanied by a prospectus.
S&P 500 Index. The S&P 500 Index is weighted by market value, and its performance is thought to be representative of the stock market as a whole. The S&P 500 Index was created in 1957, although it has been extrapolated backwards to several decades earlier for performance comparison purposes. This index provides a broad snapshot of the overall U.S. equity market; in fact, over 70% of all U.S. equity is tracked by the S&P 500 Index. The index selects its companies based upon their market size, liquidity, and sector. The S&P 500 Index is a market-weighted index.
CBOE BuyWrite Index. The CBOE BuyWrite Index is a passive total return index based on (1) buying an S&P 500 stock index portfolio, and (2) "writing" (or selling) the near-term S&P 500 Index (SPXSM) "covered" call option, generally on the third Friday of each month. The S&P call written will have about one month remaining to expiration, with an exercise price just above the prevailing index level (i.e., slightly out-of-the-money). The S&P call is held until expiration and cash settled, at which time a new one-month, slightly out-of-the-money call is written.
It is not possible to invest directly in this index.
31
Ziegler FAMCO Hedged Equity Fund | |||||
ALLOCATION OF PORTFOLIO HOLDINGS | |||||
(Calculated as a percentage of Total Investments) | |||||
March 31, 2021 (Unaudited) |
![](https://capedge.com/proxy/N-CSRSA/0000894189-22-000153/image00003.jpg)
32
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited) |
Shares | Value | ||||||
COMMON STOCKS ― 100.0% | |||||||
ACCOUNTING, TAX PREPARATION, BOOKKEEPING, AND PAYROLL SERVICES ― 0.2% | |||||||
904 | Paychex, Inc. | $ | 88,610 | ||||
ADVERTISING AGENCIES ― 0.2% | |||||||
904 | Omnicom Group, Inc. | 67,032 | |||||
AEROSPACE PRODUCT AND PARTS MANUFACTURING ― 1.5% | |||||||
858 | Boeing Co./The * | 218,550 | |||||
7,442 | General Electric Co. | 97,713 | |||||
3,661 | Raytheon Technologies Corp. | 282,885 | |||||
599,148 | |||||||
AGRICULTURAL IMPLEMENT MANUFACTURING ― 0.2% | |||||||
253 | Deere & Co. | 94,657 | |||||
ALL OTHER ELECTRICAL EQUIPMENT AND COMPONENT MANUFACTURING ― 0.8% | |||||||
3,279 | Emerson Electric Co. | 295,832 | |||||
AUTOMOBILE AND LIGHT DUTY MOTOR VEHICLE MANUFACTURING ― 1.8% | |||||||
1,383 | General Motors Co. * | 79,467 | |||||
907 | Tesla, Inc. * | 605,813 | |||||
685,280 | |||||||
BREAKFAST CEREAL MANUFACTURING ― 0.1% | |||||||
880 | General Mills, Inc. | 53,962 | |||||
CABLE AND OTHER SUBSCRIPTION PROGRAMMING ― 0.1% | |||||||
77 | Charter Communications, Inc. * | 47,511 | |||||
CARPET AND RUG MILLS ― 0.2% | |||||||
504 | Mohawk Industries, Inc. * | 96,924 | |||||
CASINO HOTELS ― 0.7% | |||||||
844 | Las Vegas Sands Corp. * | 51,281 | |||||
5,639 | MGM Resorts International | 214,226 | |||||
265,507 | |||||||
COMMERCIAL AND SERVICE INDUSTRY MACHINERY MANUFACTURING ― 1.0% | |||||||
2,826 | Dover Corp. | 387,529 | |||||
COMMERCIAL BANKING ― 4.7% | |||||||
16,569 | Bank of America Corp. | 641,055 | |||||
4,748 | Citigroup, Inc. | 345,417 | |||||
2,826 | JPMorgan Chase & Co. | 430,202 | |||||
433 | M&T Bank Corp. | 65,647 | |||||
106 | SVB Financial Group * | 52,328 |
33
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited)(Continued) |
Shares | Value | ||||||
COMMERCIAL BANKING ― 4.7% (Continued) | |||||||
1,374 | Truist Financial Corp. | $ | 80,132 | ||||
1,155 | U.S. Bancorp | 63,883 | |||||
4,236 | Wells Fargo & Co. | 165,500 | |||||
1,844,164 | |||||||
COMPUTER AND PERIPHERAL EQUIPMENT MANUFACTURING ― 5.5% | |||||||
17,601 | Apple, Inc. | 2,149,961 | |||||
COMPUTER SYSTEMS DESIGN AND RELATED SERVICES ― 1.1% | |||||||
452 | Autodesk, Inc. * | 125,272 | |||||
613 | Cognizant Technology Solutions Corp. | 47,888 | |||||
339 | MSCI, Inc. | 142,135 | |||||
451 | Synopsys, Inc. * | 111,749 | |||||
427,044 | |||||||
CONSTRUCTION MACHINERY MANUFACTURING ― 1.3% | |||||||
2,253 | Caterpillar, Inc. | 522,403 | |||||
COPPER, NICKEL, LEAD, AND ZINC MINING ― 0.3% | |||||||
3,712 | Freeport-McMoRan, Inc. * | 122,236 | |||||
COURIERS AND EXPRESS DELIVERY SERVICES ― 0.9% | |||||||
678 | FedEx Corp. | 192,580 | |||||
878 | United Parcel Service, Inc. | 149,251 | |||||
341,831 | |||||||
CREDIT BUREAUS ― 0.2% | |||||||
226 | Moody's Corp. | 67,486 | |||||
CREDIT CARD ISSUING ― 0.4% | |||||||
647 | American Express Co. | 91,512 | |||||
634 | Capital One Financial Corp. | 80,664 | |||||
172,176 | |||||||
CRUDE PETROLEUM EXTRACTION ― 0.2% | |||||||
2,716 | Occidental Petroleum Corp. | 72,300 | |||||
DATA PROCESSING, HOSTING, AND RELATED SERVICES ― 1.3% | |||||||
452 | Akamai Technologies, Inc. * | 46,059 | |||||
1,357 | Automatic Data Processing, Inc. | 255,753 | |||||
452 | Broadridge Financial Solutions, Inc. | 69,201 | |||||
1,289 | Fiserv, Inc. * | 153,443 | |||||
524,456 | |||||||
DEPARTMENT STORES ― 0.2% | |||||||
923 | TJX Cos Inc./The | 61,056 | |||||
DIRECT INSURANCE (EXCEPT LIFE, HEALTH, AND MEDICAL) CARRIERS ― 2.3% | |||||||
2,148 | American International Group, Inc. | 99,259 | |||||
1,536 | Berkshire Hathaway, Inc. * | 392,402 |
34
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited)(Continued) |
Shares | Value | ||||||
DIRECT INSURANCE (EXCEPT LIFE, HEALTH, AND MEDICAL) CARRIERS ― 2.3% (Continued) | |||||||
1,244 | Chubb Ltd. (1) | $ | 196,515 | ||||
971 | Cincinnati Financial Corp. | 100,100 | |||||
791 | Travelers Companies, Inc./The | 118,966 | |||||
907,242 | |||||||
DIRECT LIFE, HEALTH, AND MEDICAL INSURANCE CARRIERS ― 2.7% | |||||||
2,007 | Centene Corp. * | 128,267 | |||||
526 | Cigna Corp. | 127,155 | |||||
1,306 | Hartford Financial Services Group Inc./The | 87,228 | |||||
2,826 | MetLife, Inc. | 171,793 | |||||
1,466 | UnitedHealth Group, Inc. | 545,455 | |||||
1,059,898 | |||||||
DOLL, TOY, AND GAME MANUFACTURING ― 0.1% | |||||||
592 | Hasbro, Inc. | 56,903 | |||||
ELECTRIC POWER GENERATION ― 0.2% | |||||||
2,305 | AES Corp./The | 61,797 | |||||
ELECTRONIC SHOPPING AND MAIL-ORDER HOUSES ― 4.1% | |||||||
495 | Amazon.com, Inc. * | 1,531,569 | |||||
252 | Etsy, Inc. * | 50,821 | |||||
1,582,390 | |||||||
EXTERMINATING AND PEST CONTROL SERVICES ― 0.1% | |||||||
1,696 | Rollins, Inc. | 58,376 | |||||
FERTILIZER MANUFACTURING ― 0.1% | |||||||
1,387 | Mosaic Co./The | 43,843 | |||||
FINANCIAL TRANSACTIONS PROCESSING, RESERVE, AND CLEARINGHOUSE ACTIVITIES ― 2.9% | |||||||
1,341 | Fidelity National Information Services, Inc. | 188,558 | |||||
810 | Global Payments, Inc. | 163,280 | |||||
1,206 | Mastercard, Inc. | 429,396 | |||||
1,696 | Visa, Inc. | 359,094 | |||||
1,140,328 | |||||||
FOOTWEAR MANUFACTURING ― 0.8% | |||||||
2,487 | NIKE, Inc. | 330,497 | |||||
FRUIT AND VEGETABLE CANNING, PICKLING, AND DRYING ― 0.2% | |||||||
497 | JM Smucker Co./The | 62,885 | |||||
GENERAL MEDICAL AND SURGICAL HOSPITALS ― 0.5% | |||||||
797 | HCA Healthcare, Inc. | 150,107 | |||||
470 | Universal Health Services, Inc. | 62,693 | |||||
212,800 |
35
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited)(Continued) |
Shares | Value | ||||||
GENERAL MERCHANDISE STORES, INCLUDING WAREHOUSE CLUBS AND SUPERCENTERS ― 1.9% | |||||||
1,249 | Costco Wholesale Corp. | $ | 440,248 | ||||
766 | Target Corp. | 151,722 | |||||
1,244 | Wal-Mart, Inc. | 168,973 | |||||
760,943 | |||||||
HEAVY DUTY TRUCK MANUFACTURING ― 0.2% | |||||||
927 | PACCAR, Inc. | 86,137 | |||||
HOME CENTERS ― 1.4% | |||||||
1,505 | Home Depot Inc./The | 459,401 | |||||
479 | Lowe's Cos, Inc. | 91,096 | |||||
550,497 | |||||||
HOME HEALTH CARE SERVICES ― 0.2% | |||||||
130 | Intuitive Surgical, Inc. * | 96,062 | |||||
HOTELS (EXCEPT CASINO HOTELS) AND MOTELS ― 0.3% | |||||||
437 | Hilton Worldwide Holdings, Inc. * | 52,842 | |||||
502 | Marriott International Inc/MD * | 74,351 | |||||
127,193 | |||||||
INDUSTRIAL GAS MANUFACTURING ― 0.7% | |||||||
917 | Linde PLC (1) | 256,888 | |||||
INDUSTRIAL MACHINERY MANUFACTURING ― 0.5% | |||||||
750 | Applied Materials, Inc. | 100,200 | |||||
122 | KLA Corp. | 40,309 | |||||
120 | Lam Research Corp. | 71,429 | |||||
211,938 | |||||||
INTERNET PUBLISHING AND BROADCASTING AND WEB SEARCH PORTALS ― 6.1% | |||||||
51 | Alphabet, Inc. * | 105,500 | |||||
600 | Alphabet, Inc. * | 1,237,513 | |||||
2,476 | Facebook, Inc. * | 729,257 | |||||
424 | Netflix, Inc. * | 221,184 | |||||
1,545 | Twitter, Inc. * | 98,308 | |||||
2,391,762 | |||||||
INVESTMENT BANKING AND SECURITIES DEALING ― 1.8% | |||||||
4,522 | Charles Schwab Corp./The | 294,744 | |||||
647 | Goldman Sachs Group, Inc./The | 211,569 | |||||
2,770 | Morgan Stanley | 215,118 | |||||
721,431 | |||||||
JANITORIAL SERVICES ― 0.2% | |||||||
386 | Ecolab, Inc. | 82,631 | |||||
LESSORS OF MINIWAREHOUSES AND SELF-STORAGE UNITS ― 0.9% | |||||||
3,204 | Prologis, Inc. | 339,625 | |||||
36
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited)(Continued) |
Shares | Value | ||||||
LESSORS OF NONRESIDENTIAL BUILDINGS (EXCEPT MINIWAREHOUSES) ― 0.3% | |||||||
432 | American Tower Corp. | $ | 103,274 | ||||
LESSORS OF OTHER REAL ESTATE PROPERTY ― 0.9% | |||||||
1,357 | Crown Castle International Corp. | 233,580 | |||||
791 | Digital Realty Trust, Inc. | 111,404 | |||||
344,984 | |||||||
LESSORS OF RESIDENTIAL BUILDINGS AND DWELLINGS ― 0.4% | |||||||
3,200 | UDR, Inc. | 140,352 | |||||
LINEN AND UNIFORM SUPPLY ― 0.2% | |||||||
245 | Cintas Corp. | 83,621 | |||||
MANAGEMENT CONSULTING SERVICES ― 0.4% | |||||||
578 | Accenture PLC (1) | 159,673 | |||||
MANAGEMENT OF COMPANIES AND ENTERPRISES ― 2.5% | |||||||
1,329 | American Water Works Co, Inc. | 199,244 | |||||
991 | Dominion Energy, Inc. | 75,276 | |||||
3,052 | Duke Energy Corp. | 294,610 | |||||
5,146 | NextEra Energy, Inc. | 389,089 | |||||
958,219 | |||||||
MEDICAL EQUIPMENT AND SUPPLIES MANUFACTURING ― 1.9% | |||||||
200 | Align Technology, Inc. * | 108,306 | |||||
1,864 | Baxter International, Inc. | 157,210 | |||||
1,215 | Becton Dickinson and Co. | 295,427 | |||||
1,497 | Boston Scientific Corp. * | 57,859 | |||||
190 | ResMed, Inc. | 36,864 | |||||
343 | Stryker Corp. | 83,548 | |||||
739,214 | |||||||
METAL VALVE MANUFACTURING ― 0.4% | |||||||
2,600 | Masco Corp. | 155,740 | |||||
MINING AND OIL AND GAS FIELD MACHINERY MANUFACTURING ― 0.1% | |||||||
3,072 | NOV, Inc. * | 42,148 | |||||
MOTION PICTURE AND VIDEO PRODUCTION ― 1.0% | |||||||
2,035 | Walt Disney Co./The * | 375,498 | |||||
MOTOR VEHICLE ELECTRICAL AND ELECTRONIC EQUIPMENT MANUFACTURING ― 0.1% | |||||||
373 | Aptiv PLC *(1) | 51,437 | |||||
NATURAL GAS EXTRACTION ― 0.2% | |||||||
1,357 | Hess Corp. | 96,021 |
37
Ziegler FAMCO Hedged Equity Fund | |||||||
SCHEDULE OF INVESTMENTS | |||||||
March 31, 2021 (Unaudited)(Continued) | |||||||
Shares | Value | ||||||
NAVIGATIONAL, MEASURING, ELECTROMEDICAL, AND CONTROL INSTRUMENTS MANUFACTURING ― 2.6% | |||||||
1,246 | Danaher Corp. | $ | 280,450 | ||||
995 | Honeywell International, Inc. | 215,985 | |||||
307 | Illumina, Inc. * | 117,906 | |||||
754 | Microchip Technology, Inc. | 117,036 | |||||
158 | Northrop Grumman Corp. | 51,135 | |||||
128 | Teledyne Technologies, Inc. * | 52,947 | |||||
362 | Thermo Fisher Scientific, Inc. | 165,210 | |||||
1,000,669 | |||||||
NEW CAR DEALERS ― 0.2% | |||||||
565 | CarMax, Inc. * | 74,953 | |||||
NEWSPAPER PUBLISHERS ― 0.1% | |||||||
80 | S&P Global, Inc. | 28,230 | |||||
OFFICES OF PHYSICIANS ― 0.2% | |||||||
755 | Edwards Lifesciences Corp. * | 63,148 | |||||
OTHER BASIC INORGANIC CHEMICAL MANUFACTURING ― 0.2% | |||||||
792 | Church & Dwight Co, Inc. | 69,181 | |||||
OTHER BASIC ORGANIC CHEMICAL MANUFACTURING ― 0.2% | |||||||
565 | International Flavors & Fragrances, Inc. | 78,880 | |||||
OTHER CONVERTED PAPER PRODUCT MANUFACTURING ― 0.2% | |||||||
452 | Kimberly-Clark Corp. | 62,851 | |||||
OTHER DIRECT SELLING ESTABLISHMENTS ― 0.2% | |||||||
565 | CDW Corp. | 93,649 | |||||
OTHER PLASTICS PRODUCT MANUFACTURING ― 0.1% | |||||||
218 | 3M Co. | 42,004 | |||||
OTHER TRAVEL ARRANGEMENT AND RESERVATION SERVICES ― 0.4% | |||||||
70 | Booking Holdings, Inc. * | 163,089 | |||||
PAPERBOARD MILLS ― 0.1% | |||||||
175 | Packaging Corp of America | 23,534 | |||||
PETROLEUM REFINERIES ― 2.0% | |||||||
1,809 | Chevron Corp. | 189,565 | |||||
3,345 | ConocoPhillips | 177,185 | |||||
38
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited)(Continued) |
Shares | Value | ||||||
PETROLEUM REFINERIES ― 2.0% (Continued) | |||||||
4,296 | Exxon Mobil Corp. | $ | 239,846 | ||||
1,080 | Phillips 66 | 88,063 | |||||
967 | Valero Energy Corporation | 69,237 | |||||
763,896 | |||||||
PHARMACEUTICAL AND MEDICINE MANUFACTURING ― 5.8% | |||||||
1,428 | Abbott Laboratories | 171,131 | |||||
1,545 | AbbVie, Inc. | 167,200 | |||||
508 | Alexion Pharmaceuticals, Inc. * | 77,678 | |||||
1,244 | Amgen, Inc. | 309,520 | |||||
3,900 | Bristol-Myers Squibb Co. | 246,207 | |||||
709 | Eli Lilly & Co. | 132,455 | |||||
1,124 | Gilead Sciences, Inc. | 72,644 | |||||
3,392 | Johnson & Johnson | 557,476 | |||||
3,392 | Merck & Co, Inc. | 261,489 | |||||
5,613 | Pfizer Inc. | 203,359 | |||||
449 | Zoetis, Inc. | 70,709 | |||||
2,269,868 | |||||||
PHARMACIES AND DRUG STORES ― 0.5% | |||||||
2,600 | CVS Health Corp. | 195,598 | |||||
PIPELINE TRANSPORTATION OF NATURAL GAS ― 0.2% | |||||||
5,592 | Kinder Morgan Inc. | 93,107 | |||||
PLASTICS MATERIAL AND RESIN MANUFACTURING ― 0.3% | |||||||
1,074 | LyondellBasell Industries N.V. | 111,750 | |||||
PORTFOLIO MANAGEMENT ― 0.1% | |||||||
1,931 | Franklin Resources, Inc. | 57,158 | |||||
RADIO AND TELEVISION BROADCASTING AND WIRELESS COMMUNICATIONS EQUIPMENT MANUFACTURING ― 1.0% | |||||||
678 | L3Harris Technologies, Inc. | 137,417 | |||||
565 | Motorola Solutions, Inc. | 106,248 | |||||
1,017 | QUALCOMM, Inc. | 134,844 | |||||
378,509 | |||||||
RAIL TRANSPORTATION ― 0.7% | |||||||
577 | CSX Corp. | 55,634 | |||||
227 | Norfolk Southern Corp. | 60,954 | |||||
757 | Union Pacific Corp. | 166,850 | |||||
283,438 | |||||||
REINSURANCE CARRIERS ― 0.2% | |||||||
346 | Everest Re Group Ltd. (1) | 85,742 | |||||
RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES ― 0.1% | |||||||
98 | Regeneron Pharmaceuticals, Inc. * | 46,368 | |||||
39
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited)(Continued) |
Shares | Value | ||||||
RESIDENTIAL BUILDING CONSTRUCTION ― 0.7% | |||||||
2,071 | DR Horton, Inc. | $ | 184,568 | ||||
1,894 | PulteGroup, Inc. | 99,321 | |||||
283,889 | |||||||
RESIN AND SYNTHETIC RUBBER MANUFACTURING ― 0.5% | |||||||
2,374 | DuPont de Nemours, Inc. | 183,463 | |||||
RESTAURANTS AND OTHER EATING PLACES ― 1.0% | |||||||
113 | Domino's Pizza, Inc. | 41,560 | |||||
292 | McDonald's Corp. | 65,449 | |||||
2,675 | Starbucks Corp. | 292,298 | |||||
399,307 | |||||||
SAVINGS INSTITUTIONS ― 0.3% | |||||||
6,369 | People's United Financial, Inc. | 114,005 | |||||
SECURITIES AND COMMODITY EXCHANGES ― 0.1% | |||||||
251 | CME Group, Inc. | 51,262 | |||||
SEMICONDUCTOR AND OTHER ELECTRONIC COMPONENT MANUFACTURING ― 4.8% | |||||||
1,696 | Advanced Micro Devices, Inc. * | 133,136 | |||||
452 | Allegion PLC (1) | 56,780 | |||||
678 | Broadcom, Inc. | 314,361 | |||||
277 | Enphase Energy, Inc. * | 44,918 | |||||
3,957 | Intel Corp. | 253,248 | |||||
1,799 | Micron Technology, Inc. * | 158,690 | |||||
623 | NVIDIA Corp. | 332,638 | |||||
3,168 | Texas Instruments, Inc. | 598,720 | |||||
1,892,491 | |||||||
SNACK FOOD MANUFACTURING ― 0.3% | |||||||
1,714 | Mondelez International, Inc. | 100,320 | |||||
SOAP AND CLEANING COMPOUND MANUFACTURING ― 1.2% | |||||||
647 | Colgate-Palmolive Co. | 51,003 | |||||
2,003 | Dow, Inc. | 128,072 | |||||
2,261 | Procter & Gamble Co./The | 306,206 | |||||
485,281 | |||||||
SOFT DRINK AND ICE MANUFACTURING ― 1.4% | |||||||
3,281 | Coca-Cola Co./The | 172,942 | |||||
1,205 | Monster Beverage Corp. * | 109,763 | |||||
1,922 | PepsiCo, Inc. | 271,867 | |||||
554,572 | |||||||
SOFTWARE PUBLISHERS ― 8.4% | |||||||
1,357 | Activision Blizzard, Inc. | 126,201 | |||||
384 | Adobe, Inc. * | 182,542 | |||||
791 | Citrix Systems, Inc. | 111,025 | |||||
197 | Electronic Arts, Inc. | 26,668 | |||||
497 | Intuit, Inc. | 190,381 |
40
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2021 (Unaudited)(Continued) |
Shares | Value | |||||||
SOFTWARE PUBLISHERS ― 8.4% (Continued) | ||||||||
7,924 | Microsoft Corp. | $ | 1,868,241 | |||||
4,382 | NortonLifeLock, Inc. | 93,161 | ||||||
3,618 | Oracle Corp. | 253,875 | ||||||
162 | Paycom Software, Inc. * | 59,950 | ||||||
909 | salesforce.com, Inc. * | 192,589 | ||||||
315 | ServiceNow, Inc. * | 157,534 | ||||||
3,262,167 | ||||||||
TELEPHONE APPARATUS MANUFACTURING ― 1.3% | ||||||||
9,836 | Cisco Systems, Inc. | 508,620 | ||||||
TELEVISION BROADCASTING ― 0.4% | ||||||||
2,414 | Discovery, Inc. * | 104,912 | ||||||
1,426 | ViacomCBS, Inc. | 64,313 | ||||||
169,225 | ||||||||
TOBACCO MANUFACTURING ― 0.8% | ||||||||
1,992 | Altria Group, Inc. | 101,911 | ||||||
2,497 | Philip Morris International, Inc. | 221,584 | ||||||
323,495 | ||||||||
TOILET PREPARATION MANUFACTURING ― 0.2% | ||||||||
306 | Estee Lauder Cos Inc/The | 89,000 | ||||||
VETERINARY SERVICES ― 0.3% | ||||||||
201 | IDEXX Laboratories, Inc. * | 98,351 | ||||||
WINERIES ― 0.3% | ||||||||
540 | Brown-Forman Corp. | 37,244 | ||||||
296 | Constellation Brands, Inc. | 67,488 | ||||||
104,732 | ||||||||
WIRED AND WIRELESS TELECOMMUNICATIONS CARRIERS ― 2.7% | ||||||||
2,428 | AT&T Inc. | 73,496 | ||||||
8,818 | Comcast Corp. | 477,142 | ||||||
8,945 | Verizon Communications, Inc. | 520,152 | ||||||
1,070,790 | ||||||||
TOTAL COMMON STOCKS (Cost $34,506,647) | $ | 39,055,944 | ||||||
Contracts | Notional ($) | |||||||
PURCHASED OPTION ― 0.9% * | ||||||||
Put Option ― 0.9% | ||||||||
98 | S&P 500 Index at $3,840, Expires April 30, 2021 | 38,934,322 | 342,020 | |||||
TOTAL PURCHASED OPTION (Premiums paid $420,331) | $ | 342,020 | ||||||
41
Ziegler FAMCO Hedged Equity Fund | |||||||||||
SCHEDULE OF INVESTMENTS | |||||||||||
March 31, 2021 (Unaudited)(Continued) | |||||||||||
Shares | Value | ||||||||||
SHORT TERM INVESTMENT ― 1.5% | |||||||||||
606,621 | Short-Term Investments Trust - Government & Agency Portfolio - Institutional Class, 0.030% (2) | $ | 606,621 | ||||||||
TOTAL SHORT TERM INVESTMENT (Cost $606,621) | $ | 606,621 | |||||||||
TOTAL INVESTMENTS ― 102.4% (Cost $35,533,599) | 40,004,585 | ||||||||||
Liabilities in Excess of Other Assets ― (2.4)% | (951,412 | ) | |||||||||
TOTAL NET ASSETS ― 100.0% | $ | 39,053,173 | |||||||||
Contracts | Notional ($) | Value | |||||||||
WRITTEN OPTIONS ― (1.1)% * | |||||||||||
Call Option ― (1.0)% | |||||||||||
(98 | ) | S&P 500 Index at $4,030, Expires April 30, 2021 | (38,934,322 | ) | $ | (381,710 | ) | ||||
Total Call Option Written (Premiums received $352,048) | (381,710 | ) | |||||||||
Put Option ― (0.1)% | |||||||||||
(98 | ) | S&P 500 Index at $3,370, Expires April 30, 2021 | (38,934,322 | ) | (48,510 | ) | |||||
Total Put Option Written (Premiums received $65,325) | (48,510 | ) | |||||||||
TOTAL WRITTEN OPTIONS (Premiums received $417,373) | $ | (430,220 | ) | ||||||||
Percentages are stated as a percent of net assets. | |||||
* | Non-income producing security. | ||||
(1) | Foreign issued security. | ||||
(2) | Rate quoted is seven-day yield at period end. | ||||
Abbreviations used in this schedule: | |||||
PLC ― Public Limited Company |
The accompanying notes are an integral part of these financial statements. | |||||
42
Ziegler FAMCO Hedged Equity Fund | ||||
STATEMENT OF ASSETS AND LIABILITIES | ||||
March 31, 2021 (Unaudited) | ||||
Assets: | ||||
Investments in securities at value (cost $35,113,268) | $ | 40,004,585 | ||
Receivables: | ||||
Investment securities sold | 1,272,221 | |||
Dividends and interest | 25,283 | |||
Prepaid expenses | 5,441 | |||
Total assets | 41,307,530 | |||
Liabilities: | ||||
Written options, at value (premiums received $417,373) | 430,220 | |||
Payables: | ||||
Due to broker | 747,762 | |||
Fund shares redeemed | 3,885 | |||
Distribution Fees | 719 | |||
Due to Investment Adviser | 17,324 | |||
Investment securities purchased | 918,319 | |||
Accrued expenses and other liabilities | 136,128 | |||
Total liabilities | 2,254,357 | |||
Net Assets | $ | 39,053,173 | ||
Components of Net Assets: | ||||
Paid-in capital | $ | 37,288,871 | ||
Total accumulated gain | 1,764,302 | |||
Net Assets | $ | 39,053,173 | ||
Institutional Class: | ||||
Net Assets | $ | 39,053,173 | ||
Issued and Outstanding | 3,634,106 | |||
Net Asset Value, Redemption Price and Offering Price Per Share | $ | 10.75 | ||
The accompanying notes are an integral part of these financial statements.
43
Ziegler FAMCO Hedged Equity Fund | ||||
STATEMENT OF OPERATIONS | ||||
For the Six Months Ended March 31, 2021 (Unaudited) | ||||
Investment Income: | ||||
Dividend income (Net of foreign tax of $1,330) | $ | 283,545 | ||
Interest income | 354 | |||
Total investment income | 283,899 | |||
Expenses: | ||||
Advisory fees (Note 3) | 115,765 | |||
Administration and fund accounting fees (Note 3) | 43,476 | |||
Transfer agent fees and expenses (Note 3) | 17,951 | |||
Legal fees | 14,959 | |||
Custody fees (Note 3) | 13,732 | |||
Audit fees | 8,727 | |||
Trustee fees (Note 3) | 7,480 | |||
Compliance fees (Note 3) | 4,586 | |||
Registration fees | 2,879 | |||
Insurance fees | 1,936 | |||
Shareholder reporting fees | 1,496 | |||
Miscellaneous expenses | 790 | |||
Total expenses | 233,777 | |||
Expenses waived and reimbursed by the Adviser (Note 3) | (63,099 | ) | ||
Net expenses | 170,678 | |||
Net investment income | 113,221 | |||
Realized and Unrealized Gain on Investments | ||||
Net realized gain on investments | 559,539 | |||
Net change in unrealized appreciation/depreciation on investments | 2,412,892 | |||
Net realized and unrealized gain on investments | 2,972,431 | |||
Net increase in net assets resulting from operations | $ | 3,085,652 | ||
The accompanying notes are an integral part of these financial statements.
44
Ziegler FAMCO Hedged Equity Fund | ||||||||
STATEMENT OF CHANGES IN NET ASSETS | ||||||||
For the Six Months Ended March 31, 2021 (Unaudited) | For the Year Ended Septeember 30, 2020 | |||||||
Increase (Decrease) in Net Assets from: | ||||||||
Operations: | ||||||||
Net investment income | $ | 113,221 | $ | 292,194 | ||||
Net realized gain (loss) on investments | 559,539 | (922,799 | ) | |||||
Net change in unrealized appreciation/depreciation on investments | 2,412,892 | 362,758 | ||||||
Net increase (decrease) in net assets resulting from operations | 3,085,652 | (267,847 | ) | |||||
Distributions to shareholders: | ||||||||
Dividends | (77,922 | ) | (247,643 | ) | ||||
Net investment loss * | - | (701,322 | ) | |||||
Total distributions to shareholders | (77,922 | ) | (948,965 | ) | ||||
Capital Transactions: | ||||||||
Net proceeds from shares sold | 14,385,717 | 1,698,218 | ||||||
Reinvestment of distributions | 70,936 | 843,736 | ||||||
Cost of shares repurchased | (2,500,990 | ) | (3,151,882 | ) | ||||
Net increase (decrease) in net assets from capital transactions | 11,955,663 | (609,928 | ) | |||||
Total Increase (Decrease) in Net Assets | 14,963,393 | (1,826,740 | ) | |||||
Net Assets: | ||||||||
Beginning of period | 24,089,780 | 25,916,520 | ||||||
End of period | $ | 39,053,173 | $ | 24,089,780 | ||||
Capital Share Transactions: | ||||||||
Shares sold | 1,389,428 | 183,676 | ||||||
Shares reinvested | 6,913 | 88,282 | ||||||
Shares repurchased | (242,041 | ) | (343,191 | ) | ||||
Net increase in shares outstanding | 1,154,300 | (71,233 | ) | |||||
* Includes net realized gain on investments sold. | ||||||||
The accompanying notes are an integral part of these financial statements.
45
Ziegler FAMCO Hedged Equity Fund | ||||||||||
FINANCIAL HIGHLIGHTS | ||||||||||
Institutional Class | ||||||||||
Per Share Data for a Share Outstanding Throughout Each Period Presented. |
For the Six Months Ended March 31, 2021 (Unaudited) | For the Year Ended September 30, 2020 | For the Year Ended September 30, 2019 | For the Year Ended September 30, 2018 | Period from November 29, 2016(1) to September 30, 2017 | ||||||||||||
Net Asset Value, Beginning of Period | $ | 9.71 | $ | 10.16 | $ | 10.58 | $ | 10.47 | $ | 10.00 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||
Net investment income(2) | 0.04 | 0.12 | 0.15 | 0.13 | 0.11 | |||||||||||
Net realized and unrealized gain (loss) on investments | 1.03 | (0.18) | 0.07 | 0.35 | 0.42 | |||||||||||
Total Gain (Loss) from Investment Operations | 1.07 | (0.07) | 0.22 | 0.48 | 0.53 | |||||||||||
LESS DISTRIBUTIONS: | ||||||||||||||||
From net investment income | (0.03) | (0.38) | (0.20) | (0.13) | (0.06) | |||||||||||
From net realized gain on investments | - | - | (0.11) | (0.25) | - | |||||||||||
From return of capital | (0.33) | - | - | |||||||||||||
Total Distributions | (0.03) | (0.38) | (0.63) | (0.37) | (0.06) | |||||||||||
Net Asset Value, End of Period | $ | 10.75 | $ | 9.71 | $ | 10.16 | $ | 10.58 | $ | 10.47 | ||||||
Total Return | 11.05% | (3) | 12.75% | 2.43% | 4.74% | 5.30% | (3) | |||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||
Net assets, end of period (in thousands) | $39,053 | $24,090 | $25,917 | $21,810 | $144,845 | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
Before fees waived / reimbursed by the Adviser | 0.78% | (4) | 1.73% | 1.63% | 2.02% | 291.00% | (4) | |||||||||
After fees waived / reimbursed by the Adviser | 0.57% | (4) | 1.15% | 1.15% | 1.15% | 115.00% | (4) | |||||||||
Ratio of net investment income to average net assets | ||||||||||||||||
After fees waived / reimbursed by the Adviser | 0.38% | (4) | 1.19% | 1.53% | 1.30% | 130.00% | (4) | |||||||||
Portfolio turnover rate | 65% | (3) | 20% | 9614% | 7378% | 8096% | (3) | |||||||||
(1) | Commencement of operations. | |||||||||||||||
(2) | Computed using average shares method. | |||||||||||||||
(3) | Not Annualized. | |||||||||||||||
(4) | Annualized. |
46
Ziegler Senior Floating Rate Fund
NOTES TO FINANCIAL STATEMENTS
March 31, 2021 (Unaudited)
The Ziegler Senior Floating Rate Fund (the “Floating Rate Fund”), formerly known as Ziegler Floating Rate Fund, Ziegler Piermont Small Cap Value Fund (the “Small Cap Fund”) and Ziegler FAMCO Hedged Equity Fund (the “FAMCO Fund”, each a Fund and together, the “Funds”) are separate series of the Trust for Advised Portfolios (the “Trust”). The Trust was organized on August 28, 2003, as a Delaware Statutory Trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end investment management company. Ziegler Capital Management, LLC (“the Adviser” or “Ziegler”) serves as the investment manager to the Funds. Pretium Credit Management LLC (“Pretium”) serves as the Sub-Advisor to the Floating Rate Fund. USCA Asset Management LLC (“USCA”) serves as the Sub-Adviser to the FAMCO Fund.
The FAMCO Fund converted to the Trust on December 21, 2020 and was previously organized in the USCA Fund Trust as the USCA Premium Buy-Write Fund (the “Predecessor Fund”). Concurrent with the reorganization into the Trust, the Board of Trustees (the “Board”) of the Trust elected to keep the fiscal year end for the Fund as September 30th. USCA served as the investment adviser to the Predecessor Fund.
The Funds are each registered as a diversified investment series of the Trust. The investment objective of the Floating Rate Fund is to provide total return, comprised of current income and capital appreciation by investing in senior secured floating rate loans and other senior secured floating rate debt instruments, and in other instruments that have economic characteristics similar to such instruments. The Fund commenced operations on April 1, 2016. The Small Cap Fund seeks to maximize total return from a combination of capital appreciation and income. The Fund commenced operations on July 21, 2020. The FAMCO Fund seeks growth of capital and income. The Predecessor Fund commenced operations on November 29, 2016.
The Floating Rate Fund offers three classes of shares, Class A, Class C and Institutional Class; the Small Cap Fund and FAMCO Fund offer an Institutional Class. Each Fund has an unlimited number of shares of beneficial interest, with no par value and represents an equal pro rata interest in each Fund, except the difference of class specific expenses, which reflects the difference in the range of services provided to each class. Income and expenses (other than those attributable to a specific class), and realized and unrealized gains and losses on investments are allocated to each class based on relative net assets on a daily basis.
Note 2 – Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for investment companies. The Funds are each considered an investment company under U.S. GAAP and follow the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946. The presentation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the period reported. Actual results may differ from those estimates.
(a) Securities Valuation – Equity investments in securities traded on a national securities exchange are valued at the last reported sales price on the exchange on which the security is principally traded. Securities traded on the NASDAQ exchanges are valued at the NASDAQ Official Closing Price (“NOCP”). Exchange-traded securities for which no sale was reported and NASDAQ securities for which there is no NOCP are valued at the mean of the most recent quoted bid and ask prices. Unlisted securities held by the Funds are valued at the last sale price in the over-the-counter (“OTC”) market. If there is no trading on a particular day, the mean between the last quoted bid and ask price is used.
Fixed income securities are valued using prices provided by an independent pricing service approved by the Board of Trustees (the “Board”). Pricing services may use various valuation methodologies, including matrix pricing and other analytical models as well as market transactions and dealer quotations. Securities for which market quotations are not readily available are valued at their estimated fair value as determined in good faith by Ziegler or Pretium under procedures established by and under the general supervision and responsibility of the Board.
The fair value of bank loans is generally valued using recently executed transactions, market price quotations (where observable) and market observable credit default swap levels. Fair value is based on the average of one or more broker quotes received. When quotations are unobservable, proprietary valuation models and default recovery analysis methods are employed. Bank debt is generally categorized in Level 2 or 3 of the fair value hierarchy, depending on the use and availability of observable inputs.
47
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2021 (Unaudited)
Options are valued using composite pricing via the National Best Bid and Offer quotes. Composite pricing looks at the last trade on the exchange where the option is traded. If there are no trades for an option on a given business day, as of closing, the Fund will value the option at the mean of the highest bid price and lowest ask price across the exchanges where the option is traded. For options where market quotations are not readily available, fair value shall be determined by the Adviser.
Various inputs are used in determining the value of the Funds’ investments. These inputs are summarized into three broad levels and described below:
Level 1 – quoted prices in active markets for identical securities. An active market for the security is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value.
Level 2 – observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.
Level 3 – significant unobservable inputs, including the Fund’s own assumptions in determining the fair value of investments.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to fair value the Funds’ investments in each category investment type as of March 31, 2021:
Floating Rate Fund | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Bank Loans | $ | - | $ | 69,363,122 | $ | - | $ | 69,363,122 | ||||||||
Common Stock | 42,574 | - | - | 42,574 | ||||||||||||
Short-Term Investment | 4,691,703 | - | - | 4,691,703 | ||||||||||||
Total | $ | 4,734,277 | $ | 69,363,122 | $ | - | $ | 74,097,399 |
Small Cap Fund | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Common Stock | $ | 3,365,995 | $ | - | $ | - | $ | 3,365,995 | ||||||||
Total | $ | 3,365,995 | $ | - | $ | - | $ | 3,365,995 |
48
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2021 (Unaudited)
FAMCO Fund | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Common Stock | $ | 39,055,944 | $ | - | $ | - | $ | 39,055,944 | ||||||||
Purchased Options | - | 342,020 | - | 342,020 | ||||||||||||
Short-Term Investment | 606,621 | - | - | 606,621 | ||||||||||||
Total | $ | 39,662,565 | $ | 342,020 | $ | - | $ | 40,004,585 |
Liabilities: | ||||||||||||||||
Written Options | $ | - | $ | (430,220 | ) | $ | - | $ | (430,220 | ) | ||||||
Total | $ | - | $ | (430,220 | ) | $ | - | $ | (430,220 | ) | ||||||
See the Schedule of Investments for further detail of investment classifications.
(b) The FAMCO Fund invests in certain derivatives, as detailed below, to meet its investment objectives.
The Fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Derivatives are subject to a number of risks, such as liquidity risk, interest rate risk, market risk, credit risk and management risk. They also involve the risk of mispricing or improper valuation and the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. The Fund by investing in a derivative instrument could lose more than the principal amount invested. Also, suitable derivative transactions may not be available in all circumstances and there can be no assurance that the Fund will engage in these transactions to reduce exposure to other risks when that would be beneficial.
following provides more information on specific types of derivatives and activity in the Fund. The use of derivative instruments by the Fund for the period ended March 31, 2021 was related to the use of purchased and written options. The Fund sells (writes) call options on a majority of these stocks and ETFs, or a representative index, such as the S&P 500, in seeking to shield the Fund from some of the risk associated with these investments and to generate additional returns to the extent of the call option premium received. The Fund may also purchase and sell exchange traded put options, employing an option overlay known as a “Put/Spread” strategy in order to provide additional downside protection and risk-reduction. The options may be based on the S&P 500 Index or on ETFs that replicate the S&P 500 Index (S&P 500 ETFs). The combination of the diversified portfolio of equity securities, the downside protection from index put spread and the income from the call options is intended to provide the Fund with a portion of the returns associated with equity market investments while exposing investors to less risk than traditional long-only equity strategies (strategies that do not employ call or put options).
As the seller of a call option, the Fund receives cash (the “premium”) from the purchaser. The purchaser of a call option has the right to any appreciation in the value of the index over a fixed price (the “exercise price”) on a certain date in the future (the “expiration date”). If the purchaser does not exercise the option, the Fund retains the premium. If the purchaser exercises the option, the Fund pays the purchaser the difference between the value of the index and the exercise price of the option. The premium, the exercise price and the value of the index determine the gain or loss realized by the Fund as the seller of the index call option.
The Fund had outstanding purchased and written option contracts as listed on the Schedule of Investments as of March 31, 2021. The fair market value of purchased options is included in Investments in securities, and written options is reported separately on the Statement of Assets and Liabilities. Realized gains and change in unrealized appreciation for purchased options are included in amounts presented under Investments on the Statement of Operations, and totaled $1,685,907 and $608,482, respectively. These amounts are reported separately for written options. The primary risk category for all option positions during the fiscal period was equity risk.
For the period ended March 31, 2021, the month-end average number of purchased and written option contracts for the Fund was 89 and (1,180), respectively
(c) Federal Income Taxes - The Funds have elected to be taxed as a Regulated Investment Companies (“RIC”) under the U.S. Internal Revenue Code of 1986, as amended, and intend to maintain this qualification and to distribute substantially all of the net taxable income to shareholders. Therefore, no provision is made for federal income taxes. Due to the timing of dividend distributions and the differences in accounting for income and realized gains and losses for financial statement and federal income tax purpose, the fiscal year in which amounts are distributed may differ from the year in which the income and realized gains and losses are recorded by the Funds.
49
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2021 (Unaudited)
(d) Distributions to Shareholders – The Funds record distributions to shareholders, which are determined in accordance with income tax regulations, on the ex-dividend date. The Floating Rate Fund declares dividends from any net investment income daily and pays them monthly. The Small Cap Fund and FAMCO Fund make distributions from net investment income, if any, at least annually. Net realized gains from investment transactions, if any, are distributed to shareholders annually. The Funds may periodically make reclassifications among certain income and capital gains distributions determined in accordance with federal tax regulations, which may differ from U.S. GAAP. These reclassifications are due to differences in the recognition of income, expense and gain (loss) items for financial statement and tax purposes.
(e) Indemnifications – In the normal course of business, the Funds enter into contracts that contain a variety of representations, 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 that has not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
(f) Cash – Concentration in Uninsured Cash – For cash management purposes the Funds may concentrate cash with the Funds’ custodian. This typically results in cash balances exceeding the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. As of March 31, 2021, the Floating Rate Fund held $132,148 as cash reserves at U.S. Bank, N.A. (“U.S. Bank”) that exceeded the FDIC insurance limit.
(g) Other – The Funds record security transactions based on trade date. Realized gains and losses on sales of securities are reported on the basis of identified cost of securities delivered. Dividend income and expense are recognized on the ex-dividend date, and interest income and expense are recognized on an accrual basis. Discounts and premiums on securities purchased are amortized over the lives of the respective securities using the effective yield method. Fee income from bank loan investments, including amendment and consent fees, are presented separately on the Statement of Operations. Withholding taxes on foreign dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates.
Note 3 – Investment Management Agreement and Other Transactions with Affiliates
The Trust has an agreement with the Adviser to furnish investment advisory services to the Funds. Under the terms of this agreement, the Funds pay the Adviser a monthly fee based on the average daily net assets at an annual rate of 0.65% for the Floating Rate Fund, 0.75% for the Small Cap Fund and 0.78% for the FAMCO Fund. The Predecessor Fund also charged a 0.78% annual investment management fee. The Adviser has entered into Sub-Advisory agreements with Pretium and USCA for the Floating Rate Fund and FAMCO Fund, respectively; the compensation for each sub-adviser is based on assets under management and is paid out of Ziegler’s advisory fees.
Pursuant to a contractual fee waiver and reimbursement agreement, the Adviser will reimburse the Floating Rate Fund for expenses in excess of 0.99%, 1.74%, and 0.74% of average daily net assets for Class A, Class C, and Institutional Class, respectively, 0.90% for the Small Cap Fund and 1.15% for the FAMCO Fund, excluding taxes, interest charges, litigation and other extraordinary expenses, acquired fund fees and expenses, interest expense relating to short sales, dividend expense, borrowing costs, extraordinary expenses, and brokers’ commissions and other charges relating to the purchase and sale of the Funds’ portfolio securities. Prior to the conversion, the Predecessor Fund had a similar agreement to limit the operating expenses to 1.15% of average net assets.
The Adviser is entitled to recoup the amounts provided for in the fee waiver and reimbursement agreement within 36 months following the month in which the Adviser reduced its compensation and/or assumed expenses for the Funds, provided that the total operating expenses of the Funds, including the recoupment, do not exceed the established limitation on expenses for that year.
50
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2021 (Unaudited)
At March 31, 2021, the amounts reimbursed by the Adviser and the eligible recapture periods are as follows:
Year Waived / Reimbursed | Floating Rate Fund | Small Cap Fund | FAMCO Fund | Expiration | |||||||||
2018 | 149,272 | - | - | September 30, 2021 | |||||||||
2019 | 311,869 | - | - | September 30, 2022 | |||||||||
2020 | 341,145 | 57,045 | - | September 30, 2023 | |||||||||
2021 | 169,062 | 93,443 | 30,895 | March 31, 2024 | |||||||||
$ | 971,348 | $ | 150,488 | $ | 30,895 | ||||||||
U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services”) serves as the administrator, fund accountant and transfer agent to the Funds. Fund Services provided similar services to the Predecessor Fund. The officers of the Trust are employees of Fund Services. U.S Bank, N.A. serves as the Funds’ custodian. Quasar Distributors, LLC (“Quasar”), serves as the Funds’ distributor and principal underwriter. For the period ended March 31, 2021, the Funds incurred the following expenses for administration & fund accounting, transfer agent, custody and compliance fees:
Floating Rate Fund | Small Cap Fund | FAMCO Fund |
Administration & fund accounting | $ 70,427 | $ 27,908 | $ 43,476 | ||
Transfer agent | 39.867 | 4,932 | 17,951 | ||
Custody | 10,774 | 5,294 | 13,732 | ||
Compliance | 10,060 | 6,224 | 4,586 |
At March 31, 2021, the Funds had payables for administration & fund accounting, transfer agent, custody and compliance fees in the following amounts:
Floating Rate Fund | Small Cap Fund | FAMCO Fund |
Administration & fund accounting | $ 47,146 | $ 19,182 | $ 55,895 | ||
Transfer agent | 27,143 | 6,133 | 25,386 | ||
Custody | 13,599 | 2,090 | 8,987 | ||
Compliance | 7,768 | 4,274 | 6,121 |
The above payable amounts are included in Accrued expenses and other liabilities in the Statement of Assets and Liabilities.
There is a maximum initial sales charge of 4.25% for Class A shares of the Floating Rate Fund and a contingent deferred sales charge (“CDSC”) of 1.00% on C shares of the Fund. There is no initial sales charge on purchases of $1,000,000 or more of Class A shares, but a 1.00% CDSC applies when the charge is waived and shares are redeemed within 18 months of purchase. The Distributor retains a portion of the initial sales charge when shares are purchased through a service agent and will retain the full amount if purchased through the Distributor. For the period ended March 31, 2021, Quasar did not retain sales charges on sales of the Class A shares of the Fund and CDSCs for Class C shares totaled $458.
The Floating Rate Fund charges a 1.00% redemption fee on the redemption of Class A shares held for 60 days or less.
51
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2021 (Unaudited)
Note 4 – Investment Transactions
Purchases and sales of investment securities (excluding short-term securities and U.S. government obligations) for each Fund for the period ended March 31, 2021, were as follows:
Floating Rate Fund
Purchases……………………………………………………………………………………………. $ 13,435,566
Sales…………………………………………………………………………………………………. $ 13,288,057
Small Cap Fund
Purchases……………………………………………………………………………………………. $ 3,204,150
Sales…………………………………………………………………………………………………. $ 2,042,023
FAMCO Fund
Purchases……………………………………………………………………………………………. $ 32,262,702
Sales…………………………………………………………………………………………………. $ 18,951,793
Note 5 – Federal Income Tax Information
At September 30, 2020, the components of accumulated earnings (deficit) for income tax purposes were as follows:
Floating Rate Fund | Small Cap Fund | FAMCO Fund | ||||
Cost of Investments……………………………….. | $ | 72,176,208 | $ | 1,219,407 | $ | 22,977,513 |
Gross Unrealized Appreciation..………………….. | 316,301 | 23,712 | 2,856,105 | |||
Gross Unrealized Depreciation…………………… | (3,608,110) | (78,597) | (930,735) | |||
Net Unrealized Appreciation (Depreciation) on Investments……………………………………….. | (3,291,809) | (54,885) | 1,925,370 | |||
Undistributed ordinary income…………………… | 1,132 | 1,295 | - | |||
Undistributed long-term capital gains………….… | - | - | - | |||
Distributable Earnings……………………….…… | 1,132 | 1,295 | - | |||
Other Accumulated Loss…………….……….…… | (2,020,837) | (973) | (1,716,901) | |||
Total Accumulated Gain (Loss).........…..………… | $ | (5,311,514) | $ | (54,563) | $ | 208,469 |
At September 30, 2020, the Funds had capital loss carryforwards, which reduce the Funds’ taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Funds of any liability for federal tax. Pursuant to the Internal Revenue Code, the character of such capital loss carryforwards is as follows:
Not Subject to Expiration | ||||
Short-Term | Long-Term | Total | ||
Floating Rate Fund | $ 173,097 | $ 1,847,740 | $ 2,020,837 | |
Small Cap Fund | 973 | - | 973 | |
FAMCO Fund | 484,268 | - | 484,268 | |
52
Floating Rate Fund
Six Months Ended March 31, 2021 | Year Ended September 30, 2020 | |||||||
Distributions Paid From: | ||||||||
Ordinary Income | $ | 1,212,166 | $ | 3,387,179 | ||||
Long Term Capital Gains | - | 26,800 | ||||||
Total Distributions Paid | $ | 1,212,166 | $ | 3,413,979 |
Small Cap Fund
Six Months Ended March 31, 2021 | Year Ended September 30, 2020 | |||||||
Distributions Paid From: | ||||||||
Ordinary Income | $ | 17,289 | $ | - | ||||
Long Term Capital Gains | 4,999 | - | ||||||
Total Distributions Paid | $ | 22,288 | $ | - |
53
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2021 (Unaudited)
Six Months Ended March 31, 2021 | Year Ended September 30, 2020 | |||||||
Distributions Paid From: | ||||||||
Ordinary Income | $ | 77,922 | $ | 247,643 | ||||
Return of Capital | - | 701,322 | ||||||
Total Distributions Paid | $ | 77,922 | $ | 948,965 |
Note 6 – Distribution Plan
The Trust, on behalf of the Floating Rate Fund, adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act that allows the Fund to pay distribution fees for the sale and distribution of its Class A and Class C shares. The Plan provides for the payment of distribution fees at the annual rate of up to 0.25% and 1.00% of average daily net assets attributable to the Class A and Class C shares, respectively. For the period ended March 31, 2021, distribution fees incurred are disclosed on the Statement of Operations.
Note 7 – Line of Credit
The Floating Rate Fund has access to a $15 million unsecured line of credit through an agreement with U.S. Bank. The Fund may temporarily draw on the line of credit to satisfy redemption requests or settle investment transactions. Interest is charged to the Fund based on its borrowings at a rate per annum equal to the Prime Rate, to be paid monthly. During the year ended March 31, 2021, the Fund did not draw on this line of credit.
Note 8 – Control Ownership
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates presumption of control of the fund under 2(a)(9) of the 1940 Act. As of March 31, 2021, Capinco held 36% of the outstanding Institutional Class shares of the Floating Rate Fund. Capinco and National Financial Services, LLC held 42% and 40%, respectively, of the outstanding shares of the Small Cap Fund. Charles Schwab & Co. Inc. held 29% of the outstanding shares of the FAMCO Fund.
54
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2021 (Unaudited)
In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were available to be issued. Subsequent to the period end, the Floating Rate Fund has made the following distributions per share:
Record Date | Payable Date | Class A | Class C | Class I |
Daily | 4/30/2021 | $0.0656 | $0.0498 | $0.0706 |
The Funds have determined there were no other subsequent events that would need to be disclosed in the financial statements.
Note 10 – Change in independent registered public accounting firm
Cohen & Company, Ltd. served as the independent registered public accounting firm for the Predecessor Fund to audit the financial statements for the fiscal year ending September 30, 2020.
The Trust engaged BBD, LLP on December 21, 2020, as the independent registered public accounting firm to audit the FAMCO Fund’s financial statements for the upcoming fiscal year ending September 30, 2021. The reports of Cohen & Company, Ltd. on the financial statements for the fiscal year ending September 30, 2020 contained no adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principle preceding fiscal years.
Note 10 – COVID-19 Risk
The global outbreak of COVID-19 (commonly referred to as “coronavirus”) has disrupted economic markets and the prolonged economic impact is uncertain. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The operational and financial performance of the issuers of securities in which the Funds’ invest depends on future developments, including the duration and spread of the outbreak, and such uncertainty may in turn adversely affect the value and liquidity of the Funds’ investments, impair the Funds’ ability to satisfy redemption requests, and negatively impact the Funds’ performance.
Note 11 – New Accounting Pronouncement
In March 2020, FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The main objective of the new guidance is to provide relief to companies that will be impacted by the expected change in benchmark interest rates at the end of 2021, when participating banks will no longer be required to submit London Interbank Offered Rate (“LIBOR”) quotes by the UK Financial Conduct Authority. The new guidance allows companies to, provided the only change to existing contracts are a change to an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. In addition, derivative contracts that qualified for hedge accounting prior to modification, will be allowed to continue to receive such treatment, even if critical terms change due to a change in the benchmark interest rate. For new and existing contracts, the Funds may elect to apply the amendments as of March 12, 2020 through December 31, 2022. Management is currently assessing the impact of the ASU’s adoption to the Funds’ financial statements and various filings.
55
Ziegler Funds
EXPENSE EXAMPLE
March 31, 2021 (Unaudited)
As a shareholder of the Funds, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, redemption fees and (2) ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2020 to March 31, 2021 (the “period”).
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 equals 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. 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 Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line of the table is useful in comparing the 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 could have been higher.
Expenses Paid During the Period
Beginning Account Value | Ending Account Value | Expenses Paid During the Period(1) | |
Floating Rate Fund | |||
Class A | |||
Actual Fund Return | 1,000 | 1,038.20 | 5.03 |
Hypothetical 5% Return | 1,000 | 1,020.00 | 4.99 |
Class C | |||
Actual Fund Return | 1,000 | 1,034.50 | 8.83 |
Hypothetical 5% Return | 1,000 | 1,016.26 | 8.75 |
Institutional Class | |||
Actual Fund Return | 1,000 | 1,039.60 | 3.77 |
Hypothetical 5% Return | 1,000 | 1,021.24 | 3.73 |
Small Cap Fund | |||
Institutional Class | |||
Actual Fund Return | 1,000 | 1,548.70 | 5.72 |
Hypothetical 5% Return | 1,000 | 1,020.44 | 4.53 |
FAMCO Fund | |||
Institutional Class | |||
Actual Fund Return | 1,000 | 1,110.50 | 6.05 |
Hypothetical 5% Return | 1,000 | 1,019.20 | 5.79 |
56
Ziegler Funds
EXPENSE EXAMPLE
March 31, 2021 (Unaudited)
(1) | Expenses for the Floating Rate Fund are 0.99%, 1.74% and 0.74% for Class A, Class C and Institutional Class shares, respectively, multiplied by the average account value over the period, multiplied by 182/365. Expenses for the Small Cap Fund are equal to the Fund’s annualized expense ratio of 0.90%, multiplied by the average account value over the period, multiplied by 182/365. Expenses for the FAMCO Fund are equal to the Fund’s annualized expense ratio of 1.15%, multiplied by the average account value over the period, multiplied by 182/365. The inception date for the Small Cap Fund was July 21, 2020. The expense ratios for each Fund reflects an expense waiver. Assumes all dividends and distributions were reinvested. |
57
Ziegler FAMCO Hedged Equity Fund
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
March 31, 2021 (Unaudited)
At a meeting held on November 17, 2020, the Board of Trustees (the “Board”) of Trust for Advised Portfolios (the “Trust”), including all the Trustees who are not “interested persons” of the Trust (“Independent Trustees”), as that term is defined in the Investment Company Act of 1940, considered and approved the investment advisory agreement (“Advisory Agreement”) with Ziegler Capital Management (“Adviser”) and investment sub-advisory agreement (“Subadvisory Agreement)” with US Capital Advisers (“Subadvisor”) for the Ziegler FAMCO Hedged Equity Fund (“Fund”).
Ahead of the November meeting, the Board received and reviewed substantial information regarding the Fund, the Adviser, the Subadvisor, and the services to be provided by the Adviser and Subadvisor to the Fund under the Advisory Agreement and Subadvisory Agreement. This information formed the primary (but not exclusive) basis for the Board’s determinations. The Independent Trustees were assisted in their review by independent legal counsel, and met with counsel in executive session separate from representatives of the Adviser and Subadvisor. The Independent Trustees also received a memorandum from independent legal counsel outlining their fiduciary duties and legal standards in reviewing the Advisory Agreement and Subadvisor Agreement. The Trustees evaluated a number of considerations they believed, in light of the legal advice furnished to them by counsel and their own business judgment to be relevant, and then made decisions in their business judgment. In considering the approval of the Advisory Agreement and Subadvisory Agreement for an initial two-year period, the Board considered the following factors and made the following determinations. In its deliberations, the Board did not identify any single factor or piece of information as all important, controlling, or determinative of its decision, and each Trustee may have attributed different weights to the various factors and information.
• | In considering the nature, extent and quality of the services to be provided by the Adviser and Subadvisor, the Trustees considered the Adviser and Subadvisor’s specific responsibilities in all aspects of the day-to-day management of the Fund as well as the qualifications, experience and responsibilities of the portfolio managers and other key personnel who would be involved in the day-to-day activities of the Fund. The Trustees considered, among other things, the Adviser and Subadvisor’s resources and compliance structure, their chief compliance officers, their compliance records, and their disaster recovery/business continuity plan. The Board concluded that the Adviser and Subadvisor each had sufficient quality and depth of personnel, resources, investment methods and compliance policies and procedures essential to performing its duties under the Advisory Agreement and Subadvisory Agreement and that, in the Board’s view, the nature, overall quality, and extent of the management services to be provided should be satisfactory and reliable. |
• | The Trustees reviewed the anticipated cost of the services to be provided by the Adviser and Subadvisor, and the structure and level of advisory fees to be paid to the Adviser by the Fund and to the Subadvisor by the Adviser, including a comparison of those fees to fees charged by a peer group of funds. The Trustees also considered that the Adviser would contractually agree to limit the Fund’s operating expenses to a certain level for a period of time. The Board noted that the Fund’s advisory fee and net expense ratio was lower than its peer group median and average. The Board further noted that the advisory fee was well within the peer group range. After reviewing the materials that were provided, the Board concluded that the fees to be received by the Adviser were fair and reasonable. |
• | The Trustees considered the Adviser and Subadvisor’s assertion that, based on the anticipated asset size of the Fund, economies of scale will not be met initially. In evaluating economies of scale, the Trustees also took into account the Adviser’s commitment to limit the Fund’s operating expenses for a period of time. The Trustees concluded that they will have the opportunity to periodically reexamine whether economies of scale have been achieved. |
• | The Trustees considered the anticipated profitability of the Adviser and Subadvisor from managing the Fund. In assessing the Adviser and Subadvisor’s profitability, the Trustees reviewed the Adviser and Subadvisor’s financial information that was provided in the November meeting materials and took into account both direct and indirect benefits to the Adviser and Subadvisor from managing the Fund. After a review of the relevant financial information, the Trustees concluded that the Adviser and Subadvisor’s anticipated profits from managing the Fund should not be excessive and that the Adviser and Subadvisor each had sufficient financial resources to support the Fund. |
58
Ziegler Funds
OTHER INFORMATION (Unaudited)
Quarterly Portfolio Schedule
The Funds file its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the SEC as an exhibit to its reports on Form N-PORT. The Funds’ Form N-PORT reports are available without charge by visiting the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. You may obtain information on the operation of the Public Reference Room by calling (800) SEC-0330.
Proxy Voting
You may obtain a description of the Funds’ proxy voting policy and voting records, without charge, upon request by contacting the Fund directly at (833) 777-1533 or on the EDGAR Database on the SEC’s website at ww.sec.gov. The Funds file their proxy voting records annually as of June 30 with the SEC on Form N-PX. The Funds’ Form N-PX is available without charge by visiting the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. You may obtain information on the operation of the Public Reference Room by calling (800) SEC-0330.
59
Privacy Notice
The Funds collect non-public information about you from the following sources:
• Information we receive about you on applications or other forms;
• Information you give us orally; and/or
• Information about your transactions with us or others.
We do not disclose any non-public personal information about our customers or former customers without the customer’s authorization, except as permitted by law or in response to inquiries from governmental authorities. We may share information with affiliated and unaffiliated third parties with whom we have contracts for servicing the Funds. We will provide unaffiliated third parties with only the information necessary to carry out their assigned responsibilities. We maintain physical, electronic and procedural safeguards to guard your non-public personal information and require third parties to treat your personal information with the same high degree of confidentiality.
In the event that you hold shares of the Funds through a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of your financial intermediary would govern how your non-public personal information would be shared by those entities with unaffiliated third parties.
60
Investment Adviser
Ziegler Capital Management, LLC
309 N. Water Street, Suite 315
Milwaukee, Wisconsin 53202
Investment Sub-Adviser
Pretium Credit Management, LLC
c/o Pretium Partners, LLC
810 Seventh Avenue, Suite 2400
New York, New York 10019
Distributor
Quasar Distributors, LLC
111 East Kilbourn Ave. Suite 1250
Milwaukee, Wisconsin 53202
Custodian
U.S. Bank National Association
Custody Operations
1555 North River Center Drive, Suite 302
Milwaukee, Wisconsin 53212
Transfer Agent, Fund Accountant and Fund Administrator
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
Independent Registered Public Accounting Firm
BBD, LLP
1835 Market Street, 3rd Floor
Philadelphia, PA 19103
Legal Counsel
Morgan, Lewis & Bockius LLP
1111 Pennsylvania Avenue, NW
Washington, DC 20004
This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.
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.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of Trustees.
Item 11. Controls and Procedures.
(a) | The Registrant’s President and Treasurer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider. |
(b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. |
Item 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 for semi-annual reports. |
(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.
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.
Trust for Advised Portfolios
By Christopher E. Kashmerick
Christopher E. Kashmerick, President
Date 6/9/21
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 Christopher E. Kashmerick
Christopher E. Kashmerick, President
Date 6/9/21
By Russell B. Simon
Russell B. Simon, Treasurer
Date 6/9/21