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)
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, 2022
Item 1. Reports to Stockholders.
(a) |
ZIEGLER SENIOR FLOATING RATE FUND
− | CLASS A (ZFLAX) |
− | CLASS C (ZFLCX) |
− | INSTITUTIONAL CLASS (ZFLIX) |
ZIEGLER FAMCO HEDGED EQUITY FUND
− | INSTITUTIONAL CLASS (SHLDX) |
SEMI-ANNUAL REPORT TO SHAREHOLDERS
March 31, 2022
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 | 11 |
Statement of Operations | 12 |
Statements of Changes in Net Assets | 13 |
Financial Highlights | 14 |
Ziegler FAMCO Hedged Equity Fund | |
Shareholder Letter | 17 |
Allocation of Portfolio Holdings | 20 |
Schedule of Investments | 21 |
Statement of Assets and Liabilities | 28 |
Statement of Operations | 29 |
Statement of Changes in Net Assets | 30 |
Financial Highlights | 31 |
Notes to Financial Statements | 32 |
Expense Example | 41 |
Other Information | 42 |
Privacy Notice | 43 |
Ziegler Senior Floating Rate Fund
Semi-Annual Report
Period Ending March 31, 2022
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, 2022.
During the reporting period, the Fund’s total return was -0.13% for Institutional shares, -0.24% for Class A shares without the sales charge, -4.50% for Class A shares with the sales charge, and -0.63% for Class C shares. The Credit Suisse Leveraged Loan Index’s total return was 0.61%, during the same period.
Market Environment
The market environment for bank loans remained strong in the fourth quarter of 2021 but softened modestly during the first quarter of 2022. The US economy remains challenged by supply chain issues and inflationary pressures from the pandemic, and the ongoing Russia/Ukraine crisis provided an additional headwind. The US economy contracted -1.4% during the first quarter of 2022 according to the “advance” estimate of Real GDP Growth released by the Bureau of Economic Analysis. Despite these impediments, the bank loan market fared much better during the quarter than most other asset classes, such as including U.S. equities, investment grade fixed income and high yield bonds.
The technical landscape for loans also modestly eroded during Q1 2022 as both leveraged loan and collateralized loan obligations (CLO) issuances slowed given, heightened geopolitical concerns and economic uncertainty. However, loan price levels received some support from meaningfully positive retail inflows. The asset class is seeing increased investor enthusiasm for floating rate loans given expectations of rising rates over the next 12-18 months. The demand from CLOs continues to be good but at a slower pace than the records we saw in 2021.
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, 2022 by 0.74%.
Approximately half of the relative underperformance versus the index is attributable to the Fund’s expense ratio, and the remainder is largely attributed to the composition of the portfolio, which is skewed toward higher quality and larger sized issuers. During the reporting period, we generally saw mixed performances across the rating spectrum. Out-of-favor and pandemic impacted industries such as metals/minerals, energy, and gaming/leisure, where the Fund has limited exposure, 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
The loan market has outperformed equities and other credit products so far in 2022 largely due to its floating rate nature. The first quarter of the year was somewhat volatile as uncertainty surrounding the Ukrainian crisis came to light. This created a buying opportunity, particularly in primary new issuance which came at attractive pricing levels.
1
As we look forward, we expect loans to outperform other rate sensitive credit products, but we believe there will be additional periods of volatility, which may create opportunities for the Fund. We expect to see additional dispersion among individual borrowers as earnings results uncover those businesses that have successfully managed through labor, commodity inflation and supply chain realities. We continue to invest in companies with defensive features to offset these new risks. Against this backdrop we believe that the default environment will remain fairly benign this year with default rates well below historic average.
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,
Roberta Goss Todd Murray
Portfolio Manager 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.
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, new fund 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, 2022 (Unaudited) | |
3
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2022 (Unaudited) |
Principal | Current | Maturity | |||||||
Amount | Rate | Date | Value | ||||||
BANK LOANS (1) ― 95.4% | |||||||||
AEROSPACE & DEFENSE ― 3.3% | |||||||||
$ | 750,000 | American Airlines, Inc. (3 Month USD LIBOR + 4.750%, 0.75% Floor) | 5.500 | % | 4/20/2028 | $ | 761,250 | ||
300,000 | Mileage Plus Holdings, LLC (3 Month USD LIBOR + 5.250%, 1.00% Floor) | 6.250 | 7/30/2027 | 312,291 | |||||
243,028 | Peraton Corp. (1 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.500 | 2/1/2028 | 241,813 | |||||
489,975 | TransDigm, Inc. (1 Month USD LIBOR + 2.250%) | 2.707 | 5/30/2025 | 482,013 | |||||
489,975 | TransDigm, Inc. (1 Month USD LIBOR + 2.250%) | 2.707 | 8/22/2024 | 483,914 | |||||
2,281,281 | |||||||||
AUTO COMPONENTS ― 4.4% | |||||||||
488,750 | Belron Finance US, LLC (3 Month USD LIBOR + 2.250%) | 2.563 | 11/30/2026 | 484,781 | |||||
845,208 | Clarios Global, LP (1 Month USD LIBOR + 3.250%) | 3.707 | 4/30/2026 | 835,911 | |||||
56,000 | DexKo Global, Inc. (3 Month USD LIBOR + 3.750%, 0.50% Floor) | 4.250 | 9/22/2028 | 54,997 | |||||
294,000 | DexKo Global, Inc. (3 Month USD LIBOR + 3.750%, 0.50% Floor) | 4.720 | 9/29/2028 | 288,733 | |||||
497,500 | Garrett LX I SARL (3 Month USD LIBOR + 3.250%, 0.50% Floor) | 3.750 | 3/6/2028 | 485,684 | |||||
475,200 | PAI HoldCo, Inc. (3 Month USD LIBOR + 3.500%, 0.75% Floor) | 4.250 | 10/26/2027 | 471,636 | |||||
400,000 | Safe Fleet Holdings, LLC (3 Month USD SOFR + 3.750%, 0.50% Floor) | 4.270 | 3/31/2029 | 395,666 | |||||
3,017,408 | |||||||||
AUTOMOBILES ― 0.3% | |||||||||
183,702 | KAR Auction Services, Inc. (1 Month USD LIBOR + 2.250%) | 2.750 | 9/19/2026 | 182,554 | |||||
BUILDING PRODUCTS ― 1.1% | |||||||||
248,125 | Foundation Building Materials, Inc. (3 Month USD LIBOR + 3.250%, 0.50% Floor) | 3.750 | 1/31/2028 | 244,155 | |||||
250,000 | Quikrete Holdings, Inc. (1 Month USD LIBOR + 3.000%) | 3.468 | 5/12/2028 | 245,955 | |||||
250,000 | Specialty Building Products Holdings LLC (1 Month USD LIBOR + 3.750%, 0.50% Floor) | 4.250 | 10/31/2028 | 244,610 | |||||
734,720 | |||||||||
CHEMICALS ― 2.8% | |||||||||
248,125 | Alpha 3 BV (1 Month USD LIBOR + 2.500%, 0.50% Floor) | 3.000 | 3/17/2028 | 245,675 | |||||
247,500 | CPC Acquisition Corp. (3 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.760 | 1/31/2028 | 241,313 | |||||
421,818 | Herens US Holdco Corp. (3 Month USD LIBOR + 4.000%, 0.75% Floor) | 4.750 | 12/31/2028 | 412,327 | |||||
249,375 | Olympus Water US Holding Corp. (1 Month USD LIBOR + 3.750%, 0.50% Floor) | 4.250 | 9/21/2028 | 243,375 | |||||
495,000 | Plaskolite PPC Intermediate II LLC (1 Month USD LIBOR + 4.000%, 0.75% Floor) | 4.750 | 12/15/2025 | 476,313 | |||||
342,000 | PMHC II, Inc. (3 Month USD SOFR + 4.250%, 0.50% Floor) | 4.750 | 3/30/2029 | 327,179 | |||||
1,946,182 | |||||||||
COMMERCIAL SERVICES AND SUPPLIES ― 4.5% | |||||||||
746,250 | Allied Universal Holdco LLC (1 Month USD LIBOR + 3.750%, 0.50% Floor) | 4.250 | 5/12/2028 | 735,788 | |||||
496,266 | DG Investment Intermediate Holdings 2, Inc. (1 Month USD LIBOR + 3.500%, 0.75% Floor) | 4.250 | 3/31/2028 | 491,986 | |||||
500,000 | Restaurant Technologies (3 Month USD SOFR + 4.250%) | 4.250 | 3/17/2029 | 496,875 | |||||
171,766 | Garda World Security Corp. (1 Month USD LIBOR + 4.250%) | 4.710 | 10/30/2026 | 170,111 | |||||
705,856 | Prime Security Services Borrower, LLC (6 Month USD LIBOR + 2.750%, 0.75% Floor) | 3.500 | 9/23/2026 | 701,741 | |||||
486,344 | Trugreen, Ltd. (1 Month USD LIBOR + 4.000%, 0.75% Floor) | 4.750 | 10/29/2027 | 484,116 | |||||
3,080,617 |
4
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2022 (Unaudited)(Continued) |
Principal | Current | Maturity | |||||||
Amount | Rate | Date | Value | ||||||
CONSTRUCTION & ENGINEERING ― 0.1% | |||||||||
$ | 125,637 | McDermott International, Inc. (1 Month USD LIBOR + 1.000%) | 1.104 | % | 6/30/2025 | $ | 63,526 | ||
19,236 | McDermott International, Inc. (1 Month USD LIBOR + 3.000%) | 3.457 | 6/30/2024 | 12,022 | |||||
75,548 | |||||||||
CONSTRUCTION MATERIALS ― 1.7% | |||||||||
424,434 | CPG International, Inc. (12 Month USD LIBOR + 2.500%, 0.75% Floor) | 3.250 | 5/3/2024 | 421,622 | |||||
734,335 | Tamko Building Products, LLC (3 Month USD LIBOR + 3.000%) | 4.006 | 5/31/2026 | 721,330 | |||||
1,142,952 | |||||||||
CONTAINERS AND PACKAGING ― 0.8% | |||||||||
250,000 | Clydesdale Acquisition Holdings (1 Month USD SOFR + 4.000%, 0.75% Floor) | 4.750 | 6/30/2029 | 246,250 | |||||
96,986 | Graham Packaging Company, Inc (1 Month USD LIBOR + 3.000%, 0.75% Floor) | 3.750 | 8/4/2027 | 95,505 | |||||
113,850 | Kleopatra (6 Month USD LIBOR + 4.750%, 0.50% Floor) | 5.554 | 2/12/2026 | 104,102 | |||||
98,750 | Tosca Services, LLC (1 Month USD LIBOR + 3.500%, 0.75% Floor) | 4.250 | 8/18/2027 | 96,652 | |||||
542,509 | |||||||||
DISTRIBUTORS ― 0.9% | |||||||||
485,000 | FleetPride, Inc. (1 Month USD LIBOR + 4.500%) | 4.957 | 2/4/2026 | 482,071 | |||||
150,000 | SRS Distribution, Inc. (3 Month USD SOFR + 3.500%, 0.50% Floor) | 4.000 | 6/2/2028 | 148,406 | |||||
630,477 | |||||||||
DIVERSIFIED CONSUMER SERVICES ― 2.1% | |||||||||
246,875 | American Residential Services, LLC (3 Month USD LIBOR + 3.500%, 0.75% Floor) | 4.510 | 10/15/2027 | 244,098 | |||||
992,481 | Spin Holdco, Inc. (3 Month USD LIBOR + 4.000%, 0.75% Floor) | 4.750 | 3/6/2028 | 986,621 | |||||
199,500 | St. George's University Scholastic Services LLC (1 Month USD LIBOR + 3.250%, 0.50% Floor) | 3.750 | 9/30/2028 | 197,355 | |||||
1,428,074 | |||||||||
DIVERSIFIED FINANCIAL SERVICES ― 2.8% | |||||||||
372,318 | Ankura Consulting Group, LLC (1 Month USD LIBOR + 4.500%, 0.75% Floor) | 5.250 | 3/12/2028 | 369,293 | |||||
349,125 | Ascensus Holidngs, Inc. (3 Month USD LIBOR + 3.500%, 0.50% Floor) | 4.000 | 8/2/2028 | 346,943 | |||||
515,135 | First Eagle Holdings, Inc. (3 Month USD LIBOR + 2.500%) | 3.506 | 2/2/2027 | 507,086 | |||||
149,622 | Hudson River Trading LLC (1 Month USD SOFR + 3.000%) | 3.305 | 3/20/2028 | 147,581 | |||||
304,948 | Orion Advisor Solutions, Inc. (3 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.500 | 9/24/2027 | 302,668 | |||||
250,000 | Russell Investments US Institutional Holdco, Inc. (6 Month USD LIBOR + 3.500%, 1.00% Floor) | 4.500 | 5/30/2025 | 247,135 | |||||
1,920,706 | |||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES ― 4.5% | |||||||||
487,500 | CommScope, Inc. (1 Month USD LIBOR + 3.250%) | 3.707 | 2/6/2026 | 475,515 | |||||
500,000 | Consolidated Communications, Inc. (1 Month USD LIBOR + 3.500%, 0.75% Floor) | 4.250 | 2/10/2027 | 471,518 | |||||
488,775 | CSC Holdings, LLC (1 Month USD LIBOR + 2.500%) | 2.897 | 4/15/2027 | 481,199 | |||||
492,318 | Global Tel*Link Corp. (1 Month USD LIBOR + 4.250%) | 4.707 | 11/28/2025 | 469,329 | |||||
97,007 | Securus Technologies Holdings, LLC (3 Month USD LIBOR + 4.500%, 1.00% Floor) | 5.500 | 6/20/2024 | 92,641 | |||||
250,000 | UPC Financing Partnership (1 Month USD LIBOR + 3.000%) | 3.397 | 1/31/2029 | 247,240 | |||||
422,421 | West Corp. (3 Month USD LIBOR + 4.000%, 1.00% Floor) | 5.000 | 10/10/2024 | 387,284 | |||||
500,000 | Ziggo Financing Partnership (1 Month USD LIBOR + 2.500%) | 2.897 | 4/17/2028 | 493,437 | |||||
3,118,163 | |||||||||
ELECTRIC UTILITIES ― 1.0% | |||||||||
725,813 | Brookfield WEC Holdings, Inc. (1 Month USD LIBOR + 2.750%, 0.50% Floor) | 3.250 | 8/1/2025 | 714,134 |
5
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2022 (Unaudited)(Continued) |
Principal | Current | Maturity | |||||||
Amount | Rate | Date | Value | ||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS ― 2.9% | |||||||||
$ | 350,000 | CTC Holdings, LP (3 Month USD SOFR + 5.000%) | 5.530 | % | 2/14/2029 | $ | 343,875 | ||
249,364 | Dcert Buyer, Inc. (1 Month USD LIBOR + 4.000%) | 4.209 | 10/16/2026 | 247,926 | |||||
250,000 | Escape Velocity Holdings, Inc. (3 Month USD LIBOR + 4.250%, 0.50% Floor) | 4.750 | 10/31/2028 | 245,938 | |||||
409,461 | Plantronics, Inc. (1 Month USD LIBOR + 2.500%) | 2.709 | 7/2/2025 | 406,902 | |||||
762,666 | Ultra Clean Holdings, Inc. (1 Month USD LIBOR + 3.750%) | 3.959 | 8/27/2025 | 762,029 | |||||
2,006,670 | |||||||||
ENERGY EQUIPMENT & SERVICES ― 0.8% | |||||||||
347,153 | EnergySolutions, LLC (3 Month USD LIBOR + 3.750%, 1.00% Floor) | 4.750 | 5/2/2025 | 341,078 | |||||
217,949 | Yak Access, LLC (3 Month USD LIBOR + 5.000%) | 5.508 | 7/2/2025 | 194,216 | |||||
535,294 | |||||||||
FOOD PRODUCTS ― 3.0% | |||||||||
246,875 | Arterra Wines Canada, Inc. (3 Month USD LIBOR + 3.500%, 0.75% Floor) | 4.510 | 11/19/2027 | 244,900 | |||||
342,641 | Froneri US, Inc. (1 Month USD LIBOR + 2.250%) | 2.707 | 1/29/2027 | 337,134 | |||||
244,593 | Houston Foods, Inc. (1 Month USD LIBOR + 5.750%) | 6.207 | 6/27/2025 | 231,140 | |||||
250,000 | Hunter US Bidco, Inc. (3 Month USD LIBOR + 4.250%, 1.00% Floor) | 5.250 | 8/21/2028 | 249,375 | |||||
141,818 | Naked Juice (3 Month USD SOFR + 3.250%, 0.50% Floor) | 3.750 | 1/19/2029 | 139,792 | |||||
8,182 | Naked Juice DD (1 Month USD SOFR + 3.250%, 0.50% Floor) | 3.750 | 1/19/2029 | 8,065 | |||||
5,155 | Pacific Bells LLC (1 Month USD SOFR + 4.500%) (2) | 5.000 | 10/14/2028 | 5,116 | |||||
493,608 | Pacific Bells LLC (3 Month USD LIBOR + 4.500%, 0.50% Floor) | 5.000 | 10/14/2028 | 489,907 | |||||
350,000 | Sycamore Buyer, LLC (1 Month USD SOFR + 2.250%, 0.50% Floor) | 3.000 | 9/29/2028 | 344,895 | |||||
2,050,324 | |||||||||
HEALTH CARE EQUIPMENT & SUPPLIES ― 2.7% | |||||||||
229,228 | LifeScan Global Corp. (3 Month USD LIBOR + 6.000%) | 6.214 | 10/1/2024 | 219,486 | |||||
488,750 | National Seating & Mobility, Inc. (1 Month USD LIBOR + 5.250%) | 5.707 | 11/12/2026 | 485,084 | |||||
724,516 | Phoenix Guarantor, Inc. (1 Month USD LIBOR + 3.250%) | 3.707 | 3/5/2026 | 717,612 | |||||
475,644 | YI, LLC (1 Month USD LIBOR + 4.000%, 1.00% Floor) | 5.000 | 11/6/2024 | 469,996 | |||||
1,892,178 | |||||||||
HEALTH CARE PROVIDERS & SERVICES ― 10.1% | |||||||||
250,000 | Accelerated Health Systems, LLC (6 Month USD SOFR + 4.250%) | 5.160 | 3/31/2029 | 248,908 | |||||
482,525 | ADMI Corp. B (1 Month USD LIBOR + 2.750%) | 3.207 | 4/30/2025 | 474,382 | |||||
248,750 | ADMI Corp. B3 (1 Month USD LIBOR + 3.500%, 0.50% Floor) | 4.000 | 12/23/2027 | 246,393 | |||||
724,962 | Bracket Intermediate Holding Corp. (3 Month USD LIBOR + 4.250%) | 4.466 | 9/30/2025 | 720,278 | |||||
164,602 | Confluent Health LLC B (1 Month USD LIBOR + 4.000%, 0.50% Floor) | 4.500 | 11/30/2028 | 163,162 | |||||
35,398 | Confluent Health LLC DD (Prime + 3.000%) (2) | 6.500 | 10/31/2028 | 35,089 | |||||
737,491 | Da Vinci Purchaser Corp. (3 Month USD LIBOR + 4.000%, 1.00% Floor) | 5.000 | 12/13/2029 | 735,953 | |||||
131,100 | Embecta Corp. (3 Month USD SOFR + 3.000%, 0.50% Floor) | 3.500 | 2/28/2029 | 129,567 | |||||
490,747 | Eyecare Partners LLC (3 Month USD LIBOR + 3.750%) | 3.974 | 2/26/2027 | 485,304 | |||||
250,000 | MJH Healthcare Holdings LLC (1 Month USD SOFR + 3.500%, 0.50% Floor) | 4.000 | 12/17/2028 | 248,125 | |||||
368,465 | National Mentor Holdings, Inc. (1 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.500 | 2/19/2026 | 357,461 | |||||
11,662 | National Mentor Holdings, Inc. (3 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.760 | 2/19/2027 | 11,314 | |||||
248,125 | Pacific Dental Services, Inc. (1 Month USD LIBOR + 3.250%, 0.75% Floor) | 4.000 | 5/31/2028 | 245,799 |
6
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2022 (Unaudited)(Continued) |
Principal | Current | Maturity | |||||||
Amount | Rate | Date | Value | ||||||
HEALTH CARE PROVIDERS & SERVICES ― 10.1% (Continued) | |||||||||
$ | 496,231 | Pathway Vet Alliance LLC (1 Month USD LIBOR + 3.750%) | 3.855 | % | 3/31/2027 | $ | 492,202 | ||
303,947 | Pediatric Associates Holding Co., LLC (6 Month USD LIBOR + 3.250%, 0.50% Floor) | 3.750 | 2/8/2029 | 300,718 | |||||
46,053 | Pediatric Associates Holding Co., LLC (3 Month USD LIBOR + 3.250%, 0.50% Floor) (2) | 3.750 | 2/8/2029 | 45,563 | |||||
956,750 | Radiology Partners, Inc. (1 Month USD LIBOR + 4.250%) | 4.697 | 7/9/2025 | 946,158 | |||||
248,125 | Radnet Management, Inc. (3 Month USD LIBOR + 3.000%, 0.75% Floor) | 3.750 | 4/24/2028 | 245,179 | |||||
245,023 | Upstream Newco, Inc. (1 Month USD SOFR + 4.250%) | 4.677 | 11/20/2026 | 243,953 | |||||
744,289 | US Renal Care, Inc. (1 Month USD LIBOR + 5.000%) | 5.209 | 6/26/2026 | 686,607 | |||||
7,062,115 | |||||||||
HEALTH CARE TECHNOLOGY ― 4.7% | |||||||||
493,671 | Ensemble RCM, LLC (3 Month USD LIBOR + 3.750%) | 4.049 | 7/24/2026 | 491,767 | |||||
490,000 | Navicure, Inc. (1 Month USD LIBOR + 4.000%) | 4.457 | 10/31/2026 | 489,388 | |||||
495,000 | Project Ruby Ultimate Parent Corp. (1 Month USD LIBOR + 3.250%, 0.75% Floor) | 4.000 | 3/31/2028 | 490,793 | |||||
491,250 | Tivity Health, Inc. (1 Month USD LIBOR + 4.250%) | 4.707 | 6/23/2028 | 485,662 | |||||
967,683 | Verscend Holding Corp. (1 Month USD LIBOR + 4.000%) | 4.457 | 8/27/2025 | 966,474 | |||||
66,667 | Zelis Payments Buyer, Inc. (1 Month USD LIBOR + 3.500%) (2) | 3.631 | 9/30/2026 | 66,104 | |||||
364,819 | Zelis Payments Buyer, Inc. (1 Month USD LIBOR + 3.500%) | 3.731 | 9/30/2026 | 361,742 | |||||
3,351,930 | |||||||||
HOTELS RESTAURANTS & LEISURE ― 4.3% | |||||||||
487,500 | Aimbridge Acquisition Co, Inc. (1 Month USD LIBOR + 3.750%) | 4.207 | 2/2/2026 | 478,894 | |||||
485,000 | AMC Entertainment, Inc. (1 Month USD LIBOR + 3.000%) | 3.352 | 4/30/2026 | 434,094 | |||||
492,500 | Caesars Resort Collection, LLC (1 Month USD LIBOR +3.500%) | 3.709 | 7/21/2025 | 491,515 | |||||
975,056 | Diamond Sports Group, LLC (1 Month USD SOFR + 3.250%) | 3.445 | 8/24/2026 | 337,920 | |||||
398,000 | Pug, LLC (1 Month USD LIBOR + 4.250%, 0.50% Floor) | 4.750 | 2/12/2027 | 396,508 | |||||
150,000 | Scientific Games Holdings LP (3 Month USD SOFR + 3.500%, 0.50% Floor) | 4.000 | 2/3/2029 | 148,848 | |||||
680,506 | Scientific Games International, Inc. (1 Month USD LIBOR + 2.750%) | 3.207 | 8/14/2024 | 678,808 | |||||
2,966,587 | |||||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS ― 3.4% | |||||||||
188,949 | Array Technologies, Inc. (3 Month USD LIBOR + 3.250%, 0.50% Floor) | 3.750 | 10/8/2027 | 184,461 | |||||
484,796 | Calpine Corp. (1 Month USD LIBOR + 2.500%) | 2.960 | 12/16/2027 | 481,679 | |||||
50,972 | Lightstone Holdco LLC (3 Month USD LIBOR + 3.750%, 1.00% Floor) | 4.750 | 1/30/2024 | 46,384 | |||||
903,727 | Lightstone Holdco, LLC (3 Month USD LIBOR + 3.750%, 1.00% Floor) | 4.750 | 1/30/2024 | 822,392 | |||||
855,000 | Talen Energy Supply, LLC (1 Month USD LIBOR + 3.750%) | 4.207 | 6/26/2026 | 787,134 | |||||
2,322,050 | |||||||||
INDUSTRIAL CONGLOMERATES ― 1.4% | |||||||||
961,106 | CD&R Hydra Buyer, Inc. (1 Month USD LIBOR + 4.250%, 1.00% Floor) | 5.250 | 12/11/2024 | 950,534 | |||||
INSURANCE ― 2.4% | |||||||||
350,000 | AssuredPartners, Inc. (1 Month USD SOFR + 3.500%, 0.50% Floor) | 4.000 | 2/12/2027 | 346,610 | |||||
98,750 | Asurion, LLC (1 Month USD LIBOR + 3.250%) | 3.707 | 12/23/2026 | 96,754 | |||||
246,884 | Baldwin Risk Partners, LLC (1 Month USD LIBOR + 3.500%, 0.50% Floor) | 4.000 | 10/14/2027 | 245,033 | |||||
490,000 | Broadstreet Partners, Inc. (1 Month USD LIBOR + 3.000%) | 3.457 | 1/22/2027 | 481,903 | |||||
496,490 | OneDigital Borrower LLC (6 Month USD SOFR + 4.250%, 0.50% Floor) | 4.750 | 11/16/2027 | 494,010 | |||||
1,664,310 |
7
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2022 (Unaudited)(Continued) |
Principal | Current | Maturity | |||||||
Amount | Rate | Date | Value | ||||||
INTERNET SOFTWARE & SERVICES ― 3.5% | |||||||||
$ | 197,500 | Arches Buyer, Inc. (1 Month USD LIBOR + 3.250%, 0.50% Floor) | 3.750 | % | 12/6/2027 | $ | 194,590 | ||
300,000 | Austin HoldCo., Virtusa (1 Month USD SOFR + 3.750%, 0.75% Floor) | 4.500 | 2/8/2029 | 297,938 | |||||
497,250 | Constant Contact, Inc. (6 Month USD LIBOR + 4.000%, 0.75% Floor) | 4.750 | 2/10/2028 | 492,278 | |||||
498,750 | NAB Holdings LLC (3 Month USD SOFR + 3.000%, 0.50% Floor) | 3.800 | 11/17/2028 | 493,216 | |||||
247,500 | Playtika Holding Corp. (1 Month USD LIBOR + 2.750%) | 3.207 | 3/13/2028 | 244,294 | |||||
478,750 | Research Now Group, Inc. (6 Month USD LIBOR + 5.500%, 1.00% Floor) | 6.500 | 12/20/2024 | 471,518 | |||||
250,000 | VFH Parent T/L (1 Month USD SOFR + 3.000%, 0.50% Floor) | 3.500 | 1/31/2029 | 248,021 | |||||
2,441,855 | |||||||||
MACHINERY ― 3.1% | |||||||||
347,375 | Madison IAQ, LLC (6 Month USD LIBOR + 3.250%, 0.50% Floor) | 4.524 | 6/21/2028 | 342,889 | |||||
246,700 | MKS Instruments, Inc. (3 Month USD LIBOR + 2.250%, 0.50% Floor) | 2.750 | 12/31/2028 | 245,080 | |||||
307,222 | Patriot Container Corp. (1 Month USD LIBOR + 3.750%, 1.00% Floor) | 4.750 | 3/20/2025 | 295,701 | |||||
393,000 | Star US Bidco, LLC (1 Month USD LIBOR + 4.250%, 1.00% Floor) | 5.250 | 3/31/2027 | 389,888 | |||||
704,808 | Titan Acquisition, Ltd. (6 Month USD LIBOR + 3.000%) | 3.167 | 3/28/2025 | 691,092 | |||||
148,134 | TK Elevator US Newco, Inc. (6 Month USD LIBOR + 3.500%, 0.50% Floor) | 4.019 | 7/29/2027 | 147,024 | |||||
2,111,674 | |||||||||
MEDIA ― 7.2% | |||||||||
468,789 | AppLovin Corp. (1 Month USD LIBOR + 3.250%) | 3.707 | 8/7/2025 | 467,069 | |||||
349,125 | Ascend Learning LLC (1 Month USD LIBOR + 3.500%, 0.50% Floor) | 4.000 | 11/18/2028 | 345,721 | |||||
491,667 | Castle US Holding Corp. (1 Month USD LIBOR + 3.750%) | 4.207 | 1/27/2027 | 476,457 | |||||
545,875 | CMI Marketing, Inc. (1 Month USD LIBOR + 4.250%, 0.50% Floor) | 4.750 | 3/23/2028 | 544,511 | |||||
244,375 | Creative Artists Agency, LLC (1 Month USD LIBOR + 3.750%) | 4.207 | 11/20/2026 | 244,299 | |||||
352,500 | Entravision Communication Corp. (1 Month USD LIBOR + 2.750%) | 3.207 | 11/15/2024 | 344,789 | |||||
150,000 | Fertitta Entertainment LLC/NV (1 Month USD SOFR + 4.000%, 0.50% Floor) | 4.500 | 1/31/2029 | 149,447 | |||||
424,821 | Gray Television, Inc. (1 Month USD LIBOR + 2.500%) | 2.731 | 1/2/2026 | 422,256 | |||||
222,900 | iHeartCommunications, Inc. (1 Month USD LIBOR + 3.250%, 0.50% Floor) | 3.750 | 5/1/2026 | 222,134 | |||||
852,909 | Terrier Media Buyer, Inc. (1 Month USD LIBOR + 3.500%) | 3.957 | 12/17/2026 | 841,045 | |||||
456,434 | Univision Communications, Inc. (1 Month USD LIBOR + 3.250%, 0.75% Floor) | 4.000 | 3/13/2026 | 454,533 | |||||
446,034 | Vericast Corp. (3 Month USD LIBOR + 7.750%, 1.00% Floor) | 8.750 | 6/16/2026 | 373,330 | |||||
197,500 | Weld North Education, LLC (1 Month USD LIBOR + 3.750%, 0.50% Floor) | 4.250 | 12/21/2027 | 196,216 | |||||
5,081,807 | |||||||||
METALS & MINING ― 0.6% | |||||||||
112,973 | GrafTech Finance, Inc. (1 Month USD LIBOR + 3.000%, 0.50% Floor) | 3.500 | 2/12/2025 | 111,984 | |||||
286,195 | MRC Global, Inc. (1 Month USD LIBOR + 3.000%) | 3.457 | 9/20/2024 | 282,618 | |||||
394,602 | |||||||||
OIL, GAS & CONSUMABLE FUELS ― 2.1% | |||||||||
478,854 | Northriver Midstream TLB (3 Month USD LIBOR + 3.250%) | 3.464 | 10/31/2025 | 475,564 | |||||
987,500 | Prairie ECI Acquiror, LP (1 Month USD LIBOR + 4.750%) | 5.207 | 3/11/2026 | 967,029 | |||||
1,442,593 | |||||||||
PHARMACEUTICALS ― 3.0% | |||||||||
247,500 | Alkermes, Inc. (3 Month USD LIBOR + 2.500%, 0.50% Floor) | 3.000 | 3/9/2026 | 243,169 |
8
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2022 (Unaudited)(Continued) |
Principal | Current | Maturity | |||||||
Amount | Rate | Date | Value | ||||||
PHARMACEUTICALS ― 3.0% (Continued) | |||||||||
$ | 662,821 | Alvogen Pharma U.S., Inc. (3 Month USD LIBOR + 5.250%, 1.00% Floor) | 6.250 | % | 12/29/2023 | $ | 621,809 | ||
969,426 | Amneal Pharmaceuticals, LLC (1 Month USD LIBOR + 3.500%) | 4.000 | 5/5/2025 | 956,823 | |||||
241,042 | Organon & Co. (6 Month USD LIBOR + 3.000%, 0.50% Floor) | 3.563 | 6/2/2028 | 240,138 | |||||
2,061,939 | |||||||||
PROFESSIONAL SERVICES ― 1.2% | |||||||||
250,000 | AG Group Holdings T/L (1 Month USD SOFR + 4.250%, 0.50% Floor) | 4.750 | 2/28/2029 | 249,220 | |||||
348,250 | APX Group, Inc. (1 Month USD LIBOR + 3.500%, 0.50% Floor) | 4.000 | 7/10/2028 | 344,023 | |||||
248,750 | Bingo Industries, Ltd. (3 Month USD LIBOR + 3.500%, 0.50% Floor) | 4.500 | 7/7/2028 | 246,884 | |||||
840,127 | |||||||||
SOFTWARE ― 5.0% | |||||||||
36,232 | Athenahealth Inc. (1 Month USD SOFR + 3.500%, 0.50% Floor) (2) | 4.000 | 1/14/2027 | 35,915 | |||||
213,768 | Athenahealth Inc. B (1 Month USD SOFR + 3.500%, 0.50% Floor) | 4.000 | 1/26/2029 | 211,898 | |||||
788,127 | Brave Parent Holdings, Inc. (1 Month USD LIBOR + 4.000%) | 4.457 | 4/18/2025 | 781,065 | |||||
149,622 | Idera, Inc. T/L (1 Month USD LIBOR + 3.750%, 0.75% Floor) | 4.500 | 3/2/2028 | 147,228 | |||||
493,750 | LogMeIn, Inc. (1 Month USD LIBOR + 4.750%) | 5.218 | 8/31/2027 | 485,959 | |||||
249,375 | Magenta Buyer, LLC (3 Month USD LIBOR + 5.000%, 0.75% Floor) | 5.750 | 7/31/2028 | 247,879 | |||||
604,815 | Project Alpha Intermediate Holding, Inc. (1 Month USD LIBOR + 4.000%) | 4.300 | 4/26/2024 | 601,917 | |||||
250,000 | Seattle Spinco T/L B (1 Month USD SOFR + 4.000%, 0.50% Floor) | 4.500 | 2/28/2027 | 247,500 | |||||
249,370 | Symplr Software, Inc. (3 Month USD LIBOR + 4.500%, 0.75% Floor) | 5.250 | 12/22/2027 | 246,128 | |||||
490,000 | VS Buyer, LLC (1 Month USD LIBOR + 3.000%) | 3.457 | 2/26/2027 | 486,734 | |||||
3,492,223 | |||||||||
SPECIALTY RETAIL ― 1.5% | |||||||||
246,875 | Harbor Freight Tools USA, Inc. (1 Month USD LIBOR + 2.750%, 0.50% Floor) | 3.250 | 10/19/2027 | 242,170 | |||||
276,592 | Heartland Dental, LLC (1 Month USD LIBOR + 3.500%) | 3.957 | 5/21/2025 | 273,826 | |||||
494,924 | MED ParentCo, LP (1 Month USD LIBOR + 4.250%) | 4.707 | 8/31/2026 | 490,593 | |||||
1,006,589 | |||||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS ― 1.6% | |||||||||
558,279 | LTI Holdings, Inc. (1 Month USD LIBOR + 3.500%) | 3.957 | 9/6/2025 | 546,647 | |||||
586,364 | Sonicwall US Holdings, Inc. (3 Month USD LIBOR + 3.500%, 0.50% Floor) | 4.250 | 5/16/2025 | 578,304 | |||||
1,124,951 | |||||||||
WATER TREATMENT SYSTEMS ― 0.6% | |||||||||
325,926 | Culligan (1 Month USD SOFR + 4.000%, 0.50% Floor) | 4.500 | 7/31/2028 | 322,973 | |||||
74,074 | Culligan DD (1 Month USD SOFR + 4.000%, 0.50% Floor) (2) | 4.500 | 7/31/2028 | 73,403 | |||||
396,376 | |||||||||
TOTAL BANK LOANS (COST $67,415,072) | $ | 66,012,053 |
9
Ziegler Senior Floating Rate Fund | |||||||
SCHEDULE OF INVESTMENTS | |||||||
March 31, 2022 (Unaudited)(Continued) | |||||||
Shares | Value | ||||||
COMMON STOCK ― 0.1% | |||||||
CONSTRUCTION & ENGINEERING ― 0.1% | |||||||
53,218 | Mcdermott International Ltd. (3) | $ | 35,124 | ||||
TOTAL COMMON STOCKS (Cost $467,382) | $ | 35,124 | |||||
EXCHANGE TRADED FUND ― 2.3% | |||||||
72,696 | Invesco Senior Loan ETF | 1,582,592 | |||||
TOTAL EXCHANGE TRADED FUND (COST $1,609,202) | $ | 1,582,592 | |||||
SHORT TERM INVESTMENT ― 6.7% | |||||||
4,603,416 | STIF-Government & Agency Portfolio, 0.26% (4) | 4,603,416 | |||||
TOTAL SHORT TERM INVESTMENT (COST $4,603,416) | $ | 4,603,416 | |||||
TOTAL INVESTMENTS ― 104.5% (Cost $74,095,072) | 72,233,185 | ||||||
Liabilities in Excess of Other Assets ― (4.5)% | (3,084,044 | ) | |||||
TOTAL NET ASSETS ― 100.0% | $ | 69,149,141 | |||||
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) Unfunded or partially unfunded loan commitment. Principal pledged has not been drawn. | ||||||||
(3) Non income producing. | ||||||||
(4) 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. |
10
Ziegler Senior Floating Rate Fund | ||||
STATEMENT OF ASSETS AND LIABILITIES | ||||
March 31, 2022 (Unaudited) | ||||
Assets: | ||||
Investments in securities at value (cost $74,095,072) | $ | 72,233,185 | ||
Cash | 505,329 | |||
Receivables: | ||||
Investment securities sold | 23,463 | |||
Interest | 176,812 | |||
Prepaid expenses | 41,664 | |||
Total assets | 72,980,453 | |||
Liabilities: | ||||
Payables: | ||||
Investment securities purchased | 3,715,508 | |||
Distributions to shareholders | 27,329 | |||
Due to Investment Adviser | 840 | |||
Distribution Fees | 29,048 | |||
Accrued expenses and other liabilities | 58,587 | |||
Total liabilities | 3,831,312 | |||
Net Assets | $ | 69,149,141 | ||
Components of Net Assets: | ||||
Paid-in capital | $ | 74,084,159 | ||
Total accumulated loss | (4,935,018 | ) | ||
Net Assets | $ | 69,149,141 | ||
Class A: | ||||
Net Assets | $ | 4,772,230 | ||
Issued and Outstanding | 194,979 | |||
Net Asset Value and Redemption Price^ | $ | 24.48 | ||
Maximum Public Offering Price (based on maximum initial sales charge of 4.25%) | $ | 25.57 | ||
Class C: | ||||
Net Assets | $ | 2,651,048 | ||
Issued and Outstanding | 108,953 | |||
Net Asset Value, Redemption Price* and Offering Price Per Share | $ | 24.33 | ||
Institutional Class: | ||||
Net Assets | $ | 61,725,863 | ||
Issued and Outstanding | 2,528,056 | |||
Net Asset Value, Redemption Price and Offering Price Per Share | $ | 24.42 |
^ 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 are redeemed 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.
11
Ziegler Senior Floating Rate Fund | ||||
STATEMENT OF OPERATIONS | ||||
For the Six Months Ended March 31, 2022 (Unaudited) | ||||
Investment Income: | ||||
Dividend income | $ | 26,868 | ||
Interest income | 1,387,558 | |||
Bank loan fee income | 21,128 | |||
Total investment income | 1,435,554 | |||
Expenses: | ||||
Advisory fees (Note 3) | 224,891 | |||
Administration and fund accounting fees (Note 3) | 72,800 | |||
Transfer agent fees and expenses (Note 3) | 37,241 | |||
Registration fees | 24,124 | |||
Distribution fees (Note 6) | 22,202 | |||
Legal fees | 16,311 | |||
Compliance Fee (Note 3) | 10,966 | |||
Audit fees | 10,287 | |||
Custody fees (Note 3) | 9,849 | |||
Trustee fees (Note 3) | 9,698 | |||
Shareholder reporting fees | 4,760 | |||
Service Fee | 2,611 | |||
Insurance fees | 1,333 | |||
Interest expense | 81 | |||
Miscellaneous expenses | 4,769 | |||
Total expenses | 451,923 | |||
Expenses waived by the Adviser (Note 3) | (173,609 | ) | ||
Net expenses | 278,314 | |||
Net investment income | 1,157,240 | |||
Realized and Unrealized Loss on Investments | ||||
Net realized loss on investments | (1,209,368 | ) | ||
Net change in unrealized appreciation/depreciation on investments | (66,217 | ) | ||
Net realized and unrealized loss on investments | (1,275,585 | ) | ||
Net decrease in net assets resulting from operations | $ | (118,345 | ) | |
The accompanying notes are an integral part of these financial statements.
12
Ziegler Senior Floating Rate Fund | ||||||||
STATEMENTS OF CHANGES IN NET ASSETS | ||||||||
For the Six Months Ended March 31, 2022 (Unaudited) | For the Year Ended September 30, 2021 | |||||||
Increase (Decrease) in Net Assets from: | ||||||||
Operations: | ||||||||
Net investment income | $ | 1,157,240 | $ | 2,499,086 | ||||
Net realized gain (loss) on investments | (1,209,368 | ) | 155,874 | |||||
Net change in unrealized appreciation/depreciation on investments | (66,217 | ) | 1,496,138 | |||||
Net increase (decrease) in net assets resulting from operations | (118,345 | ) | 4,151,098 | |||||
Distributions to shareholders: | ||||||||
Class A Shares | (75,447 | ) | (162,814 | ) | ||||
Class C Shares | (39,146 | ) | (181,836 | ) | ||||
Institutional Class Shares | (1,042,645 | ) | (2,154,368 | ) | ||||
Total distributions to shareholders | (1,157,238 | ) | (2,499,018 | ) | ||||
Capital Transactions: | ||||||||
Net proceeds from shares sold: | ||||||||
Class A Shares | 251,840 | 495,161 | ||||||
Class C Shares | 113,000 | 770,398 | ||||||
Institutional Class Shares | 3,349,004 | 9,511,597 | ||||||
Reinvestment of distributions: | ||||||||
Class A Shares | 16,535 | 38,272 | ||||||
Class C Shares | 30,282 | 157,313 | ||||||
Institutional Class Shares | 950,618 | 1,962,780 | ||||||
Cost of shares repurchased: | ||||||||
Class A Shares | (141,683 | ) | (664,553 | ) | ||||
Class C Shares | (1,681,414 | ) | (4,911,365 | ) | ||||
Institutional Class Shares | (2,536,943 | ) | (7,733,993 | ) | ||||
Net increase (decrease) in net assets from capital transactions | 351,239 | (374,389 | ) | |||||
Total Increase (Decrease) in Net Assets | (924,344 | ) | 1,277,691 | |||||
Net Assets: | ||||||||
Beginning of period | 70,073,485 | 68,795,794 | ||||||
End of period | $ | 69,149,141 | $ | 70,073,485 | ||||
Capital Share Transactions: | ||||||||
Shares sold: | ||||||||
Class A Shares | 10,199 | 20,052 | ||||||
Class C Shares | 4,565 | 31,187 | ||||||
Institutional Class Shares | 135,324 | 383,247 | ||||||
Shares reinvested: | ||||||||
Class A Shares | 670 | 1,544 | ||||||
Class C Shares | 1,232 | 6,382 | ||||||
Institutional Class Shares | 38,589 | 79,315 | ||||||
Shares repurchased: | ||||||||
Class A Shares | (5,811 | ) | (26,654 | ) | ||||
Class C Shares | (68,210 | ) | (198,771 | ) | ||||
Institutional Class Shares | (102,923 | ) | (311,800 | ) | ||||
Net decrease in shares outstanding | 13,635 | (15,498 | ) | |||||
The accompanying notes are an integral part of these financial statements.
13
Ziegler Senior Floating Rate Fund | |||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||
Class A Shares | |||||||||||||
Per Share Data for a Share Outstanding Throughout Each Period Presented. | |||||||||||||
For the Six Months Ended March 31, 2022 (Unaudited) | September 30, 2021 | September 30, 2020 | September 30, 2019 | September 30, 2018 | September 30, 2017 | ||||||||
Net Asset Value, Beginning of Year | $24.92 | $24.34 | $25.18 | $26.01 | $25.87 | $25.78 | |||||||
INCOME FROM INVESTMENT OPERATIONS: | |||||||||||||
Net investment income(1) | 0.39 | 0.84 | 1.05 | 1.35 | 1.22 | 1.08 | |||||||
Net realized and unrealized gain (loss) on investments | (0.44) | 0.58 | (0.83) | (0.78) | 0.14 | 0.13 | |||||||
Total Gain from Investment Operations | (0.05) | 1.42 | 0.22 | 0.57 | 1.36 | 1.21 | |||||||
LESS DISTRIBUTIONS: | |||||||||||||
From net investment income | (0.39) | (0.84) | (1.05) | (1.35) | (1.14) | (1.05) | |||||||
From net realized gain on investments | - | - | (0.01) | (0.05) | (0.08) | (0.07) | |||||||
Total Distributions | (0.39) | (0.84) | (1.06) | (1.40) | (1.22) | (1.12) | |||||||
Redemption fee proceeds | - | - | - | 0.00 | (2) | - | - | ||||||
Net Asset Value, End of Year | $24.48 | $24.92 | $24.34 | $25.18 | $26.01 | $25.87 | |||||||
Total Return(3) | -0.24% | (4) | 5.90% | 0.97% | 2.27% | 5.37% | 4.80% | ||||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||
Net assets, end of year (in thousands) | $4,772 | $4,734 | $4,746 | $5,638 | $8,563 | $265 | |||||||
Ratio of expenses to average net assets | |||||||||||||
Before fees waived / reimbursed by the Adviser | 1.48% | (5) | 1.45% | 1.43% | 1.31% | 1.35% | 1.64% | ||||||
After fees waived / reimbursed by the Adviser | 0.99% | (5) | 0.99% | 0.99% | 0.99% | 0.99% | 0.99% | ||||||
Ratio of net investment income to average net assets | |||||||||||||
After fees waived / reimbursed by the Adviser | 3.16% | (5) | 3.38% | 4.36% | 5.28% | 4.69% | 4.22% | ||||||
Portfolio turnover rate(6) | 15% | (4) | 40% | 41% | 61% | 35% | 105% | ||||||
(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.
14
Ziegler Senior Floating Rate Fund | |||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||
Class C Shares | |||||||||||||
Per Share Data for a Share Outstanding Throughout Each Period Presented. | |||||||||||||
For the Six Months Ended March 31, 2022 (Unaudited) | September 30, 2021 | September 30, 2020 | September 30, 2019 | September 30, 2018 | September 30, 2017 | ||||||||
Net Asset Value, Beginning of Year | $24.78 | $24.20 | $25.12 | $25.96 | $25.83 | $25.75 | |||||||
INCOME FROM INVESTMENT OPERATIONS: | |||||||||||||
Net investment income(1) | 0.30 | 0.65 | 0.87 | 1.16 | 1.01 | 0.90 | |||||||
Net realized and unrealized gain (loss) on investments | (0.45) | 0.58 | (0.92) | (0.78) | 0.16 | 0.13 | |||||||
Total Gain (Loss) from Investment Operations | (0.15) | 1.23 | (0.05) | 0.38 | 1.17 | 1.03 | |||||||
LESS DISTRIBUTIONS: | |||||||||||||
From net investment income | (0.30) | (0.65) | (0.86) | (1.17) | (0.96) | (0.88) | |||||||
From net realized gain on investments | - | - | (0.01) | (0.05) | (0.08) | (0.07) | |||||||
Total Distributions | (0.30) | (0.65) | (0.87) | (1.22) | (1.04) | (0.95) | |||||||
Net Asset Value, End of Year | $24.33 | $24.78 | $24.20 | $25.12 | $25.96 | $25.83 | |||||||
Total Return(2) | -0.63% | (4) | 5.12% | -0.12% | 1.52% | 4.56% | 4.06% | ||||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||
Net assets, end of year (in thousands) | $2,651 | $4,247 | $8,049 | $9,894 | $2,665 | $713 | |||||||
Ratio of expenses to average net assets | |||||||||||||
Before fees waived / reimbursed by the Adviser | 2.24% | (5) | 2.19% | 2.18% | 2.07% | 2.12% | 2.39% | ||||||
After fees waived / reimbursed by the Adviser | 1.74% | (5) | 1.74% | 1.74% | 1.74% | 1.74% | 1.74% | ||||||
Ratio of net investment income to average net assets | |||||||||||||
After fees waived / reimbursed by the Adviser | 2.41% | (5) | 2.63% | 3.60% | 4.56% | 3.88% | 3.55% | ||||||
Portfolio turnover rate(3) | 15% | (4) | 40% | 41% | 61% | 35% | 105% | ||||||
(1) | Computed using average shares method. | ||||||||||||
(2) | Performance reported does not reflect sales charges. | ||||||||||||
(3) | Portfolio turnover rate is calculated for the Fund without distinguishing between classes. | ||||||||||||
(4) | Not Annualized. | ||||||||||||
(5) | Annualized. |
The accompanying notes are an integral part of these financial statements.
15
Ziegler Senior Floating Rate Fund | |||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||
Institutional Class Shares | |||||||||||||
Per Share Data for a Share Outstanding Throughout Each Period Presented. | |||||||||||||
For the Six Months Ended March 31, 2022 (Unaudited) | September 30, 2021 | September 30, 2020 | September 30, 2019 | September 30, 2018 | September 30, 2017 | ||||||||
Net Asset Value, Beginning of Year | $24.86 | $24.28 | $25.19 | $26.02 | $25.88 | $25.79 | |||||||
INCOME FROM INVESTMENT OPERATIONS: | |||||||||||||
Net investment income(1) | 0.42 | 0.90 | 1.10 | 1.41 | 1.25 | 1.14 | |||||||
Net realized and unrealized gain (loss) on investments | (0.44) | 0.58 | (0.90) | (0.77) | 0.17 | 0.14 | |||||||
Total Gain from Investment Operations | (0.02) | 1.48 | 0.20 | 0.64 | 1.42 | 1.28 | |||||||
LESS DISTRIBUTIONS: | |||||||||||||
From net investment income | (0.42) | (0.90) | (1.10) | (1.42) | (1.20) | (1.12) | |||||||
From net realized gain on investments | - | - | (0.01) | (0.05) | (0.08) | (0.07) | |||||||
Total Distributions | (0.42) | (0.90) | (1.11) | (1.47) | (1.28) | (1.19) | |||||||
Net Asset Value, End of Year | $24.42 | $24.86 | $24.28 | $25.19 | $26.02 | $25.88 | |||||||
Total Return | -0.13% | (3) | 6.17% | 0.93% | 2.56% | 5.62% | 5.06% | ||||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||
Net assets, end of year (in thousands) | $61,726 | $61,093 | $56,001 | $65,542 | $80,262 | $49,183 | |||||||
Ratio of expenses to average net assets | |||||||||||||
Before fees waived / reimbursed by the Adviser | 1.24% | (4) | 1.20% | 1.19% | 1.08% | 1.17% | 1.43% | ||||||
After fees waived / reimbursed by the Adviser | 0.74% | (4) | 0.74% | 0.74% | 0.74% | 0.74% | 0.74% | ||||||
Ratio of net investment income to average net assets | |||||||||||||
After fees waived / reimbursed by the Adviser | 3.41% | (4) | 3.63% | 4.57% | 5.52% | 4.79% | 4.43% | ||||||
Portfolio turnover rate(2) | 15% | (3) | 40% | 41% | 61% | 35% | 105% | ||||||
(1) | Computed using average shares method. | ||||||||||||
(2) | Portfolio turnover rate is calculated for the Fund without distinguishing between classes. | ||||||||||||
(3) | Not Annualized. | ||||||||||||
(4) | Annualized. |
The accompanying notes are an integral part of these financial statements.
16
Ziegler FAMCO Hedged Equity Fund
Semi-Annual Report
Period Ending March 31, 2022
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, 2022 (the “Reporting Period”).
During the Reporting Period, the Ziegler FAMCO Hedged Equity Fund (the “Fund”) returned 0.10% while the S&P 500 Index returned 5.92%. Importantly, the Fund’s return was less volatile than the S&P 500 Index, with a standard deviation of 7.56% for the Fund and 16.42% for the Index during the six months ending March 31, 2022.
The Fund’s strategy 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. We believe the strategy has the potential to offer downside protection while still allowing for participation in equity market advances.
Market Environment
The six-month reporting period was composed of two sharply different environments, with the S&P 500 Index advancing 11.03% in the fourth quarter of 2021 on the back of the strongest Real GDP growth since the early 1980s as the economy continued its reopening and recovery from the economic shutdown resulting from the initial outbreak of COVID-19. In the first quarter of 2022, the combination of persistent supply chain challenges, the highest inflation in 40 years and the anticipation and culmination of Russia’s invasion of Ukraine turned market sentiment negative, and the S&P 500 Index declined 4.60% from December 31, 2021 through March 31, 2022.
Federal Reserve Chair Jerome Powell and the Federal Open Market Committee (FMOC) transitioned its monetary policy away from the accommodative measures put in place to support the economy during the early stages of the pandemic and began a tightening cycle that will likely continue for at least the next twelve months. In anticipation of FOMC policy changes, the US Treasury 10 year yield began the period (September 30, 2021) at 1.75% and ended it at 2.32%, which produced negative total returns for most fixed income investors.
Performance Discussion
As one would expect, the sold call options in the Fund, truncated its upside capture in the fourth quarter of 2021 but provided some downside protection in the first quarter of 2022. The Fund’s return for the fourth quarter of 2021 was 3.64% vs. 11.03% for the S&P 500 Index, while the Fund’s return in the first quarter of 2022 was -3.42% versus -4.60% for the Index.
Upon closer examination, the more volatile environment in the first quarter of 2022 produced a backdrop where the benefits of the Fund’s strategy were clear. From January 3, 2022 through March 8, 2022, the S&P 500 Index experienced a peak-to-trough decline of 12.82% before partially recovering during the last few weeks of March. During the January 3rd to March 8th period, the Fund’s return was -6.73%, or just 52% of the S&P 500’s decline. Importantly, interest rates continued their climb during this period, meaning an allocation to bonds would have done little to shield investors from the drop in the stock market.
17
The performance of the Fund during this market decline gives us confidence that the Fund will be able to deliver on its goal of providing downside protection in the event of a deeper, more significant market downturn in the future.
Looking Ahead
According to Bloomberg, S&P 500 earnings per share are expected to grow at a nominal rate of 15.5% in 2022, which equates to an above-average Forward P/E ratio of 20.2 at quarter end, suggesting the stock market may be somewhat overvalued. Net profit margins have been rising and are at record levels, despite high inflation, indicating that corporations have pricing power as rising inputs costs have been passed on to customers. Despite strong corporate earnings, real GDP growth is slowing back to a more normal rate, as fiscal and monetary stimulus is withdrawn. The financial markets and the economy were supported for the past two years by an unprecedented amount of fiscal and monetary policy stimulus, which is likely ending. In addition to above average valuations, rising interest rates and high inflation are a risk to financial markets in the coming quarters. The Fed will remain in the spotlight as they attempt to balance the inflation and recession risks.
Parts of the economy remain below their pre-COVID trend growth path, including air transportation, accommodations, outpatient medical services, and spectator events. These areas could have catch-up growth potential as the ongoing economic impacts of COVID-19 diminish. Congress’s failure to pass a new $1.7 trillion Build Back Better spending package means the corporate tax cuts of 2017 will likely remain in place, which supports corporate profit margins. As we move forward, the stock market may begin to focus on mid-term elections. Historically, the party in power loses seats in Congress. As a result, we may be left with a divided government at the end of 2022, which has historically been positive for the stock market.
The Fund’s stock portfolio is designed to closely track the return of the S&P 500. The hedging strategy is designed to reduce downside risk and cap market upside, creating “guardrails” around an equity portfolio, with a near cost-neutral hedging strategy. Given the outlook described above, we believe an allocation to the Fund creates equity market exposure with less risk. Additionally, the rising interest rate environment draws into question the traditional bond investment hedge to equity portfolios. We believe the Fund’s hedged strategy could create an attractive alternative to a 60% stocks /40% bonds asset allocation mix. The Fund’s monthly option strike price resets should help our strategy perform well if the market trends higher and then experiences an abrupt market sell-off, or in a market with modest, single-digit annualized returns.
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 years.
18
We appreciate your investment in the Ziegler FAMCO Hedged Equity Fund.
Sincerely,
Wiley Angell Sean Hughes
Senior Portfolio Manager Senior Portfolio Manager
Davis Rushing Kelly Rushing
Senior Portfolio Manager Senior Portfolio Manager
Past Performance Is Not Indicative of Future Performance
Must be preceded or accompanied by a prospectus.
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.
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.
Opinions expressed are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
The Fund risk management process includes an effort to monitor and manage risk, but does not imply low risk.
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. It is not possible to invest directly in this index.
Upside Capture measures the ratio of one investment’s return to a benchmark.
Standard Deviation is a statistical calculation which measures the variation of a series of returns to the average return. A higher standard deviation indicates a greater variation of returns than a lower standard deviation.
Earnings per share is a company’s or index’s total earnings divided by the number of outstanding shares of the company or the companies that comprise the index.
Forward P/E Ratio or Price-to-Earnings Ratio is the ratio for valuing a company or stock index that measures its current share price relative to its expected earnings per share over the next twelve-months.
19
Ziegler FAMCO Hedged Equity Fund | |
ALLOCATION OF PORTFOLIO HOLDINGS | |
(Calculated as a percentage of Total Investments) | |
March 31, 2022 (Unaudited) | |
20
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2022 (Unaudited) |
Shares | Value | ||||||
COMMON STOCKS ― 98.8% | |||||||
ACCOUNTING, TAX PREPARATION, BOOKKEEPING, AND PAYROLL SERVICES ― 0.3% | |||||||
878 | Paychex, Inc. | $ | 119,821 | ||||
AEROSPACE PRODUCT AND PARTS MANUFACTURING ― 0.9% | |||||||
956 | Boeing Co/The * | 183,074 | |||||
2,097 | General Electric Co. | 191,876 | |||||
374,950 | |||||||
AGRICULTURAL IMPLEMENT MANUFACTURING ― 0.2% | |||||||
245 | Deere & Co. | 101,788 | |||||
ALL OTHER ELECTRICAL EQUIPMENT AND COMPONENT MANUFACTURING ― 0.9% | |||||||
3,186 | Emerson Electric Co. | 312,387 | |||||
2,336 | Penn National Gaming, Inc. * | 99,093 | |||||
411,480 | |||||||
ARCHITECTURAL AND STRUCTURAL METALS MANUFACTURING ― 0.1% | |||||||
296 | Nucor Corp. | 44,000 | |||||
AUTOMOBILE AND LIGHT DUTY MOTOR VEHICLE MANUFACTURING ― 2.3% | |||||||
2,540 | Ford Motor Co. | 42,951 | |||||
876 | Tesla, Inc. * | 943,978 | |||||
986,929 | |||||||
BREAKFAST CEREAL MANUFACTURING ― 0.1% | |||||||
855 | General Mills, Inc. | 57,901 | |||||
BUILDING MATERIAL AND SUPPLIES DEALERS ― 0.4% | |||||||
878 | Snap-on, Inc. | 180,411 | |||||
COMMERCIAL BANKING ― 4.3% | |||||||
9,558 | Bank of America Corp. | 393,980 | |||||
2,585 | Bank of New York Mellon Corp/The | 128,294 | |||||
2,881 | Citigroup, Inc. | 153,845 | |||||
2,743 | JPMorgan Chase & Co. | 373,925 | |||||
9,197 | Regions Financial Corp. | 204,725 | |||||
133 | SVB Financial Group * | 74,407 | |||||
1,334 | Truist Financial Corp. | 75,638 | |||||
1,121 | US Bancorp | 59,581 | |||||
4,113 | Wells Fargo & Co. | 199,316 | |||||
2,471 | Zions Bancorp NA | 161,999 | |||||
1,825,710 | |||||||
COMPUTER AND PERIPHERAL EQUIPMENT MANUFACTURING ― 7.5% | |||||||
17,986 | Apple, Inc. | 3,140,535 | |||||
COMPUTER SYSTEMS DESIGN AND RELATED SERVICES ― 1.0% | |||||||
622 | Cerner Corp. | 58,194 | |||||
596 | Cognizant Technology Solutions Corp. | 53,443 | |||||
604 | F5, Inc. * | 126,207 | |||||
742 | Match Group, Inc. * | 80,685 | |||||
322 | Synopsys, Inc. * | 107,313 | |||||
425,842 | |||||||
CONSTRUCTION MACHINERY MANUFACTURING ― 0.5% | |||||||
926 | Caterpillar, Inc. | 206,331 | |||||
CONSUMER LENDING ― 0.2% | |||||||
2,930 | Synchrony Financial | 101,993 | |||||
COPPER, NICKEL, LEAD, AND ZINC MINING ― 0.4% | |||||||
3,608 | Freeport-McMoRan, Inc. | 179,462 | |||||
COSMETICS, BEAUTY SUPPLIES, AND PERFUME STORES ― 0.3% | |||||||
436 | Estee Lauder Cos Inc/The - Class A | 118,732 |
21
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2022 (Unaudited)(Continued) |
Shares | Value | ||||||
COURIERS AND EXPRESS DELIVERY SERVICES ― 0.4% | |||||||
677 | United Parcel Service, Inc. - Class B | $ | 145,189 | ||||
CREDIT CARD ISSUING ― 0.4% | |||||||
628 | American Express Co. | 117,436 | |||||
322 | Capital One Financial Corp. | 42,275 | |||||
159,711 | |||||||
CRUDE PETROLEUM EXTRACTION ― 0.7% | |||||||
1,074 | APA Corp. | 44,388 | |||||
1,713 | EOG Resources, Inc. | 204,241 | |||||
235 | Pioneer Natural Resources Co. | 58,757 | |||||
307,386 | |||||||
DATA PROCESSING, HOSTING, AND RELATED SERVICES ― 0.7% | |||||||
602 | Automatic Data Processing, Inc. | 136,980 | |||||
102 | FactSet Research Systems, Inc. | 44,283 | |||||
878 | Fiserv, Inc. * | 89,029 | |||||
189 | Verisk Analytics, Inc. | 40,565 | |||||
310,857 | |||||||
DEPARTMENT STORES ― 0.6% | |||||||
536 | Bath & Body Works, Inc. | 25,621 | |||||
580 | Dollar Tree, Inc. * | 92,887 | |||||
2,392 | TJX Cos Inc/The | 144,907 | |||||
263,415 | |||||||
DIAGNOSTIC IMAGING CENTERS ― 0.2% | |||||||
755 | Quest Diagnostics, Inc. | 103,329 | |||||
DIRECT INSURANCE (EXCEPT LIFE, HEALTH, AND MEDICAL) CARRIERS ― 2.1% | |||||||
1,625 | Berkshire Hathaway, Inc.- Class B * | 573,479 | |||||
996 | Chubb Ltd.(1) | 213,044 | |||||
604 | Cincinnati Financial Corp. | 82,120 | |||||
868,643 | |||||||
DIRECT LIFE, HEALTH, AND MEDICAL INSURANCE CARRIERS ― 2.9% | |||||||
2,086 | American International Group, Inc. | 130,938 | |||||
510 | Cigna Corp. | 122,201 | |||||
918 | Globe Life, Inc. | 92,351 | |||||
103 | Humana, Inc. | 44,823 | |||||
768 | Travelers Cos Inc/The | 140,337 | |||||
1,323 | UnitedHealth Group, Inc. | 674,690 | |||||
1,205,340 | |||||||
ELECTRIC POWER GENERATION, TRANSMISSION AND DISTRIBUTION ― 0.5% | |||||||
1,075 | Edison International | 75,358 | |||||
1,804 | Pinnacle West Capital Corp. | 140,892 | |||||
216,250 | |||||||
ELECTRONIC SHOPPING AND MAIL-ORDER HOUSES ― 4.2% | |||||||
518 | Amazon.com, Inc. * | 1,688,655 | |||||
244 | Etsy, Inc. * | 30,324 | |||||
1,718,979 | |||||||
ELEVATOR AND MOVING STAIRWAY MANUFACTURING ― 0.1% | |||||||
514 | Otis Worldwide Corp. | 39,552 | |||||
FAMILY CLOTHING STORES ― 0.1% | |||||||
622 | Ross Stores, Inc. | 56,266 | |||||
FINANCIAL TRANSACTIONS PROCESSING, RESERVE, AND CLEARINGHOUSE ACTIVITIES ― 2.7% | |||||||
946 | Fidelity National Information Services, Inc. | 94,997 | |||||
915 | Mastercard, Inc. | 327,003 | |||||
1,352 | PayPal Holdings, Inc.* | 156,359 | |||||
2,386 | Visa, Inc. - Class A | 529,143 | |||||
1,107,502 |
22
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2022 (Unaudited)(Continued) |
Shares | Value | ||||||
FOOTWEAR MANUFACTURING ― 0.5% | |||||||
1,605 | NIKE, Inc. - Class B | $ | �� 215,969 | ||||
GENERAL MEDICAL AND SURGICAL HOSPITALS ― 0.4% | |||||||
578 | HCA Healthcare, Inc. | 144,859 | |||||
GENERAL MERCHANDISE STORES, INCLUDING WAREHOUSE CLUBS AND SUPERCENTERS ― 1.2% | |||||||
477 | Costco Wholesale Corp. | 274,681 | |||||
1,645 | Walmart, Inc. | 244,973 | |||||
519,654 | |||||||
GOLD ORE MINING ― 0.1% | |||||||
724 | Newmont Corp. | 57,522 | |||||
HOME CENTERS ― 1.3% | |||||||
1,188 | Home Depot Inc/The | 355,605 | |||||
1,022 | Lowe's Cos, Inc. | 206,638 | |||||
562,243 | |||||||
HOME HEALTH CARE SERVICES ― 0.4% | |||||||
523 | Intuitive Surgical, Inc. * | 157,779 | |||||
HOTELS (EXCEPT CASINO HOTELS) AND MOTELS ― 0.9% | |||||||
1,353 | Hilton Worldwide Holdings, Inc. * | 205,304 | |||||
993 | Marriott International Inc/MD - Class A * | 174,520 | |||||
379,824 | |||||||
INDUSTRIAL GAS MANUFACTURING ― 0.3% | |||||||
406 | Linde PLC (1) | 129,689 | |||||
INDUSTRIAL MACHINERY MANUFACTURING ― 1.0% | |||||||
729 | Applied Materials, Inc. | 96,082 | |||||
3,281 | Carrier Global Corp. | 150,499 | |||||
329 | KLA Corp. | 120,434 | |||||
116 | Lam Research Corp. | 62,363 | |||||
429,378 | |||||||
INSURANCE AGENCIES AND BROKERAGES ― 0.6% | |||||||
441 | Aon PLC - Class A(1) | 143,603 | |||||
1,279 | Centene Corp. * | 107,679 | |||||
251,282 | |||||||
INTERNET PUBLISHING AND BROADCASTING AND WEB SEARCH PORTALS ― 5.6% | |||||||
132 | Alphabet, Inc. - Class C * | 368,675 | |||||
452 | Alphabet, Inc. - Class A * | 1,257,170 | |||||
2,544 | Meta Platforms, Inc. - Class A * | 565,684 | |||||
491 | Netflix, Inc. * | 183,924 | |||||
2,375,453 | |||||||
INVESTMENT BANKING AND SECURITIES DEALING ― 2.3% | |||||||
194 | BlackRock, Inc. | 148,249 | |||||
2,472 | Charles Schwab Corp./The | 208,414 | |||||
628 | Goldman Sachs Group Inc/The | 207,303 | |||||
2,690 | Morgan Stanley | 235,106 | |||||
1,025 | T Rowe Price Group, Inc. | 154,970 | |||||
954,042 | |||||||
JANITORIAL SERVICES ― 0.4% | |||||||
1,010 | Ecolab, Inc. | 178,326 | |||||
LESSORS OF MINIWAREHOUSES AND SELF-STORAGE UNITS ― 0.3% | |||||||
684 | Prologis, Inc. | 110,452 | |||||
LESSORS OF NONRESIDENTIAL BUILDINGS (EXCEPT MINIWAREHOUSES) ― 0.7% | |||||||
420 | American Tower Corp. | 105,512 | |||||
2,176 | Duke Realty Corp. | 126,339 | |||||
775 | Ventas, Inc. | 47,864 | |||||
279,715 | |||||||
LESSORS OF OTHER REAL ESTATE PROPERTY ― 0.8% | |||||||
1,111 | Crown Castle International Corp. | 205,090 | |||||
460 | Digital Realty Trust, Inc. | 65,228 | |||||
276 | SBA Communications Corp. | 94,972 | |||||
365,290 |
23
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2022 (Unaudited)(Continued) |
Shares | Value | ||||||
MACHINERY, EQUIPMENT, AND SUPPLIES MERCHANT WHOLESALERS ― 0.5% | |||||||
3,487 | Fastenal Co. | $ | 207,128 | ||||
MANAGEMENT CONSULTING SERVICES ― 0.4% | |||||||
561 | Accenture PLC- Class A(1) | 189,186 | |||||
MANAGEMENT OF COMPANIES AND ENTERPRISES ― 1.6% | |||||||
1,611 | Dominion Energy, Inc. | 136,887 | |||||
2,017 | Duke Energy Corp. | 225,218 | |||||
3,268 | NextEra Energy, Inc. | 276,832 | |||||
638,937 | |||||||
MEDICAL EQUIPMENT AND SUPPLIES MANUFACTURING ― 1.7% | |||||||
1,733 | Baxter International, Inc. | 134,377 | |||||
734 | Becton Dickinson and Co. | 195,245 | |||||
1,453 | Boston Scientific Corp. * | 64,353 | |||||
282 | Dexcom, Inc. * | 144,271 | |||||
734 | Edwards Lifesciences Corp. * | 86,406 | |||||
334 | Stryker Corp. | 89,295 | |||||
713,947 | |||||||
METAL VALVE MANUFACTURING ― 0.3% | |||||||
2,526 | Masco Corp. | 128,826 | |||||
MOTION PICTURE AND VIDEO PRODUCTION ― 0.9% | |||||||
1,977 | Disney Walt Co. * | 271,165 | |||||
2,849 | Fox Corp.- Class A | 112,393 | |||||
383,558 | |||||||
MOTOR VEHICLE AND MOTOR VEHICLE PARTS AND SUPPLIES MERCHANT WHOLESALERS ― 0.1% | |||||||
334 | Copart, Inc. * | 41,907 | |||||
MOTOR VEHICLE ELECTRICAL AND ELECTRONIC EQUIPMENT MANUFACTURING ― 0.7% | |||||||
3,055 | Raytheon Technologies Corp. | 302,659 | |||||
NAVIGATIONAL, MEASURING, ELECTROMEDICAL, AND CONTROL INSTRUMENTS MANUFACTURING ― 3.0% | |||||||
911 | Danaher Corp. | 267,224 | |||||
966 | Honeywell International, Inc. | 187,964 | |||||
196 | IDEXX Laboratories, Inc. * | 107,224 | |||||
658 | L3Harris Technologies, Inc. | 163,493 | |||||
2,256 | Medtronic PLC(1) | 250,303 | |||||
154 | Northrop Grumman Corp. | 68,872 | |||||
352 | Thermo Fisher Scientific, Inc. | 207,909 | |||||
1,252,989 | |||||||
OTHER CONVERTED PAPER PRODUCT MANUFACTURING ― 0.4% | |||||||
1,524 | Kimberly-Clark Corp. | 187,696 | |||||
OTHER FINANCIAL INVESTMENT ACTIVITIES ― 0.1% | |||||||
148 | S&P Global, Inc. | 60,707 | |||||
OTHER PLASTICS PRODUCT MANUFACTURING ― 0.5% | |||||||
1,373 | 3M Co. | 204,412 | |||||
OTHER TRAVEL ARRANGEMENT AND RESERVATION SERVICES ― 0.3% | |||||||
51 | Booking Holdings, Inc. * | 119,771 | |||||
PAPERBOARD MILLS ― 0.1% | |||||||
179 | Packaging Corp of America | 27,944 | |||||
PETROLEUM REFINERIES ― 2.9% | |||||||
2,271 | Chevron Corp. | 369,787 | |||||
3,250 | ConocoPhillips | 325,000 | |||||
3,310 | Exxon Mobil Corp. | 273,373 | |||||
2,338 | Marathon Petroleum Corp. | 199,899 | |||||
1,168,059 |
24
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2022 (Unaudited)(Continued) |
Shares | Value | ||||||
PHARMACEUTICAL AND MEDICINE MANUFACTURING ― 5.6% | |||||||
1,387 | Abbott Laboratories | $ | 164,165 | ||||
2,233 | AbbVie, Inc. | 361,992 | |||||
1,753 | AstraZeneca PLC(1) | 116,294 | |||||
1,619 | Bristol-Myers Squibb Co. | 118,236 | |||||
979 | Eli Lilly & Co. | 280,356 | |||||
2,589 | Gilead Sciences, Inc. | 153,916 | |||||
3,047 | Johnson & Johnson | 540,019 | |||||
2,238 | Merck & Co, Inc. | 183,628 | |||||
638 | Moderna, Inc. * | 109,902 | |||||
5,453 | Pfizer, Inc. | 282,302 | |||||
129 | Vertex Pharmaceuticals, Inc. * | 33,665 | |||||
2,344,475 | |||||||
PHARMACIES AND DRUG STORES ― 0.4% | |||||||
1,554 | CVS Health Corp. | 157,280 | |||||
PIPELINE TRANSPORTATION OF NATURAL GAS ― 0.1% | |||||||
1,674 | Williams Cos Inc/The | 55,928 | |||||
PROFESSIONAL AND COMMERCIAL EQUIPMENT AND SUPPLIES MERCHANT WHOLESALERS ― 0.3% | |||||||
1,364 | Henry Schein, Inc. * | 118,927 | |||||
RADIO AND TELEVISION BROADCASTING AND WIRELESS COMMUNICATIONS EQUIPMENT MANUFACTURING ― 0.6% | |||||||
376 | Motorola Solutions, Inc. | 91,067 | |||||
988 | QUALCOMM, Inc. | 150,986 | |||||
242,053 | |||||||
RAIL TRANSPORTATION ― 0.3% | |||||||
3,837 | CSX Corp. | 143,696 | |||||
REINSURANCE CARRIERS ― 0.2% | |||||||
336 | Everest Re Group Ltd.(1) | 101,264 | |||||
RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES ― 0.9% | |||||||
382 | IQVIA Holdings, Inc. * | 88,322 | |||||
7,426 | Nielsen Holdings PLC(1) | 202,284 | |||||
95 | Regeneron Pharmaceuticals, Inc. * | 66,350 | |||||
356,956 | |||||||
RESIDENTIAL BUILDING CONSTRUCTION ― 0.2% | |||||||
1,044 | Lennar Corp. | 84,741 | |||||
RESIN AND SYNTHETIC RUBBER MANUFACTURING ― 0.8% | |||||||
3,171 | Dow, Inc. | 202,056 | |||||
1,944 | DuPont de Nemours, Inc. | 143,040 | |||||
345,096 | |||||||
RESTAURANTS AND OTHER EATING PLACES ― 1.4% | |||||||
104 | Chipotle Mexican Grill, Inc. * | 164,531 | |||||
104 | Domino's Pizza, Inc. | 42,329 | |||||
813 | McDonald's Corp. | 201,039 | |||||
1,863 | Starbucks Corp. | 169,477 | |||||
577,376 | |||||||
SECURITIES BROKERAGE ― 0.1% | |||||||
81 | MarketAxess Holdings, Inc. | 27,556 | |||||
SEMICONDUCTOR AND OTHER ELECTRONIC COMPONENT MANUFACTURING ― 5.6% | |||||||
1,990 | Advanced Micro Devices, Inc. * | 217,587 | |||||
648 | Analog Devices, Inc. | 107,037 | |||||
449 | Broadcom, Inc. | 282,726 | |||||
5,428 | Intel Corp. | 269,012 | |||||
1,100 | Micron Technology, Inc. | 85,679 |
25
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2022 (Unaudited)(Continued) |
Shares | Value | ||||||
SEMICONDUCTOR AND OTHER ELECTRONIC COMPONENT MANUFACTURING ― 5.6% (Continued) | |||||||
184 | Monolithic Power Systems, Inc. | $ | 89,365 | ||||
3,227 | NVIDIA Corp. | 880,520 | |||||
229 | Skyworks Solutions, Inc. | 30,521 | |||||
412 | SolarEdge Technologies, Inc. * | 132,816 | |||||
1,355 | Texas Instruments, Inc. | 248,615 | |||||
2,343,878 | |||||||
SEMICONDUCTOR AND RELATED DEVICE MANUFACTURING ― 0.4% | |||||||
439 | Allegion PLC(1) | 48,193 | |||||
610 | NXP Semiconductors NV(1) | 112,899 | |||||
161,092 | |||||||
SNACK FOOD MANUFACTURING ― 0.2% | |||||||
1,664 | Mondelez International, Inc. | 104,466 | |||||
SOAP AND CLEANING COMPOUND MANUFACTURING ― 0.8% | |||||||
628 | Colgate-Palmolive Co. | 47,621 | |||||
1,934 | Procter & Gamble Co/The | 295,515 | |||||
343,136 | |||||||
SOFT DRINK AND ICE MANUFACTURING ― 1.4% | |||||||
3,186 | Coca-Cola Co/The | 197,532 | |||||
1,170 | Monster Beverage Corp. * | 93,483 | |||||
1,867 | Pepsico, Inc. | 312,498 | |||||
603,513 | |||||||
SOFTWARE PUBLISHERS ― 9.4% | |||||||
658 | Adobe, Inc. * | 299,798 | |||||
285 | Autodesk, Inc. * | 61,090 | |||||
820 | Cadence Design Systems, Inc. * | 134,857 | |||||
876 | Electronic Arts, Inc. | 110,823 | |||||
416 | Intuit, Inc. | 200,029 | |||||
8,719 | Microsoft Corp. | 2,688,155 | |||||
2,232 | NortonLifeLock, Inc. | 59,193 | |||||
884 | Salesforce.com, Inc. * | 187,691 | |||||
313 | ServiceNow, Inc. * | 174,306 | |||||
433 | Take-Two Interactive Software, Inc. * | 66,569 | |||||
3,982,511 | |||||||
SOYBEAN AND OTHER OILSEED PROCESSING ― 0.2% | |||||||
715 | Archer-Daniels-Midland Co. | 64,536 | |||||
TELEPHONE APPARATUS MANUFACTURING ― 0.4% | |||||||
3,180 | Cisco Systems, Inc. | 177,317 | |||||
TELEVISION BROADCASTING ― 0.1% | |||||||
1,161 | Paramount Global - Class B | 43,897 | |||||
TOBACCO MANUFACTURING ― 0.7% | |||||||
2,912 | Altria Group, Inc. | 152,152 | |||||
1,610 | Philip Morris International, Inc. | 151,243 | |||||
303,395 | |||||||
VENEER, PLYWOOD, AND ENGINEERED WOOD PRODUCT MANUFACTURING ― 0.2% | |||||||
2,624 | Weyerhaeuser Co. | 99,450 | |||||
WAREHOUSING AND STORAGE ― 0.4% | |||||||
2,710 | Iron Mountain, Inc. | 150,161 | |||||
WATER, SEWAGE AND OTHER SYSTEMS ― 0.3% | |||||||
811 | American Water Works Co, Inc. | 134,245 | |||||
WINERIES ― 0.4% | |||||||
707 | Constellation Brands, Inc. | 162,836 |
26
Ziegler FAMCO Hedged Equity Fund | |||||||||||
SCHEDULE OF INVESTMENTS | |||||||||||
March 31, 2022 (Unaudited)(Continued) | |||||||||||
Shares | Value | ||||||||||
WIRED AND WIRELESS TELECOMMUNICATIONS CARRIERS ― 2.1% | |||||||||||
10,745 | AT&T, Inc. | $ | 253,905 | ||||||||
157 | Charter Communications, Inc. * | 85,647 | |||||||||
5,192 | Comcast Corp. - Class A | 243,089 | |||||||||
5,354 | Verizon Communications, Inc. | 272,732 | |||||||||
855,373 | |||||||||||
TOTAL COMMON STOCKS (Cost $34,323,045) | $ | 41,602,661 | |||||||||
Contracts | Notional ($) | Value | |||||||||
PURCHASED OPTIONS* ― 1.1% | |||||||||||
Put Option ― 1.1% | |||||||||||
92 | S&P 500 Index at $4,400, Expires April 29, 2022 | (42,585,854 | ) | 443,072 | |||||||
TOTAL PURCHASED OPTIONS (Premiums paid $443,259) | $ | 443,072 | |||||||||
SHORT TERM INVESTMENT ― 1.9% | |||||||||||
781,596 | Short-Term Investments Trust - Government & Agency Portfolio - Institutional Class, 0.025% (2) | 781,596 | |||||||||
TOTAL SHORT TERM INVESTMENT (Cost $781,596) | $ | 781,596 | |||||||||
TOTAL INVESTMENTS ― 101.8% (Cost $35,547,900) | 42,827,329 | ||||||||||
Liabilities in Excess of Other Assets ― (1.8)% | (761,842 | ) | |||||||||
TOTAL NET ASSETS ― 100.0% | $ | 42,065,487 | |||||||||
Contracts | Notional ($) | Value | |||||||||
WRITTEN OPTIONS* ― (1.0)% | |||||||||||
Call Option ― (0.9)% | |||||||||||
(92 | ) | S&P 500 Index at $4,665, Expires April 29, 2022 | (42,585,854 | ) | (362,848 | ) | |||||
Total Call Option Written (Premiums received $362,648) | $ | (362,848 | ) | ||||||||
Put Option ― (0.1)% | |||||||||||
(92 | ) | S&P 500 Index at $3,900, Expires April 29, 2022 | (42,585,854 | ) | (61,180 | ) | |||||
Total Put Option Written (Premiums received $51,333) | (61,180 | ) | |||||||||
TOTAL WRITTEN OPTIONS (Premiums received $413,981) | $ | (424,028 | ) |
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. |
27
Ziegler FAMCO Hedged Equity Fund | ||||
STATEMENT OF ASSETS AND LIABILITIES | ||||
March 31, 2022 (Unaudited) | ||||
Assets: | ||||
Investments in securities at value (cost $35,547,900) | $ | 42,827,329 | ||
Receivables: | ||||
Investment securities sold | 2,571,170 | |||
Due from Investment Adviser | 1,884 | |||
Dividends and interest | 28,894 | |||
Fund shares issued | 12,345 | |||
Prepaid expenses | 17,305 | |||
Total assets | 45,458,927 | |||
Liabilities: | ||||
Written options, at value (premiums received $413,981) | 424,028 | |||
Payables: | ||||
Investment securities purchased | 2,939,740 | |||
Accrued expenses and other liabilities | 29,672 | |||
Total liabilities | 3,393,440 | |||
Net Assets | $ | 42,065,487 | ||
Components of Net Assets: | ||||
Paid-in capital | $ | 39,666,989 | ||
Distributable earnings | 2,398,498 | |||
Net Assets | $ | 42,065,487 | ||
Institutional Class: | ||||
Net Assets | $ | 42,065,487 | ||
Issued and Outstanding | 3,852,374 | |||
Net Asset Value, Redemption Price and Offering Price Per Share | $ | 10.92 | ||
The accompanying notes are an integral part of these financial statements.
28
Ziegler FAMCO Hedged Equity Fund | ||||
STATEMENT OF OPERATIONS | ||||
For the Six Months Ended March 31, 2022 (Unaudited) | ||||
Investment Income: | ||||
Dividend income (Net of foreign taxes withheld of $38) | $ | 298,714 | ||
Interest income | 110 | |||
Total investment income | 298,824 | |||
Expenses: | ||||
Advisory fees (Note 3) | 125,993 | |||
Administration and fund accounting fees (Note 3) | 45,661 | |||
Registration fees | 22,919 | |||
Service Fee | 15,505 | |||
Compliance fees (Note 3) | 11,173 | |||
Legal fees | 10,011 | |||
Transfer agent fees and expenses (Note 3) | 9,942 | |||
Audit fees | 8,441 | |||
Trustee fees (Note 3) | 7,453 | |||
Custody fees (Note 3) | 4,185 | |||
Shareholder reporting fees | 3,311 | |||
Insurance fees | 1,218 | |||
Miscellaneous expenses | 3,239 | |||
Total expenses | 269,051 | |||
Expenses waived and reimbursed by the Adviser (Note 3) | (122,059 | ) | ||
Net expenses | 146,992 | |||
Net investment income | 151,832 | |||
Realized and Unrealized Gain (Loss) | ||||
Net realized loss on: | ||||
Investments | (111,475 | ) | ||
Written Options | (722,808 | ) | ||
Net realized loss | (834,283 | ) | ||
Net unrealized gain (loss) on: | ||||
Investments | 779,110 | |||
Written Options | (5,435 | ) | ||
Net change in unrealized appreciation/depreciation | 773,675 | |||
Net realized and unrealized loss on investments and written options | (60,608 | ) | ||
Net increase in net assets resulting from operations | $ | 91,224 | ||
The accompanying notes are an integral part of these financial statements.
29
Ziegler FAMCO Hedged Equity Fund | ||||||||
STATEMENTS OF CHANGES IN NET ASSETS | ||||||||
For the Six Months Ended March 31, 2022 (Unaudited) | For the Year Ended September 30, 2021 | |||||||
Increase (Decrease) in Net Assets from: | ||||||||
Operations: | ||||||||
Net investment income | $ | 151,832 | $ | 172,774 | ||||
Net realized loss on investments and written options | (834,283 | ) | (837,712 | ) | ||||
Net change in unrealized appreciation/depreciation on investments and written options | 773,675 | 4,452,521 | ||||||
Net increase (decrease) in net assets resulting from operations | 91,224 | 3,787,583 | ||||||
Distributions to shareholders: | ||||||||
Distributable earnings | (158,957 | ) | (77,922 | ) | ||||
Return of capital | - | - | ||||||
Total distributions to shareholders | (158,957 | ) | (77,922 | ) | ||||
Capital Transactions: | ||||||||
Net proceeds from shares sold | 2,629,818 | 16,451,700 | ||||||
Reinvestment of distributions | 147,096 | 70,936 | ||||||
Cost of shares repurchased | (1,735,054 | ) | (3,230,717 | ) | ||||
Net increase (decrease) in net assets from capital transactions | 1,041,860 | 13,291,919 | ||||||
Total increase (decrease) in Net Assets | 974,127 | 17,001,580 | ||||||
Net Assets: | ||||||||
Beginning of period | 41,091,360 | 24,089,780 | ||||||
End of period | $ | 42,065,487 | $ | 41,091,360 | ||||
Capital Share Transactions: | ||||||||
Shares sold | 237,856 | 1,578,287 | ||||||
Shares reinvested | 12,892 | 6,914 | ||||||
Shares repurchased | (155,424 | ) | (307,957 | ) | ||||
Net increase (decrease) in shares outstanding | 95,324 | 1,277,244 | ||||||
30
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, 2022 (Unaudited) | September 30, 2021 | September 30, 2020 | September 30, 2019 | September 30, 2018 | Period from November 29, 2016(1) to September 30, 2017 | ||||||||||||||
Net Asset Value, Beginning of Period | $ | 10.94 | $ | 9.71 | $ | 10.16 | $ | 10.58 | $ | 10.47 | $ | 10.00 | |||||||
INCOME FROM INVESTMENT OPERATIONS: | |||||||||||||||||||
Net investment income(2) | 0.04 | 0.05 | 0.10 | 0.15 | 0.13 | 0.11 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (0.02) | 1.21 | (0.17) | 0.07 | 0.35 | 0.42 | |||||||||||||
Total Gain (Loss) from Investment Operations | 0.02 | 1.26 | (0.07) | 0.22 | 0.48 | 0.53 | |||||||||||||
LESS DISTRIBUTIONS: | |||||||||||||||||||
From net investment income | (0.04) | (0.03) | (0.10) | (0.20) | (0.13) | (0.06) | |||||||||||||
From net realized gain on investments | - | - | - | (0.11) | (0.25) | - | |||||||||||||
From return of capital | - | - | (0.28) | (0.33) | - | - | |||||||||||||
Total Distributions | (0.04) | (0.03) | (0.38) | (0.64) | (0.37) | (0.06) | |||||||||||||
Net Asset Value, End of Period | $ | 10.92 | $ | 10.94 | $ | 9.71 | $ | 10.16 | $ | 10.58 | $ | 10.47 | |||||||
Total Return | 0.10% | (3) | 13.01% | (0.54)% | 2.43% | 4.74% | 5.30% | (3) | |||||||||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||||||||
Net assets, end of period (in thousands) | $42,065 | $41,091 | $24,090 | $25,917 | $21,810 | $144,485 | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
Before fees waived / reimbursed by the Adviser | 1.28% | (4) | 1.49% | (5) | 1.73% | 1.63% | 2.02% | 2.91% | (4) | ||||||||||
After fees waived / reimbursed by the Adviser | 0.70% | (4) | 1.11% | (5) | 1.15% | 1.15% | 1.15% | 1.15% | (4) | ||||||||||
Ratio of net investment income to average net assets | |||||||||||||||||||
After fees waived / reimbursed by the Adviser | 0.72% | (4) | 0.49% | (5) | 1.13% | 1.53% | 1.30% | 1.30% | (4) | ||||||||||
Portfolio turnover rate | 32% | (3) | 82% | 90% | 96% | 74% | 81% | (3) | |||||||||||
(1) | Commencement of operations. | ||||||||||||
(2) | Computed using average shares method. | ||||||||||||
(3) | Not Annualized. | ||||||||||||
(4) | Annualized. | ||||||||||||
(5) | Effective ratio for the period. Expense Cap lowered on 9/1/2021 from 1.15% to 0.70%. (Note 3) |
The accompanying notes are an integral part of these financial statements.
31
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2022
Note 1 – Organization
The Ziegler Senior Floating Rate Fund (the “Floating Rate Fund”) and the 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.
On December 18, 2020, pursuant to an Agreement and Plan of Reorganization (the ‘‘Reorganization’’) previously approved by the USCA Fund Trust, the shareholders of the USCA Premium Buy-Write Fund (the ‘‘Predecessor Fund’’) and the Trust’s Board of Trustees (the “Trustees” or “Board”), all of the assets and liabilities of the Predecessor Fund were transferred into a corresponding series (the “Successor Fund”) of the Trust in exchange for shares of the Successor Fund. USCA served as the investment adviser to the Predecessor Fund.
The Reorganization was a tax-free event to the Funds’ shareholders and the primary investment objective of the Successor Fund is the same as that of its Predecessor Fund. The Predecessor Fund was deemed to be the accounting survivor for financial reporting purposes, and as a result, the financial statements and financial highlights reflect the operations of the Predecessor Fund for periods prior to the Reorganization date. The Predecessor Fund’s fiscal year end of September 30 was also adopted by the Successor 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 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 FAMCO Fund offers 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.
32
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2022
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.
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. The 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, 2022:
Floating Rate Fund | ||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||
Assets: | ||||||||
Bank Loans | $ | - | $ | 66,012,053 | $ | - | $ | 66,012,053 |
Common Stock | 35,124 | - | - | 35,124 | ||||
Exchange Traded Fund | 1,582,592 | - | - | 1,582,592 | ||||
Short-Term Investment | 4,603,416 | - | - | 4,603,416 | ||||
Total | $ | 6,221,132 | $ | 66,012,053 | $ | - | $ | 72,233,185 |
33
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2022
FAMCO Fund | ||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||
Assets: | ||||||||
Common Stock | $ | 41,602,661 | $ | - | $ | - | $ | 41,602,661 |
Purchased Options | 443,072 | - | - | 443,072 | ||||
Short-Term Investment | 781,596 | - | - | 781,596 | ||||
Total | $ | 42,827,329 | $ | - | - | $ | 42,827,329 | |
Liabilities: | ||||||||
Written Options | $ | (424,028) | $ | - | $ | - | $ | (424,028) |
Total | $ | (424,028) | $ | - | $ | - | $ | (424,028) |
See the Schedule of Investments for further detail of investment classifications.
(b) Derivatives Investments - 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.
The 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, 2022 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.
34
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2022
FAMCO Fund
Consolidated Statement of Assets and Liabilities Location |
Assets
Risk Exposure Category | Investments(1) | |||
Equity | $ | 443,072 | ||
Total | $ | 443,072 |
Liabilities
Risk Exposure Category | Written Options | |||
Equity | $ | (424,028 | ) | |
Total | $ | (424,028 | ) |
(1) | Includes purchased options |
The following table sets forth the Fund’s realized and unrealized gain (loss), as reflected in the Consolidated Statement of Operations, by primary risk exposure and by type of derivative contract for the period ended March 31, 2022:
Amount of Realized Loss on Derivatives
Risk Exposure Category | Investments(1) | Written Options | ||||||
Equity | $ | (1,763,118 | ) | $ | (722,808 | ) | ||
Total | $ | (1,763,118 | ) | $ | (722,808 | ) |
Change in Unrealized Gain on Derivatives
Risk Exposure Category | Investments(1) | Written Options | ||||||
Equity | $ | 45,970 | $ | (5,435 | ) | |||
Total | $ | 45,970 | $ | (5,435 | ) |
(1) | Includes purchased options |
The FAMCO Fund had outstanding purchased and written option contracts as listed on the Schedule of Investments as of March 31, 2022. 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. For the period ended March 31, 2022, the month-end average number of purchased and written option contracts for the FAMCO Fund was 92 and (184), 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.
As of and during the period ended March 31, 2022, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as interest expense and other expense for penalties in the statement of operations. During the period, the Funds did not incur any interest or tax penalties. Each Fund’s income tax returns are subject to examination by the tax authorities in the United States for a period of three years after they are filed. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
35
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2022
(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 monthly. The FAMCO Fund makes 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) 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 and 0.60% for the FAMCO Fund. The management fee for the Predecessor Fund and the FAMCO Fund, prior to September 1, 2021, was 0.78%. 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, and 0.70% 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. The Expense Cap for the FAMCO Fund was lowered from 1.15% to 0.70% effective September 1, 2021. 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.
36
At March 31, 2022, the amounts reimbursed by the Adviser and the eligible recapture periods are as follows:
Year Waived / Reimbursed | Floating Rate Fund | FAMCO Fund | Expiration | ||||||
2019 | $ | 176,379 | $ | - | September 30, 2022 | ||||
2020 | 341,145 | - | September 30, 2023 | ||||||
2021 | 328,719 | 107,066 * | September 30, 2024 | ||||||
2022 | 173,609 | 122,059 | March 31, 2025 | ||||||
$ | 1,019,852 | $ | 229,125 | ||||||
*Includes post conversion period only, from 12/21/2021 to 9/30/2021.
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, 2022, the Funds incurred the following expenses for administration & fund accounting, transfer agent, custody and compliance fees:
Floating Rate Fund | FAMCO Fund | |||||||
Administration & fund accounting | $ | 72,800 | $ | 45,661 | ||||
Transfer agent | 37,241 | 9,942 | ||||||
Custody | 9,849 | 4,185 | ||||||
Compliance | 10,966 | 11,173 |
At March 31, 2022, the Funds had payables for administration & fund accounting, transfer agent, custody and compliance fees in the following amounts:
Floating Rate Fund | FAMCO Fund | |||||||
Administration & fund accounting | $ | 24,839 | $ | 15,172 | ||||
Transfer agent | 13,309 | 3,726 | ||||||
Custody | 4,938 | 786 | ||||||
Compliance | 3,466 | 3,673 | ||||||
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, 2022, Quasar did not retain sales charges on sales of the Class A shares of the Fund and CDSCs for Class C shares totaled $0.
37
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2022
The Floating Rate Fund charges a 1.00% redemption fee on the redemption of Class A shares held for 60 days or less.
The Independent Trustees were paid $17,151 for their services and reimbursement of travel expenses during the period ended March 31, 2022. The Funds pay no compensation to the Interested Trustee or officers of the Trust.
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, 2022, were as follows:
Floating Rate Fund | ||
Purchases | $ | 10,614,779 |
Sales | $ | 9,919,203 |
FAMCO Fund | ||
Purchases | $ | 13,371,698 |
Sales | $ | 14,826,962 |
Note 5 – Federal Income Tax Information
At September 30, 2021, the components of accumulated earnings (deficit) for income tax purposes were as follows:
Floating Rate Fund | FAMCO Fund | |||
Cost of Investments………………………………………………………......... | $ | 72,487,372 | $ | 35,054,255 |
Gross Unrealized Appreciation.…………………….……………….……….... | 581,737 | 6,951,720 | ||
Gross Unrealized Depreciation………………………………….………...…... | (2,377,410) | (551,453) | ||
Net Unrealized Appreciation (Depreciation) on Investments…………............. | (1,795,673) | 6,400,267 | ||
Undistributed ordinary income………………………………...……….……… | 1,200 | 94,652 | ||
Undistributed long-term capital gains……………………………...….…….… | - | - | ||
Distributable Earnings……………………………………….………...….…… | 1,200 | 94,652 | ||
Other Accumulated Loss*…………………………………...….……….…… | (1,864,962) | (2,574,418) | ||
Total Accumulated Gain (Loss)...............……………………...……………… | $ | (3,659,435) | $ | 3,920,501 |
*Temporary differences between book and tax amounts are due to straddles, wash sales, and mark to market on §1256 contracts.
At September 30, 2021, 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 | $ | (49,500 | ) | $ | (1,815,462 | ) | $ | (1,864,962 | ) | |||
FAMCO Fund | $ | (508,197 | ) | $ | (977,497 | ) | $ | (1,485,694 | ) |
38
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2022
Floating Rate Fund
Period Ended March 31, 2022 | Year Ended September 30, 2021 | |||||||
Ordinary Income | $ | 1,157,238 | $ | 2,499,018 | ||||
FAMCO Fund
Period Ended March 31, 2022 | Year Ended September 30, 2021 | |||||||
Ordinary Income | $ | 158,957 | $ | 77,922 | ||||
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, 2022, 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. Loan activity for the period ended March 31, 2022 was as follows:
Maximum available credit | $15,000,000 |
Largest amount outstanding on an individual day | 200,000 |
Average daily loan outstanding (7 days) | 200,000 |
Interest expense | 81 |
Loan outstanding as of March 31, 2022 | - |
Average interest rate | 3.25% |
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, 2022, Capinco held 39% of the outstanding Institutional Class shares of the Floating Rate Fund, and National Financial and Charles Schwab & Co. Inc. held 63% and 32% of the outstanding shares of the FAMCO Fund, respectively, for the benefit of their shareholders.
39
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2022
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 | 04/30/2022 | $0.076 | $0.059 | $0.082 |
The Funds have determined there were no other subsequent events that would need to be disclosed in the financial statements.
Note 10 – 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.
40
Ziegler Funds
EXPENSE EXAMPLE
March 31, 2022 (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, 2021 to March, 2022 (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 | 997.60 | 4.93 |
Hypothetical 5% Return | 1,000 | 1,020.00 | 4.99 |
Class C | |||
Actual Fund Return | 1,000 | 993.70 | 8.65 |
Hypothetical 5% Return | 1,000 | 1,016.26 | 8.75 |
Institutional Class | |||
Actual Fund Return | 1,000 | 998.70 | 3.69 |
Hypothetical 5% Return | 1,000 | 1,021.24 | 3.73 |
FAMCO Fund | |||
Institutional Class | |||
Actual Fund Return | 1,000 | 1,001.00 | 3.49 |
Hypothetical 5% Return | 1,000 | 1,021.44 | 3.53 |
(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 FAMCO Fund are equal to the Fund’s annualized expense ratio of 0.70%, multiplied by the average account value over the period, multiplied by 182/365. The expense ratios for each Fund reflects an expense waiver. Assumes all dividends and distributions were reinvested. |
41
Ziegler Funds
OTHER INFORMATION (Unaudited)
Quarterly Portfolio ScheduleThe Funds file their 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 Funds 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.
42
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.
43
Investment Adviser
Ziegler Capital Management, LLC
30 S. Wacker Drive, Suite 2800
Chicago, IL 60606
Investment Sub-Adviser
Pretium Credit Management, LLC
c/o Pretium Partners, LLC
810 Seventh Avenue, Suite 2400
New York, New York 10019
Investment Sub-Adviser
USCA Asset Management, LLC
4444 Westheimer Road, Suite G500
Houston, TX 77027
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.
(b) | Not applicable. |
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
Item 6. Investments.
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 /s/ Christopher E. Kashmerick
Christopher E. Kashmerick, President
Date 6/6/2022
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 /s/ Christopher E. Kashmerick
Christopher E. Kashmerick, President
Date 6/6/2022
By /s/ Russell B. Simon
Russell B. Simon, Treasurer
Date 6/6/2022