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)
Russell B. Simon
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) 914-7395
Registrant's telephone number, including area code
Date of fiscal year end: September 30
Date of reporting period: March 31, 2023
Item 1. Reports to Stockholders.
(a) |
![](https://capedge.com/proxy/N-CSRS/0000894189-23-004177/image0.jpg)
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, 2023
www.zieglercapfunds.com
Table of Contents
Ziegler Senior Floating Rate Fund | |
Shareholder Letter | 1 |
Allocation of Portfolio Holdings | 3 |
Schedule of Investments | 4 |
Statement of Assets and Liabilities | 10 |
Statement of Operations | 11 |
Statements of Changes in Net Assets | 12 |
Financial Highlights | 13 |
Ziegler FAMCO Hedged Equity Fund | |
Shareholder Letter | 16 |
Allocation of Portfolio Holdings | 19 |
Schedule of Investments | 20 |
Statement of Assets and Liabilities | 28 |
Statement of Operations | 29 |
Statements of Changes in Net Assets | 30 |
Financial Highlights | 31 |
Notes to Financial Statements | 32 |
Expense Example | 42 |
Other Information | 43 |
Privacy Notice | 44 |
Ziegler Senior Floating Rate Fund
Semi-Annual Report
Period Ending March 31, 2023
(Unaudited)
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, 2023.
During the reporting period, the Fund’s total return was 5.41% for Institutional shares, 5.18% for Class A shares without the sales charge, 0.71% for Class A shares with the sales charge, 4.89% for Class C shares without the sales charge, and 3.89% for Class C shares with the sales charge. The Credit Suisse Leveraged Loan Index’s total return was 5.51% during the same period.
Market Environment
Financial market concerns are focused on the increasing likelihood that the U.S. may be heading toward a recession. The economy is beginning to show signs of slowing down in response to the Fed’s focus on reigning-in inflation through further rate hikes. The possibility of an overshoot by the Fed that further hampers economic growth remains a top-of-mind concern for investors.
Near the end of the reporting period, the failure of two regional banks in March has slowed both loan and Collateralized Loan Obligation (CLO) issuance. Concerns over the potential for a larger banking crisis is likely to lead to tighter credit conditions, which may further slow economic growth.
Performance Discussion
Despite the potential economic headwinds, the Ziegler Senior Floating Rate Fund produced positive absolute returns during the reporting period. Institutional Class shares slightly lagged the Credit Suisse Leveraged Loan Index (the “Index”) for the six-month period ended March 31, 2023 by only 0.10%.
The Fund’s conservative risk profile relative to the Index served shareholders well during the period, especially as concerns about the banking sector materialized in March. We continue to believe that, over the longer term, our more conservative portfolio composition is positioned to outperform through an entire credit cycle with lower volatility, particularly in light of the economic challenges currently in place.
Outlook
After a marked downturn in the first three quarters of the 2022 calendar year, equities and fixed income categories advanced during the most recent six months as investors gained greater clarity regarding the potential peak Fed Funds rate. With economic growth beginning to slow, it is our view that fundamental analysis will prove essential to navigating an increasing number of downgrades and earnings misses. We believe that secured loan’s senior position in the capital structure should allow the asset class to stand up well in this type of environment.
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 | Christina O’Hearn | Eduardo Cortes |
Portfolio Manager | Portfolio Manager | Portfolio Manager |
1
Past performance is not a guarantee of future results.
The maximum sales charge for Class A shares is 4.25%, and the contingent deferred sales charge for Class C shares is 1.00%
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, 2023 (Unaudited) |
![](https://capedge.com/proxy/N-CSRS/0000894189-23-004177/image00001.jpg)
3
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited) |
Principal | Current | Maturity | |||||||
Amount | Rate | Date | Value | ||||||
BANK LOANS (1)(2) ― 93.7% | |||||||||
AEROSPACE & DEFENSE ― 4.6% | |||||||||
$ | 750,000 | AAdvantage Loyalty IP, Ltd. (3 Month USD LIBOR + 4.750%, 0.75% Floor) | 9.851 | % | 4/20/2028 | $ | 762,709 | ||
262,872 | Amentum Government Services Parent Holdings, LLC (3 Month USD SOFR + 4.000%, 0.50% Floor) | 9.033 | 2/15/2029 | 257,614 | |||||
233,378 | Amentum Government Services Parent Holdings, LLC (6 Month USD SOFR + 4.000%, 0.50% Floor) | 8.764 | 2/15/2029 | 228,711 | |||||
255,000 | Mileage Plus Holdings, LLC (3 Month USD LIBOR + 5.250%, 1.00% Floor) | 10.409 | 6/20/2027 | 265,057 | |||||
240,528 | Peraton Corp. (1 Month USD LIBOR + 3.750%, 0.75% Floor) | 8.590 | 2/1/2028 | 238,023 | |||||
237,878 | TransDigm, Inc. (1 Month USD SOFR + 3.250%) | 7.910 | 2/22/2027 | 237,973 | |||||
416,871 | TransDigm, Inc. (1 Month USD SOFR + 3.250%) | 8.056 | 8/24/2028 | 416,246 | |||||
247,475 | United Airlines, Inc. (3 Month USD LIBOR + 3.750%, 0.75% Floor) | 8.566 | 4/21/2028 | 246,268 | |||||
2,652,601 | |||||||||
AUTO COMPONENTS ― 3.5% | |||||||||
345,208 | Clarios Global, LP (1 Month USD LIBOR + 3.250%) | 8.090 | 4/30/2026 | 344,057 | |||||
346,500 | Dexko Global, Inc. (1 Month USD LIBOR + 3.750%, 0.50% Floor) | 8.590 | 10/4/2028 | 325,493 | |||||
492,500 | Garrett LX I SARL (3 Month USD LIBOR + 3.250%, 0.50% Floor) | 8.064 | 4/30/2028 | 486,959 | |||||
470,400 | PAI HoldCo, Inc. (3 Month USD LIBOR + 3.750%, 0.75% Floor) | 8.575 | 10/28/2027 | 442,618 | |||||
396,000 | Safe Fleet Holdings, LLC (1 Month USD SOFR + 3.750%, 0.50% Floor) | 8.542 | 2/23/2029 | 388,904 | |||||
1,988,031 | |||||||||
AUTOMOBILES ― 0.3% | |||||||||
164,822 | MajorDrive Holdings IV, LLC (3 Month USD LIBOR + 4.000%, 0.50% Floor) | 8.981 | 6/1/2028 | 156,787 | |||||
BUILDING PRODUCTS ― 1.2% | |||||||||
245,625 | Foundation Building Materials, Inc. (3 Month USD LIBOR + 3.250%, 0.50% Floor) | 8.075 | 1/29/2028 | 239,308 | |||||
247,500 | Quikrete Holdings, Inc. (1 Month USD LIBOR + 3.000%) | 7.778 | 3/18/2029 | 244,982 | |||||
247,500 | Specialty Building Products Holdings, LLC (1 Month USD LIBOR + 3.250%, 0.50% Floor) | 7.959 | 10/15/2028 | 233,063 | |||||
717,353 | |||||||||
CHEMICALS ― 3.9% | |||||||||
217,339 | CPC Acquisition Corp. (3 Month USD LIBOR + 3.750%, 0.75% Floor) | 8.542 | 12/29/2027 | 167,134 | |||||
417,615 | Herens US Holdco Corp. (3 Month USD LIBOR + 4.000%, 0.75% Floor) | 9.159 | 7/3/2028 | 388,944 | |||||
250,000 | INEOS US Finance, LLC (1 Month USD SOFR + 3.500%) | 8.191 | 2/10/2030 | 249,063 | |||||
250,000 | Nouryon Finance B.V. (3 Month USD SOFR + 4.000%) | 8.990 | 3/1/2028 | 249,688 | |||||
246,875 | Olympus Water US Holding Corp. (3 Month USD LIBOR + 3.750%, 0.50% Floor) | 8.623 | 11/9/2028 | 234,532 | |||||
490,000 | Plaskolite PPC Intermediate II, LLC (3 Month USD LIBOR + 4.000%, 0.75% Floor) | 9.159 | 12/15/2025 | 437,836 | |||||
249,375 | Vantage Specialty Chemicals, Inc. (1 Month USD SOFR + 4.750%) | 9.577 | 11/13/2026 | 240,210 | |||||
340,290 | Vibrantz Technologies, Inc. (3 Month USD SOFR + 4.250%, 0.50% Floor) | 8.909 | 4/21/2029 | 300,855 | |||||
2,268,262 | |||||||||
COMMERCIAL SERVICES AND SUPPLIES ― 4.3% | |||||||||
738,750 | Allied Universal Holdco, LLC (1 Month USD LIBOR + 3.750%, 0.50% Floor) | 8.478 | 5/14/2028 | 702,672 | |||||
491,266 | DG Investment Intermediate Holdings 2, Inc. (1 Month USD LIBOR + 3.750%, 0.75% Floor) | 8.590 | 3/31/2028 | 478,201 | |||||
171,766 | Garda World Security Corp. (1 Month USD LIBOR + 4.250%) | 9.028 | 10/30/2026 | 170,372 | |||||
232,894 | Project Castle, Inc. (Prime + 4.500%, 0.50% Floor) | 9.307 | 11/1/2029 | 199,416 | |||||
15,856 | Project Castle, Inc. (3 Month USD SOFR + 5.500%, 0.50% Floor) | 10.398 | 11/1/2029 | 13,576 | |||||
495,000 | Restaurant Technologies, Inc. (3 Month USD SOFR + 4.250%, 0.50% Floor) | 9.140 | 4/1/2029 | 490,226 | |||||
481,419 | Trugreen, LP (1 Month USD LIBOR + 4.000%, 0.75% Floor) | 8.840 | 11/2/2027 | 445,765 | |||||
2,500,228 | |||||||||
CONSTRUCTION & ENGINEERING ― 0.2% | |||||||||
19,236 | McDermott International, Inc. (1 Month USD LIBOR + 3.000%) | 7.840 | 6/30/2024 | 14,186 | |||||
129,847 | McDermott International, Inc. (1 Month USD LIBOR + 4.000%) | 8.840 | 6/30/2025 | 87,592 | |||||
101,778 | |||||||||
CONSTRUCTION MATERIALS ― 0.8% | |||||||||
367,399 | Tamko Building Products, LLC (3 Month USD SOFR + 3.000%) | 7.847 | 5/31/2026 | 358,503 | |||||
111,969 | Tamko Building Products, LLC (6 Month USD SOFR + 3.000%) | 7.965 | 5/31/2026 | 109,257 | |||||
467,760 |
4
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited)(Continued) |
Principal | Current | Maturity | |||||||
Amount | Rate | Date | Value | ||||||
CONTAINERS AND PACKAGING ― 1.7% | |||||||||
$ | 346,496 | BW Holding, Inc. (3 Month USD SOFR + 4.000%, 0.50% Floor) | 8.743 | % | 12/14/2028 | $ | 318,197 | ||
248,125 | Clydesdale Acquisition Holdings, Inc. (1 Month USD SOFR + 4.175%, 0.50% Floor) | 9.002 | 4/13/2029 | 242,883 | |||||
96,007 | Graham Packaging Co., Inc (1 Month USD LIBOR + 3.000%, 0.75% Floor) | 7.831 | 8/4/2027 | 95,275 | |||||
236,751 | Kloeckner Pentaplast of America, Inc. (6 Month USD SOFR + 4.750%, 0.50% Floor) | 9.715 | 2/9/2026 | 219,094 | |||||
97,750 | Tosca Services, LLC (1 Month USD SOFR + 3.500%, 0.75% Floor) | 8.256 | 8/18/2027 | 77,223 | |||||
952,672 | |||||||||
DISTRIBUTORS ― 1.1% | |||||||||
480,000 | FleetPride, Inc. (1 Month USD LIBOR + 4.500%) | 9.072 | 2/4/2026 | 477,480 | |||||
148,500 | SRS Distribution, Inc. (3 Month USD SOFR + 3.500%, 0.50% Floor) | 8.154 | 6/4/2028 | 143,562 | |||||
621,042 | |||||||||
DIVERSIFIED CONSUMER SERVICES ― 3.5% | |||||||||
244,375 | American Residential Services, LLC (3 Month USD LIBOR + 3.500%, 0.75% Floor) | 8.292 | 10/15/2027 | 242,542 | |||||
416,857 | Hertz Corp./The (1 Month USD LIBOR, 3.250%, 0.50% Floor) | 8.090 | 6/30/2028 | 414,904 | |||||
79,961 | Hertz Corp./The (1 Month USD LIBOR, 3.250%, 0.50% Floor) | 8.090 | 6/30/2028 | 79,586 | |||||
247,481 | Mavis Tire Express Services Topco Corp. (1 Month USD SOFR + 4.000%, 0.75% Floor) | 8.803 | 5/4/2028 | 243,265 | |||||
982,456 | Spin Holdco, Inc. (3 Month USD LIBOR + 4.000%, 0.75% Floor) | 8.984 | 3/4/2028 | 828,771 | |||||
197,500 | St. George's Group, LP (1 Month USD LIBOR + 3.250%, 0.50% Floor) | 8.090 | 2/10/2029 | 194,883 | |||||
2,003,951 | |||||||||
DIVERSIFIED FINANCIAL SERVICES ― 2.4% | |||||||||
368,568 | Ankura Consulting Group, LLC (1 Month USD SOFR + 4.500%, 0.75% Floor) | 9.256 | 3/17/2028 | 351,677 | |||||
346,500 | Ascensus Holdings, Inc. (3 Month USD LIBOR + 3.500%, 0.50% Floor) | 8.306 | 8/2/2028 | 337,404 | |||||
148,111 | Hudson River Trading, LLC (1 Month USD SOFR + 3.000%) | 7.756 | 3/18/2028 | 138,854 | |||||
301,867 | Orion Advisor Solutions, Inc. (3 Month USD LIBOR + 3.750%, 0.75% Floor) | 8.909 | 9/24/2027 | 283,917 | |||||
247,902 | Russell Investments US Institutional Holdco, Inc. (1 Month USD LIBOR + 3.500%, 1.00% Floor) | 8.331 | 5/30/2025 | 243,371 | |||||
1,355,223 | |||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES ― 4.71% | |||||||||
482,500 | CommScope, Inc. (1 Month USD LIBOR + 3.250%) | 8.090 | 4/4/2026 | 465,386 | |||||
500,000 | Consolidated Communications, Inc. (1 Month USD LIBOR + 3.500%, 0.75% Floor) | 8.340 | 10/2/2027 | 399,813 | |||||
250,000 | Crown Subsea Communications Holding, Inc. (1 Month USD SOFR + 5.250%, 0.75% Floor) | 10.053 | 4/27/2027 | 247,110 | |||||
483,788 | CSC Holdings, LLC (1 Month USD SOFR + 2.500%) | 7.303 | 4/15/2027 | 428,908 | |||||
487,229 | Global Tel*Link Corp. (3 Month USD LIBOR + 4.250%) | 9.221 | 11/29/2025 | 428,184 | |||||
185,700 | Guardian US Holdco, LLC (1 Month USD SOFR + 4.000%, 0.50% Floor) | 8.803 | 1/31/2030 | 183,495 | |||||
95,994 | SCRS Acquisition Corp. (3 Month USD LIBOR + 4.500%, 1.00% Floor) | 9.453 | 11/1/2024 | 68,924 | |||||
249,370 | Zacapa SARL (3 Month USD SOFR + 4.250%, 0.50% Floor) | 9.130 | 3/22/2029 | 244,606 | |||||
250,000 | Ziggo Financing Partnership (1 Month USD LIBOR + 2.500%) | 7.278 | 4/30/2028 | 247,396 | |||||
2,713,822 | |||||||||
ELECTRIC UTILITIES ― 0.4% | |||||||||
221,007 | Brookfield WEC Holdings, Inc. (1 Month USD LIBOR + 2.750%, 0.50% Floor) | 7.590 | 8/1/2025 | 220,203 | |||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS ― 1.8% | |||||||||
346,500 | CTC Holdings, LP (6 Month USD SOFR + 5.000%, 0.50% Floor) | 10.035 | 2/18/2029 | 337,838 | |||||
246,819 | Dcert Buyer, Inc. (3 Month USD LIBOR + 4.000%) | 8.792 | 10/16/2026 | 242,231 | |||||
442,927 | Ultra Clean Holdings, Inc. (1 Month USD LIBOR + 3.750%) | 8.590 | 8/27/2025 | 443,826 | |||||
1,023,895 | |||||||||
ENERGY EQUIPMENT & SERVICES ― 0.7% | |||||||||
334,153 | EnergySolutions, LLC (3 Month USD LIBOR + 3.750%, 1.00% Floor) | 8.619 | 5/11/2025 | 323,154 | |||||
211,538 | Yak Access, LLC (3 Month USD LIBOR + 5.000%) | 10.159 | 7/11/2025 | 91,567 | |||||
414,721 |
5
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited)(Continued) |
Principal | Current | Maturity | |||||||
Amount | Rate | Date | Value | ||||||
FOOD PRODUCTS ― 2.3% | |||||||||
$ | 244,375 | Arterra Wines Canada, Inc. (3 Month USD LIBOR + 3.500%, 0.75% Floor) | 8.453 | % | 11/25/2027 | $ | 240,037 | ||
250,000 | Hunter US Bidco, Inc. (3 Month USD LIBOR + 4.250%, 0.50% Floor) | 9.165 | 8/19/2028 | 245,938 | |||||
148,916 | Naked Juice, LLC (3 Month USD SOFR + 3.250%, 0.50% Floor) | 7.916 | 1/24/2029 | 131,977 | |||||
493,866 | Pacific Bells, LLC (3 Month USD SOFR + 4.500%, 0.50% Floor) | 9.256 | 11/10/2028 | 475,758 | |||||
249,375 | Pegasus Bidco BV (3 Month USD SOFR + 4.250%, 0.50% Floor) | 9.140 | 7/12/2029 | 246,361 | |||||
1,340,071 | |||||||||
HEALTH CARE EQUIPMENT & SUPPLIES ― 2.3% | |||||||||
208,457 | LifeScan Global Corp. (3 Month USD LIBOR + 6.000%) | 11.159 | 10/1/2024 | 157,675 | |||||
483,750 | National Seating & Mobility, Inc. (1 Month USD LIBOR + 5.250%) | 9.978 | 11/14/2026 | 452,548 | |||||
468,389 | Phoenix Guarantor, Inc. (1 Month USD LIBOR + 3.250%) | 8.090 | 3/5/2026 | 457,265 | |||||
250,000 | Sotera Health Holdings, LLC (1 Month USD SOFR + 3.750%, 0.50% Floor) | 8.355 | 12/13/2026 | 246,563 | |||||
1,314,051 | |||||||||
HEALTH CARE PROVIDERS & SERVICES ― 10.1% | |||||||||
248,125 | Accelerated Health Systems, LLC (3 Month USD SOFR + 4.250%, 0.50% Floor) | 9.025 | 2/15/2029 | 183,168 | |||||
228,818 | ADMI Corp. (1 Month USD LIBOR + 2.750%) | 7.590 | 4/30/2025 | 220,618 | |||||
246,250 | ADMI Corp. (1 Month USD LIBOR + 3.750%, 0.50% Floor) | 8.590 | 12/23/2027 | 229,244 | |||||
717,450 | Bracket Intermediate Holding Corp. (3 Month USD LIBOR + 4.250%) | 9.234 | 9/5/2025 | 708,841 | |||||
162,927 | Confluent Health, LLC (1 Month USD LIBOR + 4.000%, 0.50% Floor) | 8.840 | 11/30/2028 | 133,193 | |||||
35,398 | Confluent Health, LLC (1 Month USD LIBOR + 4.000%, 0.50% Floor) (3) | 8.840 | 11/30/2028 | 28,938 | |||||
731,861 | Da Vinci Purchaser Corp. (1 Month USD LIBOR + 4.000%, 1.00% Floor) | 8.845 | 1/8/2027 | 693,442 | |||||
204,435 | Embecta Corp. (1 Month USD SOFR + 3.000%, 0.50% Floor) | 7.803 | 3/31/2029 | 201,770 | |||||
485,778 | Eyecare Partners, LLC (1 Month USD SOFR + 3.750%) | 8.501 | 2/20/2027 | 398,743 | |||||
247,500 | MJH Healthcare Holdings, LLC (1 Month USD SOFR + 3.500%, 0.50% Floor) | 8.256 | 1/28/2029 | 242,241 | |||||
364,752 | National Mentor Holdings, Inc. (1 Month USD LIBOR + 3.750%, 0.75% Floor) | 8.590 | 3/2/2028 | 280,759 | |||||
11,662 | National Mentor Holdings, Inc. (3 Month USD LIBOR + 3.750%, 0.75% Floor) | 8.736 | 3/2/2028 | 8,976 | |||||
245,625 | Pacific Dental Services, Inc. (1 Month USD LIBOR + 3.500%, 0.75% Floor) | 8.340 | 5/5/2028 | 244,628 | |||||
491,206 | Pathway Vet Alliance, LLC (3 Month USD LIBOR + 3.750%) | 8.546 | 3/31/2027 | 432,669 | |||||
300,908 | Pediatric Associates Holding Co., LLC (6 Month USD LIBOR + 3.250%, 0.50% Floor) | 8.388 | 12/29/2028 | 294,983 | |||||
45,783 | Pediatric Associates Holding Co., LLC (1 Month USD LIBOR + 3.250%, 0.50% Floor) (3) | 8.090 | 12/29/2028 | 44,881 | |||||
956,750 | Radiology Partners, Inc. (1 Month USD LIBOR + 4.250%) | 9.090 | 7/9/2025 | 775,862 | |||||
242,555 | Upstream Newco, Inc. (1 Month USD SOFR + 4.250%) | 9.053 | 11/20/2026 | 192,427 | |||||
734,772 | US Renal Care, Inc. (1 Month USD LIBOR + 5.000%) | 9.859 | 7/26/2026 | 502,400 | |||||
5,817,783 | |||||||||
HEALTH CARE TECHNOLOGY ― 2.9% | |||||||||
488,608 | Ensemble RCM, LLC (3 Month USD LIBOR + 3.750%) | 8.546 | 8/1/2026 | 488,730 | |||||
485,000 | Navicure, Inc. (1 Month USD LIBOR + 4.000%) | 8.797 | 10/23/2026 | 484,168 | |||||
490,000 | Project Ruby Ultimate Parent Corp. (1 Month USD LIBOR + 3.250%, 0.75% Floor) | 8.090 | 3/10/2028 | 472,806 | |||||
225,581 | Verscend Holding Corp. (1 Month USD LIBOR + 4.000%) | 8.840 | 8/27/2025 | 225,652 | |||||
1,671,356 | |||||||||
HOTELS RESTAURANTS & LEISURE ― 3.2% | |||||||||
480,000 | AMC Entertainment Holdings, Inc. (1 Month USD LIBOR + 3.000%) | 7.797 | 4/22/2026 | 351,300 | |||||
55,700 | Caesars Entertainment, Inc. (1 Month USD SOFR + 3.250%, 0.50% Floor) | 8.053 | 2/6/2030 | 55,514 | |||||
967,725 | Diamond Sports Group, LLC (1 Month USD SOFR + 3.250%) | 8.053 | 8/24/2026 | 55,441 | |||||
199,500 | Entain Holdings Gibraltar, Ltd. (1 Month USD SOFR + 3.500%, 0.50% Floor) | 8.292 | 10/31/2029 | 199,968 | |||||
248,750 | Star Group Holdings B.V. (1 Month USD SOFR + 3.250%, 0.50% Floor) | 7.941 | 7/4/2028 | 249,086 | |||||
394,000 | Pug, LLC (1 Month USD LIBOR + 4.250%, 0.50% Floor) | 9.081 | 2/13/2027 | 284,665 | |||||
496,250 | Scientific Games Holdings, LP (1 Month USD SOFR + 3.000%, 0.50% Floor) | 7.660 | 4/14/2029 | 493,251 | |||||
149,250 | Scientific Games Holdings, LP (3 Month USD SOFR + 3.500%, 0.50% Floor) | 8.390 | 4/4/2029 | 147,419 | |||||
1,836,644 | |||||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS ― 1.6% | |||||||||
174,852 | Array Technologies, Inc. (3 Month USD LIBOR + 3.250%, 0.50% Floor) | 8.208 | 10/14/2027 | 172,010 | |||||
839,818 | Lightstone Holdco, LLC (1 Month USD SOFR + 5.750%, 1.00% Floor) | 10.506 | 1/30/2027 | 723,922 | |||||
47,500 | Lightstone Holdco, LLC (1 Month USD SOFR + 5.750%, 1.00% Floor) | 10.506 | 1/30/2027 | 40,945 | |||||
936,877 |
6
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited)(Continued) |
Principal | Current | Maturity | |||||||
Amount | Rate | Date | Value | ||||||
INDUSTRIAL CONGLOMERATES ― 1.6% | |||||||||
$ | 951,068 | CD&R Hydra Buyer, Inc. (3 Month USD LIBOR + 4.250%, 1.00% Floor) | 9.388 | % | 12/11/2024 | $ | 942,746 | ||
INSURANCE ― 3.2% | |||||||||
201,064 | Acrisure, LLC (1 Month USD LIBOR + 3.500%) | 8.184 | 2/15/2027 | 195,115 | |||||
346,500 | AssuredPartners, Inc. (1 Month USD SOFR + 3.500%, 0.50% Floor) | 8.303 | 2/13/2027 | 343,468 | |||||
97,750 | Asurion, LLC (1 Month USD LIBOR + 3.250%) | 8.095 | 12/23/2026 | 90,943 | |||||
248,750 | Asurion, LLC (3 Month USD SOFR + 4.000%) | 8.811 | 8/19/2028 | 230,251 | |||||
244,397 | Baldwin Risk Partners, LLC (1 Month USD LIBOR + 3.500%, 0.50% Floor) | 8.340 | 10/14/2027 | 239,101 | |||||
283,936 | Broadstreet Partners, Inc. (1 Month USD LIBOR + 3.000%) | 7.852 | 1/27/2027 | 278,683 | |||||
491,358 | OneDigital Borrower, LLC (3 Month USD SOFR + 4.250%, 0.50% Floor) | 9.144 | 11/16/2027 | 474,161 | |||||
1,851,722 | |||||||||
INTERNET SOFTWARE & SERVICES ― 4.5% | |||||||||
394,990 | Arches Buyer, Inc. (1 Month USD LIBOR + 3.250%, 0.50% Floor) | 8.081 | 12/6/2027 | 373,141 | |||||
979 | Constant Contact, Inc. (1 Month USD LIBOR + 4.000%, 0.75% Floor) | 8.840 | 2/10/2028 | 927 | |||||
168,385 | Indy US Holdco, LLC (1 Month USD SOFR + 6.250%, 0.50% Floor) | 11.077 | 3/5/2028 | 146,811 | |||||
81,615 | Indy US Holdco, LLC (1 Month USD SOFR + 6.250%, 0.50% Floor) | 11.077 | 3/5/2028 | 71,158 | |||||
305,986 | MH Sub I, LLC (1 Month USD LIBOR + 3.750%, 1.00% Floor) | 8.528 | 9/15/2024 | 301,540 | |||||
188,882 | MH Sub I, LLC (3 Month USD LIBOR + 3.750%) | 8.697 | 9/15/2024 | 186,094 | |||||
409,354 | Motus Group, LLC (1 Month US LIBOR +4.000%, 0.50% Floor) | 8.840 | 12/10/2028 | 386,072 | |||||
493,750 | NAB Holdings, LLC (3 Month USD SOFR + 3.000%, 0.50% Floor) | 7.894 | 11/23/2028 | 487,371 | |||||
473,750 | Research Now Group, Inc. (3 Month USD LIBOR + 5.500%, 1.00% Floor) | 10.447 | 12/20/2024 | 363,345 | |||||
249,369 | Sovos Compliance, LLC (1 Month USD LIBOR + 4.500%, 0.50% Floor) | 9.340 | 8/12/2028 | 236,745 | |||||
61,087 | Virtusa Corp. (1 Month USD SOFR + 3.750%, 0.75% Floor) | 8.493 | 2/15/2029 | 60,515 | |||||
2,613,719 | |||||||||
MACHINERY ― 2.5% | |||||||||
343,875 | Madison IAQ, LLC (3 Month USD LIBOR + 3.250%, 0.50% Floor) | 8.268 | 6/21/2028 | 328,100 | |||||
304,022 | Patriot Container Corp. (1 Month USD LIBOR + 3.750%, 1.00% Floor) | 8.502 | 3/20/2025 | 281,220 | |||||
697,467 | Titan Acquisition, Ltd./Canada (3 Month USD LIBOR + 3.000%) | 8.163 | 3/28/2025 | 663,322 | |||||
146,659 | TK Elevator US Newco, Inc. (6 Month USD LIBOR + 3.500%, 0.50% Floor) | 8.601 | 7/31/2027 | 143,271 | |||||
1,415,913 | |||||||||
MEDIA ― 5.5% | |||||||||
463,943 | AppLovin Corp. (1 Month USD SOFR + 3.250%) | 7.993 | 8/15/2025 | 463,507 | |||||
345,625 | Ascend Learning, LLC (1 Month USD LIBOR + 3.500%, 0.50% Floor) | 8.340 | 12/10/2028 | 319,950 | |||||
487,500 | Castle US Holding Corp. (1 Month USD LIBOR + 3.750%) | 8.590 | 1/29/2027 | 322,013 | |||||
540,375 | CMI Marketing, Inc. (1 Month USD LIBOR + 4.250%, 0.50% Floor) | 9.028 | 3/23/2028 | 501,198 | |||||
250,000 | Creative Artists Agency, LLC (1 Month USD SOFR + 3.500%) | 8.276 | 11/26/2028 | 249,558 | |||||
148,500 | Fertitta Entertainment, LLC/NV (1 Month USD SOFR + 4.000%, 0.50% Floor) | 8.791 | 1/27/2029 | 146,543 | |||||
222,900 | iHeartCommunications, Inc. (1 Month USD LIBOR + 3.250%, 0.50% Floor) | 8.011 | 5/1/2026 | 198,173 | |||||
349,335 | Terrier Media Buyer, Inc. (1 Month USD LIBOR + 3.500%) | 8.340 | 12/17/2026 | 310,559 | |||||
451,836 | Univision Communications, Inc. (1 Month USD LIBOR + 3.250%, 0.75% Floor) | 8.090 | 3/24/2026 | 450,297 | |||||
195,500 | Weld North Education, LLC (1 Month USD LIBOR + 3.750%, 0.50% Floor) | 8.528 | 12/17/2027 | 195,052 | |||||
3,156,850 | |||||||||
METALS & MINING ― 0.7% | |||||||||
103,433 | GrafTech Finance, Inc. (1 Month USD LIBOR + 3.000%, 0.50% Floor) | 7.778 | 2/12/2025 | 103,175 | |||||
283,183 | MRC Global, Inc. (1 Month USD LIBOR + 3.000%) | 7.797 | 9/22/2024 | 280,529 | |||||
383,704 | |||||||||
OIL, GAS & CONSUMABLE FUELS ― 2.5% | |||||||||
473,892 | Northriver Midstream Finance, LP (3 Month USD LIBOR + 3.250%) | 8.409 | 10/1/2025 | 472,953 | |||||
987,500 | Prairie ECI Acquiror, LP (1 Month USD LIBOR + 4.750%) | 9.478 | 3/11/2026 | 967,750 | |||||
1,440,703 |
7
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited)(Continued) |
Principal | Current | Maturity | |||||||
Amount | Rate | Date | Value | ||||||
PHARMACEUTICALS ― 4.0% | |||||||||
$ | 245,000 | Alkermes, Inc. (1 Month USD LIBOR + 2.500%, 0.50% Floor) | 7.340 | % | 3/12/2026 | $ | 240,100 | ||
629,680 | Alvogen Pharma US, Inc. (3 Month USD SOFR + 7.500%, 1.00% Floor) | 12.390 | 6/30/2025 | 554,118 | |||||
955,858 | Amneal Pharmaceuticals, LLC (3 Month USD LIBOR + 3.500%) | 8.345 | 5/4/2025 | 910,904 | |||||
631,868 | Curium Bidco Sarl (3 Month USD LIBOR + 4.250%, 0.75% Floor) | 9.388 | 12/9/2027 | 614,491 | |||||
2,319,613 | |||||||||
PROFESSIONAL SERVICES ― 0.6% | |||||||||
344,556 | APX Group, Inc. (3 Month USD LIBOR + 3.250%, 0.50% Floor) | 8.340 | 7/9/2028 | 343,541 | |||||
194 | APX Group, Inc. (Prime + 2.250%, 0.50% Floor) | 8.340 | 7/9/2028 | 194 | |||||
343,735 | |||||||||
SOFTWARE ― 7.0% | |||||||||
221,200 | AthenaHealth Group, Inc. (1 Month USD SOFR + 3.500%, 0.50% Floor) | 8.243 | 2/15/2029 | 207,651 | |||||
27,174 | AthenaHealth Group, Inc. (1 Month USD SOFR + 3.500%, 0.50% Floor) (3) | 8.243 | 2/15/2029 | 25,510 | |||||
773,368 | Brave Parent Holdings, Inc. (3 Month USD LIBOR + 4.000%) | 9.159 | 4/19/2025 | 758,547 | |||||
643,060 | Idera, Inc. (1 Month USD LIBOR + 3.750%, 0.75% Floor) | 8.590 | 3/2/2028 | 615,328 | |||||
488,750 | LogMeIn, Inc. (1 Month USD LIBOR + 4.750%) | 9.590 | 8/31/2027 | 281,708 | |||||
246,875 | Magenta Buyer, LLC (1 Month USD LIBOR + 4.750%, 0.75% Floor) | 9.602 | 7/27/2028 | 204,466 | |||||
398,000 | Mitnick Corporate Purchaser, Inc. (3 Month USD SOFR + 4.750%, 0.50% Floor) | 9.447 | 5/2/2029 | 376,110 | |||||
200,000 | Open Text Corp. (1 Month USD SOFR + 3.500%, 0.50% Floor) | 8.303 | 1/31/2030 | 199,729 | |||||
211,875 | Organon & Co. (3 Month USD LIBOR + 3.000%, 0.50% Floor) | 7.986 | 6/2/2028 | 212,051 | |||||
389,025 | Project Leopard Holdings, Inc. (3 Month USD SOFR + 5.250%, 0.50% Floor) | 9.909 | 7/20/2029 | 359,909 | |||||
246,851 | Symplr Software, Inc. (1 Month USD SOFR + 4.500%, 0.75% Floor) | 9.276 | 12/22/2027 | 221,197 | |||||
235,643 | VS Buyer, LLC (1 Month USD LIBOR + 3.000%) | 7.840 | 3/2/2027 | 233,776 | |||||
361,125 | Zelis Network Solutions, LLC (1 Month USD LIBOR + 3.500%) | 8.340 | 9/30/2026 | 360,034 | |||||
4,056,016 | |||||||||
SPECIALTY RETAIL ― 1.6% | |||||||||
244,375 | Harbor Freight Tools USA, Inc. (1 Month USD LIBOR + 2.750%, 0.50% Floor) | 7.590 | 10/19/2027 | 237,401 | |||||
273,721 | Heartland Dental, LLC (3 Month USD LIBOR + 3.750%) | 8.564 | 4/30/2025 | 256,661 | |||||
489,848 | MED ParentCo, LP (1 Month USD LIBOR + 4.250%) | 9.090 | 8/31/2026 | 431,955 | |||||
926,017 | |||||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS ― 1.5% | |||||||||
278,760 | LTI Holdings, Inc. (1 Month USD LIBOR + 3.500%) | 8.340 | 9/6/2025 | 269,874 | |||||
580,303 | Sonicwall US Holdings, Inc. (3 Month USD LIBOR + 3.750%, 0.50% Floor) | 8.665 | 5/16/2025 | 571,918 | |||||
841,792 | |||||||||
WATER UTILITIES ― 0.7% | |||||||||
398,071 | AI Aqua Merger Sub, Inc. (1 Month USD SOFR + 3.750%, 0.50% Floor) | 8.556 | 7/30/2028 | 385,385 | |||||
WIRELESS TELECOMMUNICATION SERVICES ― 0.3% | |||||||||
199,491 | CCI Buyer, Inc. (3 Month USD SOFR + 4.000%, 0.75% Floor) | 8.854 | 12/17/2027 | 197,247 | |||||
TOTAL BANK LOANS (Cost $58,199,890) | $ | 53,950,273 |
8
Ziegler Senior Floating Rate Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited)(Continued) |
Shares | Value | ||||||||
COMMON STOCK ― 0.0% | |||||||||
CONSTRUCTION & ENGINEERING ― 0.0% | |||||||||
53,218 | Mcdermott International Ltd. (4) | $ | 19,957 | ||||||
TOTAL COMMON STOCK (Cost $467,382) | 19,957 | ||||||||
EXCHANGE TRADED FUND ― 2.3% | |||||||||
64,690 | Invesco Senior Loan ETF | 1,345,552 | |||||||
TOTAL EXCHANGE TRADED FUND (Cost $1,404,104) | 1,345,552 | ||||||||
SHORT TERM INVESTMENT ― 0.2% | |||||||||
85,877 | Invesco Government & Agency Portfolio Short-Term Investments Trust - Institutional Class, 4.73% (5) | 85,877 | |||||||
TOTAL SHORT TERM INVESTMENT (Cost $85,877) | 85,877 | ||||||||
TOTAL INVESTMENTS ― 96.2% (Cost $60,157,253) | 55,401,659 | ||||||||
Other Assets in Excess of Liabilities ― 3.8% | 2,163,879 | ||||||||
TOTAL NET ASSETS ― 100.0% | $ | 57,565,538 |
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) | Rates for Senior Loans will typically have interest rates that redetermine periodically by reference to a base lending rate, plus a spread. Senior Loans that reference SOFR may be subject to a credit spread adjustment particularly to legacy LIBOR bank loans that have transitioned to SOFR as the base lending rate. | ||||||
(3) | Unfunded or partially unfunded loan commitment. Principal pledged has not been drawn. | ||||||
(4) | Non income producing. | ||||||
(5) | Rate quoted is seven-day yield at period end. | ||||||
The S&P’s industry classification was developed by and/or is the exclusive property of the Standard & Poor's Financial | |||||||
Services, LLC ("S&P") and has been licensed for use by Ziegler Capital Management, LLC. |
The accompanying notes are an integral part of these financial statements.
9
Ziegler Senior Floating Rate Fund | ||||
STATEMENT OF ASSETS AND LIABILITIES | ||||
March 31, 2023 (Unaudited) | ||||
Assets: | ||||
Investments in securities at value (cost $60,157,253) | $ | 55,401,659 | ||
Cash | 1,179,854 | |||
Receivables: | ||||
Investment securities sold | 1,686,911 | |||
Fund shares sold | 50,000 | |||
Interest | 305,659 | |||
Prepaid expenses | 34,562 | |||
Total assets | 58,658,645 | |||
Liabilities: | ||||
Payables: | ||||
Investment securities purchased | 628,353 | |||
Fund shares redeemed | 2,307 | |||
Distribution payable | 37,660 | |||
Due to broker | 300,000 | |||
Due to Investment Adviser | 3,137 | |||
Distribution Fees | 14,587 | |||
Accrued expenses and other liabilities (Note 3) | 107,063 | |||
Total liabilities | 1,093,107 | |||
Net Assets | $ | 57,565,538 | ||
Components of Net Assets: | ||||
Paid-in capital | $ | 65,834,301 | ||
Accumulated loss | (8,268,763 | ) | ||
Net Assets | $ | 57,565,538 | ||
Class A: | ||||
Net Assets | $ | 2,370,398 | ||
Issued and Outstanding | 101,905 | |||
Net Asset Value and Redemption Price^ | $ | 23.26 | ||
Maximum Public Offering Price (based on maximum initial sales charge of 4.25%) | $ | 24.29 | ||
Class C: | ||||
Net Assets | $ | 2,399,224 | ||
Issued and Outstanding | 103,667 | |||
Net Asset Value, Redemption Price* and Offering Price Per Share | $ | 23.14 | ||
Institutional Class: | ||||
Net Assets | $ | 52,795,916 | ||
Issued and Outstanding | 2,273,310 | |||
Net Asset Value, Redemption Price and Offering Price Per Share | $ | 23.22 | ||
^ Initial sales charge of 4.25% is waived if Class A shares purchased in excess of $1,000,000. The 1.00% CDSC applies | ||||
when sales charge is waived and shares areredeemed within 18 months of purchase (see Note 3). | ||||
* Redemption price per share of Class C shares is NAV reduced by a 1.00% CDSC if shares are redeemed within one | ||||
year of purchase (see Note 3). |
The accompanying notes are an integral part of these financial statements.
10
Ziegler Senior Floating Rate Fund | ||||
STATEMENT OF OPERATIONS | ||||
For the Six Months Ended March 31, 2023 (Unaudited) | ||||
Investment Income: | ||||
Dividend income | $ | 51,921 | ||
Interest income | 2,585,604 | |||
Bank loan fee income | 19,041 | |||
Total investment income | 2,656,566 | |||
Expenses: | ||||
Advisory fees (Note 3) | 196,085 | |||
Administration and fund accounting fees (Note 3) | 74,775 | |||
Transfer agent fees and expenses (Note 3) | 33,602 | |||
Registration fees | 22,462 | |||
Distribution fees (Note 6) | 17,370 | |||
Legal fees | 17,293 | |||
Audit fees | 10,798 | |||
Compliance fees (Note 3) | 9,447 | |||
Custody fees (Note 3) | 8,871 | |||
Trustee fees (Note 3) | 7,984 | |||
Insurance fees | 3,618 | |||
Service fees (Note 6) | 2,993 | |||
Miscellaneous expenses | 3,746 | |||
Total expenses | 409,044 | |||
Expenses waived by the Adviser (Note 3) | (168,462 | ) | ||
Net expenses | 240,582 | |||
Net investment income | 2,415,984 | |||
Realized and Unrealized Gain (Loss) on Investments | ||||
Net realized loss on investments | (276,988 | ) | ||
Net change in unrealized appreciation (depreciation) on investments | 1,038,396 | |||
Net realized and unrealized gain on investments | 761,408 | |||
Net increase in net assets resulting from operations | $ | 3,177,392 |
The accompanying notes are an integral part of these financial statements.
11
Ziegler Senior Floating Rate Fund | ||||||||
STATEMENTS OF CHANGES IN NET ASSETS | ||||||||
For the Six Months Ended | ||||||||
March 31, 2023 | For the Year Ended | |||||||
(Unaudited) | September 30, 2022 | |||||||
Increase (Decrease) in Net Assets from: | ||||||||
Operations: | ||||||||
Net investment income | $ | 2,415,984 | $ | 2,771,117 | ||||
Net realized loss on investments | (276,988 | ) | (1,379,118 | ) | ||||
Net change in unrealized appreciation (depreciation) on investments | 1,038,396 | (3,998,320 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 3,177,392 | (2,606,321 | ) | |||||
Distributions to shareholders: | ||||||||
Net investment income | (2,408,082 | ) | (2,772,317 | ) | ||||
Return of capital | - | (8,112 | ) | |||||
Total distributions to shareholders | (2,408,082 | ) | (2,780,429 | ) | ||||
Capital Transactions: | ||||||||
Net proceeds from shares sold: | ||||||||
Class A Shares | - | 375,512 | ||||||
Class C Shares | - | 113,000 | ||||||
Institutional Class Shares | 881,462 | 4,023,767 | ||||||
Reinvestment of distributions: | ||||||||
Class A Shares | 28,466 | 39,886 | ||||||
Class C Shares | 66,966 | 70,954 | ||||||
Institutional Class Shares | 2,010,522 | 2,282,859 | ||||||
Cost of shares repurchased: | ||||||||
Class A Shares | (2,266,726 | ) | (205,408 | ) | ||||
Class C Shares | (108,183 | ) | (1,804,511 | ) | ||||
Institutional Class Shares | (6,003,469 | ) | (7,395,604 | ) | ||||
Net decrease in net assets from capital transactions | (5,390,962 | ) | (2,499,545 | ) | ||||
Total Decrease in Net Assets | (4,621,652 | ) | (7,886,295 | ) | ||||
Net Assets: | ||||||||
Beginning of period | 62,187,190 | 70,073,485 | ||||||
End of period | $ | 57,565,538 | $ | 62,187,190 | ||||
Capital Share Transactions: | ||||||||
Shares sold: | ||||||||
Class A Shares | - | 15,459 | ||||||
Class C Shares | - | 4,565 | ||||||
Institutional Class Shares | 38,031 | 163,786 | ||||||
Shares reinvested: | ||||||||
Class A Shares | 1,226 | 1,663 | ||||||
Class C Shares | 2,901 | 2,973 | ||||||
Institutional Class Shares | 86,790 | 95,372 | ||||||
Shares repurchased: | ||||||||
Class A Shares | (97,885 | ) | (8,479 | ) | ||||
Class C Shares | (4,705 | ) | (73,433 | ) | ||||
Institutional Class Shares | (259,250 | ) | (308,485 | ) | ||||
Net decrease in shares outstanding | (232,892 | ) | (106,579 | ) |
The accompanying notes are an integral part of these financial statements.
12
Ziegler Senior Floating Rate Fund | ||||||||||||
FINANCIAL HIGHLIGHTS | ||||||||||||
Class A Shares | ||||||||||||
Per Share Data for a Share Outstanding Throughout Each Period Presented. | ||||||||||||
For the Six Months | ||||||||||||
Ended | ||||||||||||
March 31, 2023 | ||||||||||||
(Unaudited) | September 30, 2022 | September 30, 2021 | September 30, 2020 | September 30, 2019 | September 30, 2018 | |||||||
Net Asset Value, Beginning of Year | $22.99 | $24.92 | $24.34 | $25.18 | $26.01 | $25.87 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(1) | 0.90 | 0.96 | 0.84 | 1.05 | 1.35 | 1.22 | ||||||
Net realized and unrealized gain (loss) on investments | 0.27 | (1.93) | 0.58 | (0.83) | (0.78) | 0.14 | ||||||
Total Gain (Loss) from Investment Operations | 1.17 | (0.97) | 1.42 | 0.22 | 0.57 | 1.36 | ||||||
LESS DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.90) | (0.96) | (0.84) | (1.05) | (1.35) | (1.14) | ||||||
From net realized gain on investments | - | - | - | (0.01) | (0.05) | (0.08) | ||||||
From return of capital | - | - | (2) | - | - | - | - | |||||
Total Distributions | (0.90) | (0.96) | (0.84) | (1.06) | (1.40) | (1.22) | ||||||
Redemption fee proceeds | - | - | - | - | - | (2) | - | |||||
Net Asset Value, End of Year | $23.26 | $22.99 | $24.92 | $24.34 | $25.18 | $26.01 | ||||||
Total Return(3) | 5.18% | (4) | (3.97)% | 5.90% | 0.97% | 2.27% | 5.37% | |||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||
Net assets, end of year (in thousands) | $2,370 | $4,565 | $4,734 | $4,746 | $5,638 | $8,563 | ||||||
Ratio of expenses to average net assets | ||||||||||||
Before fees waived / reimbursed by the Adviser | 1.54% | (5) | 1.50% | 1.45% | 1.43% | 1.31% | 1.35% | |||||
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 | 7.79% | (5) | 3.97% | 3.38% | 4.36% | 5.28% | 4.69% | |||||
Portfolio turnover rate(6) | 7% | (4) | 26% | 40% | 41% | 61% | 35% |
(1) | Computed using average shares method. | ||||||||||||
(2) | Amount represents less than $0.01 per share. | ||||||||||||
(3) | Performance reported does not reflect sales charges. | ||||||||||||
(4) | Not Annualized. | ||||||||||||
(5) | Annualized. | ||||||||||||
(6) | Portfolio turnover rate is calculated for the Fund without distinguishing between classes. |
The accompanying notes are an integral part of these financial statements.
13
Ziegler Senior Floating Rate Fund | ||||||||||||
FINANCIAL HIGHLIGHTS | ||||||||||||
Class C Shares | ||||||||||||
Per Share Data for a Share Outstanding Throughout Each Period Presented. | ||||||||||||
For the Six Months | ||||||||||||
Ended | ||||||||||||
March 31, 2023 | ||||||||||||
(Unaudited) | September 30, 2022 | September 30, 2021 | September 30, 2020 | September 30, 2019 | September 30, 2018 | |||||||
Net Asset Value, Beginning of Year | $22.85 | $24.78 | $24.20 | $25.12 | $25.96 | $25.83 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(1) | 0.81 | 0.75 | 0.65 | 0.87 | 1.16 | 1.01 | ||||||
Net realized and unrealized gain (loss) on investments | 0.29 | (1.91) | 0.58 | (0.92) | (0.78) | 0.16 | ||||||
Total Gain (Loss) from Investment Operations | 1.10 | (1.16) | 1.23 | (0.05) | 0.38 | 1.17 | ||||||
LESS DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.81) | (0.77) | (0.65) | (0.86) | (1.17) | (0.96) | ||||||
From net realized gain on investments | - | - | - | (0.01) | (0.05) | (0.08) | ||||||
From return of capital | - | (2) | - | (2) | - | - | - | - | ||||
Total Distributions | (0.81) | (0.77) | (0.65) | (0.87) | (1.22) | (1.04) | ||||||
Net Asset Value, End of Year | $23.14 | $22.85 | $24.78 | $24.20 | $25.12 | $25.96 | ||||||
Total Return(3) | 4.89% | (4) | (4.74)% | 5.12% | (0.12)% | 1.52% | 4.56% | |||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||
Net assets, end of year (in thousands) | $2,399 | $2,410 | $4,247 | $8,049 | $9,894 | $2,665 | ||||||
Ratio of expenses to average net assets | ||||||||||||
Before fees waived / reimbursed by the Adviser | 2.29% | (5) | 2.25% | 2.19% | 2.18% | 2.07% | 2.12% | |||||
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 | 7.09% | (5) | 3.11% | 2.63% | 3.60% | 4.56% | 3.88% | |||||
Portfolio turnover rate(6) | 7% | (4) | 26% | 40% | 41% | 61% | 35% |
(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 | ||||||||||||
Institutional Class Shares | ||||||||||||
Per Share Data for a Share Outstanding Throughout Each Period Presented. | ||||||||||||
For the Six Months | ||||||||||||
Ended | ||||||||||||
March 31, 2023 | ||||||||||||
(Unaudited) | September 30, 2022 | September 30, 2021 | September 30, 2020 | September 30, 2019 | September 30, 2018 | |||||||
Net Asset Value, Beginning of Year | $22.93 | $24.86 | $24.28 | $25.19 | $26.02 | $25.88 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(1) | 0.93 | 1.01 | 0.90 | 1.10 | 1.41 | 1.25 | ||||||
Net realized and unrealized gain (loss) on investments | 0.29 | (1.92) | 0.58 | (0.90) | (0.77) | 0.17 | ||||||
Total Gain (Loss) from Investment Operations | 1.22 | (0.91) | 1.48 | 0.20 | 0.64 | 1.42 | ||||||
LESS DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.93) | (1.02) | (0.90) | (1.10) | (1.42) | (1.20) | ||||||
From net realized gain on investments | - | - | - | (0.01) | (0.05) | (0.08) | ||||||
From return of capital | - | (2) | - | (2) | - | - | - | - | ||||
Total Distributions | (0.93) | (1.02) | (0.90) | (1.11) | (1.47) | (1.28) | ||||||
Net Asset Value, End of Year | $23.22 | $22.93 | $24.86 | $24.28 | $25.19 | $26.02 | ||||||
Total Return | 5.41% | (3) | (3.75)% | 6.17% | 0.93% | 2.56% | 5.62% | |||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||
Net assets, end of year (in thousands) | $52,796 | $55,212 | $61,093 | $56,001 | $65,542 | $80,262 | ||||||
Ratio of expenses to average net assets | ||||||||||||
Before fees waived / reimbursed by the Adviser | 1.30% | (4) | 1.26% | 1.20% | 1.19% | 1.08% | 1.17% | |||||
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 | 8.07% | (4) | 4.18% | 3.63% | 4.57% | 5.52% | 4.79% | |||||
Portfolio turnover rate(5) | 7% | (3) | 26% | 40% | 41% | 61% | 35% |
(1) | Computed using average shares method. | ||||||||||||
(2) | Amount represents less than $0.01 per share. | ||||||||||||
(3) | Not Annualized. | ||||||||||||
(4) | Annualized. | ||||||||||||
(5) | Portfolio turnover rate is calculated for the Fund without distinguishing between classes. |
The accompanying notes are an integral part of these financial statements.
15
Ziegler FAMCO Hedged Equity Fund
Semi-Annual Report
Period Ending March 31, 2023
(Unaudited)
Dear Shareholder:
We are pleased to present you with the Annual Report for the Ziegler FAMCO Hedged Equity Fund for the six-month period ending March 31, 2023 (the “Reporting Period”).
Market Environment
Despite elevated risk in the market, the S&P 500 managed to produce a strongly positive return during the during the reporting period, coming off the lows of last fall. Economic growth and inflation were stronger than expected as we entered 2023, causing interest rates to continue their rise as the bond market feared more Fed rate increases on the horizon. However, these expectations were reversed in mid-March as a result of the failure of two regional banks and concerns that such failures could become more widespread. Stocks initially declined in response, but on March 13 the Treasury and the Fed announced support for the banking system, and the stock market rallied through the end of the reporting period.
The Consumer Price Index, currently at 5.0% year-over-year, has been steadily declining for nine months and is expected to decline further. Lower energy prices and lower goods prices have helped bring down inflation as supply and demand imbalances have receded. The Global Supply Chain Pressure Index continued to fall during the period and is now back to normal levels. However, the labor market has remained strong and wage growth is still elevated. As a result, inflation is still above the Fed’s preferred level and the prospect of additional rate hikes increases the risk of a recession.
Over the last year, 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 pandemic and began a rapid tightening cycle that continued through the first quarter of 2023. In light of the FOMC policy changes, the US Treasury 10-year yield rose from 2.32% as of March 31, 2022 to 3.48% as of March 31, 2023, which produced negative total returns for most fixed income investors.
Performance Discussion
During the Reporting Period ending March 31, 2023, the Ziegler FAMCO Hedged Equity Fund (the “Fund”) returned 6.84% while the S&P 500 Index returned 15.63%. The Fund’s standard deviation during the period was less than half of the S&P 500 Index. The Fund’s lower volatility is a result of the collar hedging strategy, which is designed to dampen the daily volatility of the Fund and protect the Fund against large monthly declines in the stock market. The Fund 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. Though the put strategy provided downside protection during market declines, the sold calls limited the Fund’s upside participation.
Outlook
Despite widespread expectations for recession this year, market valuations are not near recessionary levels, with the forward and trailing PE ratios of the S&P 500 at 18.1 and 20.1, respectively - slightly above the long-term averages. According to Bloomberg, S&P 500 earnings are expected to grow near 10% in each of the next three calendar years, which seems optimistic under current economic conditions. As a result, market valuations and optimistic earnings forecasts remain a risk, particularly if the economy experiences an official recession. Historically, market declines during recessions tend to be worse than non-recessionary market declines, especially when the market starts from an overvalued level.
History suggests that the stress in the banking industry and less lending throughout the economy will result in slower economic growth and lower inflation on the margin, which should make the Fed’s job of curbing inflation a little easier. However, we believe core inflation is still likely to remain above the Fed’s 2% target for all of 2023. As a result, the Fed may need to maintain a strong stance against inflation, thus limiting upside in equity markets and economic growth. Any improvements in growth or financial market performance will likely be met head-on by a Federal Reserve that is determined to keep inflation under control.
16
If core inflation remains elevated, as most economists expect, we believe the Fed will be vigilant and recession risk will remain well above normal. Geopolitical threats and the upcoming debt limit are additional risks for an outlook already laden with potential pitfalls.
Given the numerous risks on the horizon, 2023 is likely to be another volatile year for financial markets. Continued volatility in stocks with minimal growth and limited upside could also create periods of market declines, favoring hedged equity strategies with long put options. The Fund’s entire stock portfolio is hedged with long puts approximately 3% below month-end market levels, which helps reduce downside risk. These puts are largely paid for by selling call options above the market. This collar 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 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.
We appreciate your investment in the Ziegler FAMCO Hedged Equity Fund.
Sincerely,
Sean Hughes
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.
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.
Investments are subject generally to market, market sector, market liquidity, issuer, and investment style risks, among other factors to varying degrees. Equity securities may rise and decline in value due to both real and perceived market and economic factors as well as general industry conditions. The Fund risk management process includes an effort to monitor and manage risk, but does not imply low risk.
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.
The Consumer Price Index is an index of the variation in prices paid by typical consumers for retail goods and other items. It is widely used to measure price inflation.
The Global Supply Chain Pressure Index was developed by the Federal Reserve Bank of New York and includes 27 monthly variables reflecting events within supply chains and transportation costs in the maritime and air cargo sectors.
17
Upside Capture and Downside Capture measure 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.
18
Ziegler FAMCO Hedged Equity Fund | ||||
ALLOCATION OF PORTFOLIO HOLDINGS | ||||
(Calculated as a percentage of Total Investments) | ||||
March 31, 2023 (Unaudited) |
![](https://capedge.com/proxy/N-CSRS/0000894189-23-004177/image00002.jpg)
19
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited) |
Shares | Value | ||||||
COMMON STOCKS ― 100.3% | |||||||
AEROSPACE PRODUCT AND PARTS MANUFACTURING ― 2.1% | |||||||
836 | Boeing Co./The * | | $ | 177,591 | |||
538 | Honeywell International, Inc. | 102,823 | |||||
271 | Lockheed Martin Corp. | 128,110 | |||||
2,501 | Raytheon Technologies Corp. | 244,923 | |||||
653,447 | |||||||
AGRICULTURAL IMPLEMENT MANUFACTURING ― 0.3% | |||||||
227 | Deere & Co. | 93,724 | |||||
AUTOMOBILE AND LIGHT DUTY MOTOR VEHICLE MANUFACTURING ― 2.0% | |||||||
7,247 | Ford Motor Co. | 91,312 | |||||
2,569 | Tesla, Inc. * | 532,965 | |||||
624,277 | |||||||
AUTOMOBILE DEALERS ― 0.1% | |||||||
479 | CarMax, Inc. * | 30,790 | |||||
BEVERAGE AND FOOD ― 0.4% | |||||||
1,096 | Brown-Forman Corp. - Class B | 70,440 | |||||
287 | Constellation Brands, Inc. | 64,830 | |||||
135,270 | |||||||
BREAKFAST CEREAL MANUFACTURING ― 0.2% | |||||||
797 | General Mills, Inc. | 68,112 | |||||
BUSINESS SUPPORT SERVICES ― 0.5% | |||||||
632 | Fidelity National Information Services, Inc. | 34,337 | |||||
218 | MSCI, Inc. | 122,012 | |||||
156,349 | |||||||
CLOTHING STORES ― 0.1% | |||||||
405 | TJX Cos., Inc./The | 31,736 | |||||
COMMERCIAL BANKING ― 3.2% | |||||||
8,897 | Bank of America Corp. | 254,455 | |||||
2,116 | Citigroup, Inc. | 99,219 | |||||
4,110 | First Republic Bank/CA | 57,499 | |||||
2,734 | JPMorgan Chase & Co. | 356,269 | |||||
183 | M&T Bank Corp. | 21,881 | |||||
2,084 | US Bancorp | 75,128 | |||||
3,822 | Wells Fargo & Co. | 142,866 | |||||
1,007,317 | |||||||
COMPUTER AND PERIPHERAL EQUIPMENT MANUFACTURING ― 7.9% | |||||||
13,736 | Apple, Inc. | 2,265,066 | |||||
1,203 | International Business Machines Com. | 157,701 | |||||
1,188 | Seagate Technology Holdings PLC (1) | 78,551 | |||||
2,501,318 | |||||||
COMPUTER SYSTEMS DESIGN AND RELATED SERVICES ― 0.7% | |||||||
104 | Paycom Software, Inc. * | 31,617 | |||||
210 | ServiceNow, Inc. * | 97,591 | |||||
205 | Synopsys, Inc. * | 79,181 | |||||
208,389 | |||||||
CONSTRUCTION MACHINERY MANUFACTURING ― 0.6% | |||||||
859 | Caterpillar, Inc. | 196,574 |
20
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited)(Continued) |
Shares | Value | ||||||
COSMETICS, BEAUTY SUPPLIES AND PERFUME STORES ― 0.2% | |||||||
748 | Bath & Body Works, Inc. | $ | 27,362 | ||||
211 | Estee Lauder Cos., Inc./The - Class A | 52,003 | |||||
79,365 | |||||||
COURIERS AND EXPRESS DELIVERY SERVICES ― 0.6% | |||||||
301 | FedEx Corp. | 68,775 | |||||
660 | United Parcel Service, Inc. - Class B | 128,034 | |||||
196,809 | |||||||
CREDIT CARD ISSUING ― 0.4% | |||||||
478 | American Express Co. | 78,846 | |||||
622 | Capital One Financial Corp. | 59,812 | |||||
138,658 | |||||||
CRUDE PETROLEUM EXTRACTION ― 0.2% | |||||||
1,354 | APA Corp. | 48,825 | |||||
DATA PROCESSING, HOSTING AND RELATED SERVICES ― 0.5% | |||||||
173 | FactSet Research Systems, Inc. | 71,811 | |||||
816 | Fiserv, Inc. * | 92,232 | |||||
164,043 | |||||||
DIAGNOSTIC IMAGING CENTERS ― 0.2% | |||||||
475 | Quest Diagnostics, Inc. | 67,203 | |||||
DIRECT INSURANCE (EXCEPT LIFE, HEALTH AND MEDICAL) CARRIERS ― 1.8% | |||||||
1,583 | Berkshire Hathaway, Inc. - Class B * | 488,783 | |||||
424 | Chubb Ltd. (1) | 82,332 | |||||
571,115 | |||||||
DIRECT LIFE, HEALTH AND MEDICAL INSURANCE CARRIERS ― 2.4% | |||||||
1,943 | American International Group, Inc. | 97,849 | |||||
1,187 | Centene Corp. * | 75,030 | |||||
95 | Humana, Inc. | 46,119 | |||||
1,143 | UnitedHealth Group, Inc. | 540,170 | |||||
759,168 | |||||||
ELECTRIC POWER GENERATION, TRANSMISSION AND DISTRIBUTION ― 1.3% | |||||||
924 | Ameren Corp. | 79,824 | |||||
1,278 | Constellation Energy Corp. | 100,323 | |||||
2,279 | Evergy, Inc. | 139,293 | |||||
149 | First Solar, Inc. * | 32,408 | |||||
859 | Pinnacle West Capital Corp. | 68,067 | |||||
419,915 | |||||||
ELECTRICAL EQUIPMENT MANUFACTURING ― 0.2% | |||||||
534 | Generac Holdings, Inc. * | 57,677 | |||||
ELECTRONIC SHOPPING AND MAIL-ORDER HOUSES ― 2.8% | |||||||
8,083 | Amazon.com, Inc. * | 834,893 | |||||
349 | Etsy, Inc. * | 38,854 | |||||
873,747 | |||||||
EMPLOYMENT SERVICES ― 0.2% | |||||||
818 | Robert Half International, Inc. | 65,906 | |||||
ENGINE, TURBINE AND POWER TRANSMISSION EQUIPMENT ― 0.5% | |||||||
1,626 | General Electric Co. | 155,446 |
21
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited)(Continued) |
Shares | Value | ||||||
FINANCIAL TRANSACTIONS PROCESSING, RESERVE AND CLEARINGHOUSE ACTIVITIES ― 2.5% | |||||||
835 | Mastercard, Inc. | $ | 303,447 | ||||
1,458 | PayPal Holdings, Inc. * | 110,721 | |||||
1,606 | Visa, Inc. - Class A | 362,088 | |||||
776,256 | |||||||
FOOTWEAR MANUFACTURING ― 0.5% | |||||||
1,230 | NIKE, Inc. - Class B | 150,847 | |||||
GENERAL MEDICAL AND SURGICAL HOSPITALS ― 0.3% | |||||||
295 | HCA Healthcare, Inc. | 77,786 | |||||
GENERAL MERCHANDISE STORES, INCLUDING WAREHOUSE CLUBS AND SUPERCENTERS ― 1.4% | |||||||
443 | Costco Wholesale Corp. | 220,113 | |||||
1,532 | Walmart, Inc. | 225,894 | |||||
446,007 | |||||||
GOLD ORE MINING ― 0.1% | |||||||
674 | Newmont Corp. | 33,039 | |||||
GROCERY AND RELATED PRODUCT MERCHANT WHOLESALERS ― 0.6% | |||||||
1,929 | Kroger Co./The | 95,235 | |||||
1,378 | Sysco Corp. | 106,423 | |||||
201,658 | |||||||
HOME CENTERS ― 1.7% | |||||||
1,204 | Home Depot, Inc./The | 355,325 | |||||
952 | Lowe's Cos., Inc. | 190,371 | |||||
545,696 | |||||||
HOTELS (EXCEPT CASINO HOTELS) AND MOTELS ― 0.5% | |||||||
1,045 | Marriott International Inc./MD - Class A | 173,512 | |||||
HOUSEHOLD APPLIANCE MANUFACTURING ― 0.3% | |||||||
1,304 | A O Smith Corp. | 90,172 | |||||
HOUSEHOLD APPLIANCES AND ELECTRICAL AND ELECTRONIC GOODS MERCHANT WHOLESALERS ― 0.6% | |||||||
2,973 | Johnson Controls International PLC (1) | 179,033 | |||||
INDUSTRIAL GAS MANUFACTURING ― 0.6% | |||||||
394 | CF Industries Holdings, Inc. | 28,561 | |||||
472 | Linde PLC (1) | 167,768 | |||||
196,329 | |||||||
INDUSTRIAL MACHINERY MANUFACTURING ― 0.6% | |||||||
797 | Applied Materials, Inc. | 97,895 | |||||
1,836 | Pentair PLC (1) | 101,476 | |||||
199,371 | |||||||
INSURANCE AGENCIES AND BROKERAGES ― 0.9% | |||||||
531 | Aon PLC - Class A (1) | 167,419 | |||||
432 | Assurant, Inc. | 51,870 | |||||
374 | Marsh & McLennan Cos., Inc. | 62,290 | |||||
281,579 | |||||||
INSURANCE CARRIERS ― 0.6% | |||||||
3,049 | Aflac, Inc. | 196,721 |
22
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited)(Continued) |
Shares | Value | ||||||
INTERNET PUBLISHING AND BROADCASTING AND WEB SEARCH PORTALS ― 5.4% | |||||||
6,683 | Alphabet, Inc. - Class A * | $ | 693,227 | ||||
4,183 | Alphabet, Inc. - Class C * | 435,032 | |||||
2,038 | Meta Platforms, Inc. - Class A * | 431,934 | |||||
408 | Netflix, Inc. * | 140,956 | |||||
1,701,149 | |||||||
INVESTMENT BANKING AND SECURITIES DEALING ― 1.7% | |||||||
1,868 | Charles Schwab Corp./The | 97,846 | |||||
495 | Goldman Sachs Group, Inc./The | 161,920 | |||||
1,773 | Morgan Stanley | 155,669 | |||||
353 | S&P Global, Inc. | 121,704 | |||||
537,139 | |||||||
LESSORS OF REAL ESTATE PROPERTY ― 2.4% | |||||||
579 | American Tower Corp. | 118,313 | |||||
824 | Camden Property Trust | 86,388 | |||||
546 | Crown Castle International Corp. | 73,077 | |||||
551 | Digital Realty Trust, Inc. | 54,169 | |||||
84 | Equinix, Inc. | 60,567 | |||||
3,886 | Healthpeak Properties, Inc. | 85,375 | |||||
429 | Prologis, Inc. | 53,526 | |||||
1,288 | Realty Income Corp. | 81,556 | |||||
256 | SBA Communications Corp. | 66,834 | |||||
1,272 | Welltower, Inc. | 91,190 | |||||
770,995 | |||||||
MACHINERY, EQUIPMENT AND SUPPLIES MERCHANT WHOLESALERS ― 0.5% | |||||||
3,073 | Fastenal Co. | 165,758 | |||||
MANAGEMENT CONSULTING SERVICES ― 0.5% | |||||||
521 | Accenture PLC - Class A (1) | 148,907 | |||||
MANAGEMENT OF COMPANIES AND ENTERPRISES ― 1.2% | |||||||
1,913 | Dominion Energy, Inc. | 106,956 | |||||
907 | Duke Energy Corp. | 87,498 | |||||
2,456 | NextEra Energy, Inc. | 189,309 | |||||
383,763 | |||||||
MATERIALS ― 0.2% | |||||||
1,304 | Mosaic Co./The | 59,828 | |||||
MEDICAL EQUIPMENT AND SUPPLIES MANUFACTURING ― 1.9% | |||||||
681 | Becton Dickinson and Co. | 168,575 | |||||
4,062 | Boston Scientific Corp. * | 203,222 | |||||
1,230 | Edwards Lifesciences Corp. * | 101,758 | |||||
396 | Stryker Corp. | 113,046 | |||||
586,601 | |||||||
METAL ORE MINING ― 0.4% | |||||||
2,885 | Freeport-McMoRan, Inc. | 118,025 | |||||
METAL VALVE MANUFACTURING ― 0.3% | |||||||
1,580 | Masco Corp. | 78,558 | |||||
MISCELLANEOUS DURABLE GOODS MERCHANT WHOLESALERS ― 0.1% | |||||||
98 | Pool Corp. | 33,559 |
23
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited)(Continued) |
Shares | Value | ||||||
MOTION PICTURE AND VIDEO PRODUCTION ― 0.9% | |||||||
2,652 | Fox Corp. - Class A | $ | 90,301 | ||||
1,870 | Walt Disney Co. * | 187,243 | |||||
277,544 | |||||||
MOTOR VEHICLE AND MOTOR VEHICLE PARTS AND SUPPLIES MERCHANT WHOLESALERS ― 0.3% | |||||||
1,403 | Copart, Inc. * | 105,520 | |||||
NAVIGATIONAL, MEASURING, ELECTROMEDICAL AND CONTROL INSTRUMENTS MANUFACTURING ― 3.8% | |||||||
593 | Agilent Technologies, Inc. | 82,036 | |||||
845 | Danaher Corp. | 212,974 | |||||
277 | IDEXX Laboratories, Inc. * | 138,522 | |||||
251 | L3Harris Technologies, Inc. | 49,256 | |||||
1,068 | Medtronic PLC (1) | 86,102 | |||||
�� 143 | Northrop Grumman Corp. | 66,026 | |||||
78 | Roper Technologies, Inc. | 34,374 | |||||
1,212 | Teradyne, Inc. | 130,302 | |||||
476 | Thermo Fisher Scientific, Inc. | 274,352 | |||||
721 | Trane Technologies PLC (1) | 132,649 | |||||
1,206,593 | |||||||
OIL AND GAS EXTRACTION ― 0.5% | |||||||
528 | Devon Energy Corp. | 26,722 | |||||
1,027 | EQT Corp. | 32,772 | |||||
1,016 | Phillips 66 | 103,002 | |||||
162,496 | |||||||
OTHER CONVERTED PAPER PRODUCT MANUFACTURING ― 0.3% | |||||||
762 | Kimberly-Clark Corp. | 102,276 | |||||
OTHER FINANCIAL INVESTMENT ACTIVITIES ― 0.1% | |||||||
44 | BlackRock, Inc. | 29,441 | |||||
OTHER INFORMATION SERVICES ― 0.3% | |||||||
1,332 | CoStar Group, Inc. * | 91,708 | |||||
OTHER PLASTICS PRODUCT MANUFACTURING ― 0.3% | |||||||
981 | 3M Co. | 103,113 | |||||
OTHER TRAVEL ARRANGEMENT AND RESERVATION SERVICES ― 0.3% | |||||||
38 | Booking Holdings, Inc. * | 100,792 | |||||
OUTPATIENT CARE CENTERS ― 0.1% | |||||||
445 | DaVita, Inc. * | 36,094 | |||||
PAPERBOARD MILLS ― 0.2% | |||||||
560 | Packaging Corp. of America | 77,745 | |||||
PETROLEUM REFINERIES ― 3.2% | |||||||
1,490 | Chevron Corp. | 243,108 | |||||
2,447 | ConocoPhillips | 242,767 | |||||
4,054 | Exxon Mobil Corp. | 444,562 | |||||
1,333 | Occidental Petroleum Corp. | 83,219 | |||||
1,013,656 |
24
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited)(Continued) |
Shares | Value | ||||||
PHARMACEUTICAL AND MEDICINE MANUFACTURING ― 6.5% | |||||||
1,289 | Abbott Laboratories | $ | 130,524 | ||||
1,268 | AbbVie, Inc. | 202,081 | |||||
1,504 | Bristol-Myers Squibb Co. | 104,242 | |||||
815 | Eli Lilly & Co. | 279,887 | |||||
1,179 | Gilead Sciences, Inc. | 97,822 | |||||
1,971 | Johnson & Johnson | 305,505 | |||||
2,080 | Merck & Co., Inc. | 221,291 | |||||
300 | Moderna, Inc. * | 46,074 | |||||
5,788 | Pfizer, Inc. | 236,150 | |||||
100 | Regeneron Pharmaceuticals, Inc. * | 82,167 | |||||
305 | Vertex Pharmaceuticals, Inc. * | 96,096 | |||||
308 | West Pharmaceutical Services, Inc. | 106,713 | |||||
887 | Zoetis, Inc. | 147,632 | |||||
2,056,184 | |||||||
PHARMACIES AND DRUG STORES ― 0.3% | |||||||
1,443 | CVS Health Corp. | 107,229 | |||||
PIPELINE TRANSPORTATION OF NATURAL GAS ― 0.1% | |||||||
1,551 | Williams Cos., Inc./The | 46,313 | |||||
PROFESSIONAL AND COMMERCIAL EQUIPMENT AND SUPPLIES MERCHANT WHOLESALERS ― 0.2% | |||||||
881 | Henry Schein, Inc. * | 71,837 | |||||
RADIO AND TELEVISION BROADCASTING AND WIRELESS COMMUNICATIONS EQUIPMENT MANUFACTURING ― 0.6% | |||||||
350 | Motorola Solutions, Inc. | 100,146 | |||||
791 | QUALCOMM, Inc. | 100,915 | |||||
201,061 | |||||||
RAIL TRANSPORTATION ― 0.2% | |||||||
361 | Norfolk Southern Corp. | 76,532 | |||||
RESIDENTIAL BUILDING CONSTRUCTION ― 0.4% | |||||||
1,223 | Lennar Corp. | 128,550 | |||||
RESTAURANTS AND OTHER EATING PLACES ― 1.3% | |||||||
756 | McDonald's Corp. | 211,385 | |||||
2,033 | Starbucks Corp. | 211,696 | |||||
423,081 | |||||||
SECURITIES AND COMMODITY EXCHANGES ― 0.6% | |||||||
501 | CME Group, Inc. | 95,952 | |||||
843 | Intercontinental Exchange, Inc. | 87,916 | |||||
183,868 |
25
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited)(Continued) |
Shares | Value | ||||||
SEMICONDUCTOR AND OTHER ELECTRONIC COMPONENT MANUFACTURING ― 6.1% | |||||||
1,574 | Advanced Micro Devices, Inc. * | $ | 154,268 | ||||
1,669 | Amphenol Corp. - Class A | 136,391 | |||||
603 | Analog Devices, Inc. | 118,924 | |||||
349 | Broadcom, Inc. | 223,896 | |||||
5,639 | Intel Corp. | 184,226 | |||||
155 | Lam Research Corp. | 82,169 | |||||
1,039 | Micron Technology, Inc. | 62,693 | |||||
2,450 | NVIDIA Corp. | 680,536 | |||||
175 | NXP Semiconductors NV (1) | 32,633 | |||||
1,216 | ON Semiconductor Corp. * | 100,101 | |||||
509 | Skyworks Solutions, Inc. | 60,052 | |||||
495 | Texas Instruments, Inc. | 92,075 | |||||
1,927,964 | |||||||
SNACK FOOD MANUFACTURING ― 0.4% | |||||||
2,002 | Mondelez International, Inc. | 139,579 | |||||
SOAP AND CLEANING COMPOUND MANUFACTURING ― 1.5% | |||||||
364 | Air Products and Chemicals, Inc. | 104,544 | |||||
1,390 | Colgate-Palmolive Co. | 104,459 | |||||
1,794 | Procter & Gamble Co./The | 266,750 | |||||
475,753 | |||||||
SOFT DRINK AND ICE MANUFACTURING ― 1.6% | |||||||
2,962 | Coca-Cola Co./The | 183,733 | |||||
1,737 | Pepsico, Inc. | 316,655 | |||||
500,388 | |||||||
SOFTWARE PUBLISHERS ― 9.4% | |||||||
1,161 | Activision Blizzard, Inc. | 99,370 | |||||
534 | Adobe, Inc. * | 205,788 | |||||
370 | Autodesk, Inc. * | 77,019 | |||||
526 | Cadence Design Systems, Inc. * | 110,507 | |||||
370 | Intuit, Inc. | 164,957 | |||||
6,761 | Microsoft Corp. | 1,949,196 | |||||
1,548 | Oracle Corp. | 143,840 | |||||
1,084 | Salesforce.com, Inc. * | 216,562 | |||||
2,967,239 | |||||||
SOYBEAN AND OTHER OILSEED PROCESSING ― 0.2% | |||||||
664 | Archer-Daniels-Midland Co. | 52,894 | |||||
STEEL PRODUCT MANUFACTURING FROM PURCHASED STEEL ― 0.3% | |||||||
757 | Steel Dynamics, Inc. | 85,586 | |||||
SUPPORT ACTIVITIES FOR CROP PRODUCTION ― 0.4% | |||||||
2,266 | Corteva, Inc. | 136,662 | |||||
SUPPORT ACTIVITIES FOR MINING ― 0.5% | |||||||
3,325 | Schlumberger NV (1) | 163,258 | |||||
SURGICAL APPLIANCE AND SUPPLIES MANUFACTURING ― 0.3% | |||||||
365 | Intuitive Surgical, Inc. * | 93,247 | |||||
TELEPHONE APPARATUS MANUFACTURING ― 0.8% | |||||||
5,094 | Cisco Systems, Inc. | 266,289 |
26
Ziegler FAMCO Hedged Equity Fund |
SCHEDULE OF INVESTMENTS |
March 31, 2023 (Unaudited)(Continued) |
Shares | Value | ||||||
TOBACCO MANUFACTURING ― 0.7% | |||||||
870 | Altria Group, Inc. | $ | 38,819 | ||||
1,733 | Philip Morris International, Inc. | 168,535 | |||||
207,354 | |||||||
TRANSPORTATION ― 0.2% | |||||||
2,401 | CSX Corp. | 71,886 | |||||
TRAVELER ACCOMMODATION ― 0.3% | |||||||
2,062 | MGM Resorts International | 91,594 | |||||
WATER, SEWAGE AND OTHER SYSTEMS ― 0.4% | |||||||
772 | American Water Works Co., Inc. | 113,090 | |||||
WIRED AND WIRELESS TELECOMMUNICATIONS CARRIERS ― 1.6% | |||||||
5,489 | AT&T, Inc. | 105,663 | |||||
4,824 | Comcast Corp. - Class A | 182,878 | |||||
420 | T-Mobile US, Inc. * | 60,833 | |||||
3,668 | Verizon Communications, Inc. | 142,649 | |||||
492,023 | |||||||
TOTAL COMMON STOCKS (Cost $27,386,972) | $ | 31,823,907 | |||||
Contracts | Notional ($) | Value | |||||
PURCHASED OPTION ― 0.7% | |||||||
Put Option ― 0.7% | |||||||
78 | S&P 500 Index at $3,960, Expires April 28, 2023 | 32,052,618 | 225,888 | ||||
TOTAL PURCHASED OPTION (Premiums paid $257,558) | 225,888 | ||||||
Shares | |||||||
SHORT TERM INVESTMENT ― 0.8% | |||||||
245,895 | Invesco Government & Agency Portfolio Short-Term Investments Trust - Institutional Class, 4.73% (2) | 245,895 | |||||
TOTAL SHORT TERM INVESTMENT (Cost $245,895) | 245,895 | ||||||
TOTAL INVESTMENTS ― 101.8% (Cost $27,890,425) | 32,295,690 | ||||||
Liabilities in Excess of Other Assets ― (1.8)% | (566,326) | ||||||
TOTAL NET ASSETS ― 100.0% | $ | 31,729,364 | |||||
Contracts | |||||||
WRITTEN OPTION ― (1.1)% | |||||||
Call Option ― (1.1)% | |||||||
(78) | S&P 500 Index at $4,175, Expires April 28, 2023 | (32,052,618) | (357,240) | ||||
TOTAL WRITTEN OPTION (Premiums received $280,642) | $ | (357,240) | |||||
* | Non Income Producing. | ||||||
(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, 2023 (Unaudited) | ||||
Assets: | ||||
Investments in securities at value (cost $27,890,425) | $ | 32,295,690 | ||
Cash | 3,121 | |||
Receivables: | ||||
Investment securities sold | 280,717 | |||
Due from Investment Adviser | 3,730 | |||
Dividends and interest | 24,707 | |||
Prepaid expenses | 16,280 | |||
Total assets | 32,624,245 | |||
Liabilities: | ||||
Written options, at value (premiums received $280,642) | 357,240 | |||
Payables: | ||||
Fund shares redeemed | 32,088 | |||
Investment securities purchased | 432,593 | |||
Accrued expenses and other liabilities (Note 3) | 72,960 | |||
Total liabilities | 894,881 | |||
Net Assets | $ | 31,729,364 | ||
Components of Net Assets: | ||||
Paid-in capital | $ | 30,124,105 | ||
Accumulated gain | 1,605,259 | |||
Net Assets | $ | 31,729,364 | ||
Institutional Class: | ||||
Net Assets | $ | 31,729,364 | ||
Issued and Outstanding | 3,068,784 | |||
Net Asset Value, Redemption Price and Offering Price Per Share | $ | 10.34 | ||
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, 2023 (Unaudited) | ||||
Investment Income: | ||||
Dividend income (Net of foreign taxes withheld of $274) | $ | 293,193 | ||
Interest income | 3,983 | |||
Total investment income | 297,176 | |||
Expenses: | ||||
Advisory fees (Note 3) | 101,137 | |||
Administration and fund accounting fees (Note 3) | 49,951 | |||
Legal fees | 16,015 | |||
Service fees (Note 6) | 15,909 | |||
Registration fees | 11,714 | |||
Compliance fees (Note 3) | 9,143 | |||
Audit fees | 8,927 | |||
Transfer agent fees and expenses (Note 3) | 8,886 | |||
Trustee fees (Note 3) | 7,984 | |||
Custody fees (Note 3) | 4,438 | |||
Insurance fees | 2,903 | |||
Shareholder reporting fees | 619 | |||
Miscellaneous expenses | 5,900 | |||
Total expenses | 243,526 | |||
Expenses waived and reimbursed by the Adviser (Note 3) | (125,532 | ) | ||
Net expenses | 117,994 | |||
Net investment income | 179,182 | |||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) on: | ||||
Investments | (2,419,528 | ) | ||
Written Options | 516,269 | |||
Net realized loss | (1,903,259 | ) | ||
Net unrealized gain (loss) on: | ||||
Investments | 4,531,616 | |||
Written Options | (170,642 | ) | ||
Net change in unrealized appreciation (depreciation) | 4,360,974 | |||
Net realized and unrealized gain on investments and written options | 2,457,715 | |||
Net increase in net assets resulting from operations | $ | 2,636,897 | ||
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, 2023 (Unaudited) | For the Year Ended September 30, 2022 | |||||||
Increase (Decrease) in Net Assets from: | ||||||||
Operations: | ||||||||
Net investment income | $ | 179,182 | $ | 301,401 | ||||
Net realized gain (loss) on investments and written options | (1,903,259 | ) | 2,372,467 | |||||
Net change in unrealized appreciation (depreciation) on investments and written options | 4,360,974 | (6,530,811 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 2,636,897 | (3,856,943 | ) | |||||
Distributions to shareholders: | ||||||||
Distributable earnings | (939,036 | ) | (158,957 | ) | ||||
Total distributions to shareholders | (939,036 | ) | (158,957 | ) | ||||
Capital Transactions: | ||||||||
Net proceeds from shares sold | 126,155 | 3,172,311 | ||||||
Reinvestment of distributions | 879,471 | 147,096 | ||||||
Cost of shares repurchased | (5,171,987 | ) | (6,197,003 | ) | ||||
Net decrease in net assets from capital transactions | (4,166,361 | ) | (2,877,596 | ) | ||||
Total decrease in Net Assets | (2,468,500 | ) | (6,893,496 | ) | ||||
Net Assets: | ||||||||
Beginning of period | 34,197,864 | 41,091,360 | ||||||
End of period | $ | 31,729,364 | $ | 34,197,864 | ||||
Capital Share Transactions: | ||||||||
Shares sold | 12,297 | 289,662 | ||||||
Shares reinvested | 88,212 | 12,892 | ||||||
Shares repurchased | (509,736 | ) | (581,593 | ) | ||||
Net decrease in shares outstanding | (409,227 | ) | (279,039 | ) | ||||
The accompanying notes are an integral part of these financial statements.
30
Ziegler FAMCO Hedged Equity Fund | |||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||
Institutional Class | |||||||||||
Per Share Data for a Share Outstanding for Each Year End Presented. |
For the Six Months | ||||||||||||||||||
Ended | ||||||||||||||||||
March 31, 2023 | ||||||||||||||||||
(Unaudited) | September 30, 2022 | September 30, 2021 | September 30, 2020 | September 30, 2019 | September 30, 2018 | |||||||||||||
Net Asset Value, Beginning of Year | $ | 9.83 | $ | 10.94 | $ | 9.71 | $ | �� 10.16 | $ | 10.58 | | $ | 10.47 | |||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||
Net investment income(1) | 0.05 | 0.08 | 0.05 | 0.10 | 0.15 | 0.13 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 0.74 | (1.15) | 1.21 | (0.17) | 0.07 | 0.35 | ||||||||||||
Total Gain (Loss) from Investment Operations | 0.79 | (1.07) | 1.26 | (0.07) | 0.22 | 0.48 | ||||||||||||
LESS DISTRIBUTIONS: | ||||||||||||||||||
From net investment income | (0.07) | (0.04) | (0.03) | (0.10) | (0.20) | (0.13) | ||||||||||||
From net realized gain on investments | (0.21) | - | - | - | (0.11) | (0.24) | ||||||||||||
From return of capital | - | - | - | (0.28) | (0.33) | - | ||||||||||||
Total Distributions | (0.28) | (0.04) | (0.03) | (0.38) | (0.64) | (0.37) | ||||||||||||
Net Asset Value, End of Year | $ | 10.34 | $ | 9.83 | $ | 10.94 | $ | 9.71 | $ | 10.16 | | $ | 10.58 | |||||
Total Return | 6.84% | (2) | (9.81)% | 13.01% | (0.54)% | 2.43% | 4.74% | |||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||
Net assets, end of period (in thousands) | $31,729 | $34,198 | $41,091 | $24,090 | $25,917 | $21,810 | ||||||||||||
Ratio of expenses to average net assets | ||||||||||||||||||
Before fees waived / reimbursed by the Adviser | 1.44% | (3) | 1.33% | 1.49% | 1.73% | 1.63% | 2.02% | |||||||||||
After fees waived / reimbursed by the Adviser | 0.70% | (3) | 0.70% | 1.11% | (4) | 1.15% | 1.15% | 1.15% | ||||||||||
Ratio of net investment income to average net assets | ||||||||||||||||||
After fees waived / reimbursed by the Adviser | 1.06% | (3) | 0.75% | 0.49% | (4) | 1.13% | 1.53% | 1.30% | ||||||||||
Portfolio turnover rate | 25% | (2) | 77% | 82% | 90% | 96% | 74% | |||||||||||
(1) | Computed using average shares method. | ||||||||||||
(2) | Not Annualized. | ||||||||||||
(3) | Annualized. | ||||||||||||
(4) | 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
March 31, 2023 (Unaudited)
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, 2023 (Unaudited)
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.
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.
When reliable market quotations are not readily available or a pricing service does not provide a valuation (or provides a valuation that in the judgment of the Adviser does not represent the security’s fair value) or when, in the judgment of the Adviser, events have rendered the market value unreliable, a security is fair valued in good faith by the Adviser under procedures approved by the Board.
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, 2023:
Floating Rate Fund | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Bank Loans | $ | - | $ | 53,950,273 | $ | - | $ | 53,950,273 | ||||||||
Common Stock | - | 19,957 | - | 19,957 | ||||||||||||
Exchange Traded Fund | 1,345,552 | - | - | 1,345,552 | ||||||||||||
Short-Term Investment | 85,877 | - | - | 85,877 | ||||||||||||
Total | $ | 1,431,429 | $ | 53,970,230 | $ | - | $ | 55,401,659 |
33
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2023 (Unaudited)
FAMCO Fund | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Common Stocks | $ | 31,823,907 | $ | - | $ | - | $ | 31,823,907 | ||||||||
Purchased Option | 225,888 | - | - | 225,888 | ||||||||||||
Short-Term Investment | 245,895 | - | - | 245,895 | ||||||||||||
Total | $ | 32,295,690 | $ | - | - | $ | 32,295,690 | |||||||||
Liabilities: | ||||||||||||||||
Written Options | $ | (357,240 | ) | $ | - | $ | - | $ | (357,240 | ) | ||||||
Total | $ | (357,240 | ) | $ | - | $ | - | $ | (357,240 | ) | ||||||
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 six months ended March 31, 2023 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, 2023 (Unaudited)
The following table sets forth the fair value of the Fund’s derivative contracts by primary risk exposure as of March 31, 2023:
FAMCO Fund
Statement of Assets and Liabilities Location | ||||
Assets | ||||
Risk Exposure Category | Investments(1) | |||
Equity | $ | 225,888 | ||
Total | $ | 225,888 | ||
Liabilities | ||||
Risk Exposure Category | Written Options | |||
Equity | $ | (357,240 | ) | |
Total | $ | (357,240 | ) |
(1) | Includes purchased options |
The following table sets forth the Fund’s realized and unrealized gain (loss), as reflected in the Statement of Operations, by primary risk exposure and by type of derivative contract for the six months ended March 31, 2023:
Amount of Realized Gain (Loss) on Derivatives | ||||||||
Risk Exposure Category | Investments(1) | Written Options | ||||||
Equity | $ | (2,659,361 | ) | $ | 516,269 | |||
Total | $ | (2,659,361 | ) | $ | 516,269 | |||
Change in Unrealized Gain (Loss) on Derivatives | ||||||||
Risk Exposure Category | Investments(1) | Written Options | ||||||
Equity | $ | (125,715 | ) | $ | (170,642 | ) | ||
Total | $ | (125,715 | ) | $ | (170,642 | ) |
(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, 2023. 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 six months ended March 31, 2023, the month-end average number of purchased and written option contracts for the FAMCO Fund was 84 and (84), 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.
35
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2023 (Unaudited)
As of and during the six months ended March 31, 2023, 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.
(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
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2023 (Unaudited)
At March 31, 2023, the amounts reimbursed by the Adviser and the eligible recapture periods are as follows:
Year Waived / Reimbursed | Floating Rate Fund | FAMCO Fund | Expiration | ||||||
2020 | $ | 175,333 | $ | - | September 30, 2023 | ||||
2021 | 328,719 | 107,066 | * | September 30, 2024 | |||||
2022 | 351,432 | 254,801 | September 30, 2025 | ||||||
2023 | 168,462 | 125,532 | March 31, 2026 | ||||||
$ | 1,023,946 | $ | 487,399 | ||||||
*Includes post conversion period only, from 12/21/2020 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 six months ended March 31, 2023, the Funds incurred the following expenses for administration & fund accounting, transfer agent, custody and compliance fees:
Floating Rate Fund | FAMCO Fund | |||||||
Administration & fund accounting | $ | 74,775 | $ | 49,951 | ||||
Transfer agent | 33,602 | 8,886 | ||||||
Custody | 8,871 | 4,438 | ||||||
Compliance | 9,447 | 9,143 |
At March 31, 2023, 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 | $ | 53,672 | $ | 36,927 | ||||
Transfer agent | 22,136 | 6,007 | ||||||
Custody | 4,308 | 4,750 | ||||||
Compliance | 7,572 | 7,268 |
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 six months ended March 31, 2023, Quasar did not retain sales charges on sales of the Class A shares of the Fund. In addition, no CDSCs fees were paid to Quasar for Class C shares of the Fund for the six months ended March 31, 2023.
The Floating Rate Fund charges a 1.00% redemption fee on the redemption of Class A shares held for 60 days or less.
37
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2023 (Unaudited)
The Independent Trustees were paid $15,968 for their services and reimbursement of travel expenses during the six months ended March 31, 2023. 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 six months ended March 31, 2023, were as follows:
Floating Rate Fund | ||||
Purchases | $ | 4,143,188 | ||
Sales | $ | 10,531,751 | ||
FAMCO Fund | ||||
Purchases | $ | 8,360,677 | ||
Sales | $ | 13,263,352 |
Note 5 – Federal Income Tax Information
At September 30, 2022, the components of accumulated earnings (deficit) for income tax purposes were as follows:
Floating Rate Fund | FAMCO Fund | |||||||
Cost of Investments………………………………………………………......... | $ | 68,444,567 | $ | 35,112,439 | ||||
Gross Unrealized Appreciation.…………………….……………….……….... | 37,187 | 3,000,297 | ||||||
Gross Unrealized Depreciation………………………………….………...…... | (5,831,996 | ) | (3,352,583 | ) | ||||
Net Unrealized Appreciation (Depreciation) on Investments…………............. | (5,794,809 | ) | (352,286 | ) | ||||
Undistributed ordinary income………………………………...……….……… | - | 239,893 | ||||||
Undistributed long-term capital gains……………………………...….…….… | - | 699,128 | ||||||
Distributable Earnings……………………………………….………...….…… | - | 939,021 | ||||||
Other Accumulated Loss*…………………………………...….……….…… | (3,243,264 | ) | (679,337 | ) | ||||
Total Accumulated Loss…….................……………………...……………… | $ | (9,038,073 | ) | $ | (92,602 | ) |
*Temporary differences between book and tax amounts are due to straddles, wash sales, and mark to market on §1256 contracts.
Additionally, U.S. GAAP require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended September 30, 2022, the following table shows the reclassifications made:
Accumulated Earnings (Loss) | Paid-in Capital | |||||||
FAMCO Fund | $ | 2,797 | $ | (2,797 | ) |
38
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2023 (Unaudited)
At September 30, 2022, 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 | $ (802,028) | $ (2,441,236) | $ (3,243,264) | |
FAMCO Fund | - | - | - |
The tax character of distributions paid during the six months ended March 31, 2023 and the fiscal year ended September 30, 2022 were as follows:
Floating Rate Fund
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | |||||||
Ordinary Income | $ | 2,408,082 | $ | 2,772,317 | ||||
Return of Capital | - | 8,112 | ||||||
Total Distributions Paid | $ | 2,408,082 | $ | 2,780,429 |
FAMCO Fund
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | |||||||
Ordinary Income | $ | 239,893 | $ | 158,957 | ||||
Long-term Capital Gains | 699,143 | - | ||||||
Total Distributions Paid | $ | 939,036 | $ | 158,957 |
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 six months ended March 31, 2023, distribution fees incurred by Class A and Class C shares were $5,368 and $12,002, respectively.
The Board has authorized the Funds to pay service fees, at the annual rate of up to 0.15% of applicable average net assets or $20 per account, to intermediaries such as banks, broker dealers, financial advisers or other financial institutions for sub-administration, sub-transfer agency, recordkeeping (collectively, “sub-accounting services”) and other shareholder services associated with shareholders whose shares are held of record in omnibus, networked, or other group accounts or accounts traded through registered securities clearing agents. For the six months ended March 31, 2023, service fees incurred by the Institutional Class shares of the Floating Rate Fund and FAMCO Fund were $2,993 and $15,909, respectively.
39
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2023 (Unaudited)
Note 7 – Line of Credit
The Floating Rate Fund has access to a $10 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 six months ended March 31, 2023 was as follows:
Maximum available credit | $10,000,000 |
Largest amount outstanding on an individual day | 800,000 |
Average daily loan outstanding (28 days) | 586,607 |
Interest expense | 3,505 |
Loan outstanding as of March 31, 2023 | 300,000 |
Average interest rate | 7.68% |
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, 2023, Capinco held 47% of the outstanding shares of the Floating Rate Fund, and National Financial held 58% and Charles Schwab held 37% of the outstanding shares of the FAMCO Fund, for the benefit of their shareholders.
Note 9 – Subsequent Events
In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were available to be issued. Subsequent to the period end, the Floating Rate Fund has made the following distributions per share:
Record Date | Payable Date | Class A | Class C | Class I |
Daily | 4/30/2023 | $0.16776 | $0.15264 | $0.17225 |
On May 16, 2023, the Board of Directors approved a plan of liquidation for the Floating Rate Fund, which will occur on or about July 14, 2023. After May 17, 2023, the Floating Rate Fund no longer accepts incoming purchases.
The Funds have determined there were no other subsequent events that would need to be disclosed in the financial statements.
Note 10 – Change in Independent Registered Public Accounting Firm
BBD, LLP ("BBD") served as the independent registered public accounting firm for the Funds to audit the financial statements for the fiscal year ended September 30, 2022. On March 13, 2023, BBD sent a letter of cessation to the SEC indicating that BBD would no longer be serving as auditor. This letter was sent as a result of the Investment Management Group of BBD being acquired by Cohen & Company, Ltd ("Cohen").
The Trust engaged Cohen on February 28, 2023, as the independent registered public accounting firm to audit the Funds’ financial statements for the fiscal year ending September 30, 2023.
The report of BBD on the financial statements of the Funds for the fiscal year ended September 30, 2022, contained no adverse opinion or disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope, or accounting principle.
40
Ziegler Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2023 (Unaudited)
In connection with the Funds’ audit for the fiscal year ended September 30, 2022, there have been no disagreements, if not resolved to the satisfaction of BBD, that would have caused them to make reference thereto in their report on the financial statements for such period.
41
Ziegler Funds
EXPENSE EXAMPLE
March 31, 2023 (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, 2022, to March 31, 2023 (the “period”).
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 equals 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line of the table is useful in comparing the ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs could have been higher.
Expenses Paid During the Period
Beginning Account Value | Ending Account Value | Expenses Paid During the Period (1) | |
Floating Rate Fund | |||
Class A | |||
Actual Fund Return | 1,000 | 1,051.83 | 5.06 |
Hypothetical 5% Return | 1,000 | 1,020.00 | 4.99 |
Class C | |||
Actual Fund Return | 1,000 | 1,048.92 | 8.89 |
Hypothetical 5% Return | 1,000 | 1,016.26 | 8.75 |
Institutional Class | |||
Actual Fund Return | 1,000 | 1,054.06 | 3.79 |
Hypothetical 5% Return | 1,000 | 1,021.24 | 3.73 |
FAMCO Fund | |||
Institutional Class | |||
Actual Fund Return | 1,000 | 1,068.38 | 3.61 |
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. |
42
Ziegler Funds
OTHER INFORMATION (Unaudited)
Quarterly Portfolio Schedule
The 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.
Statement Regarding Liquidity Risk Management Program
Each Fund has adopted a liquidity risk management program (the “program”). The Board has designated a committee of the Adviser to serve as the administrator of the program. Personnel of the Adviser conduct the day-to-day operation of the program pursuant to policies and procedures administered by the committee.
Under the program, the committee manages each Fund’s liquidity risk, which is the risk that each Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in each Fund. This risk is managed by monitoring the degree of liquidity of each Fund’s investments, limiting the amount of each Fund’s illiquid investments, and utilizing various risk management tools and facilities available to each Fund for meeting shareholder redemptions, among other means. The committee’s process of determining the degree of liquidity of each Fund’s investments is supported by one or more third-party liquidity assessment vendors.
The Board reviewed a report prepared by the committee regarding the operation and effectiveness of the program for the period June 1, 2022 through December 31, 2022. No significant liquidity events impacting the Floating Rate Fund were noted in the report. In addition, the committee provided its assessment that the program had been effective in managing the Floating Rate Fund’s liquidity risk.
43
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.
44
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.
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/ Russell B. Simon
Russell B. Simon, President
Date 6/9/2023
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/ Russell B. Simon
Russell B. Simon, President
Date 6/9/2023
By /s/ Eric T. McCormick
Eric T. McCormick, Treasurer
Date 6/9/2023